Create a wish list
Your needs will influence where and what you buy. Therefore it is good idea to start with a list of everything you are looking for in a property, though bear in mind that you might need to compromise some of your wishes. We at Ray White Bulimba recommend selecting 2/3 ‘must haves’ on your list, i.e. your highest priority in looking for a home. For example, if you are investor the rental yield and maintenance of a property may be your top concerns.
Research the market place
Seek advice from your Ray White Bulimba agent, they can provide comparable sales in the area. The Internet is another good source for information, reports and statistics and can be done conveniently from home. Drive around the area, visit open homes and attend auctions to see what is happening in the market place.
Where to find a property?
Ray White Bulimba advertises every week in the Saturday Courier Mail Real Estate Lift-out & local South-East Advertiser. Our properties are also on display in our office windows and property guides, including the Urban Living Magazine are available free of charge from the Ray White Bulimba office.
Be Financially Prepared
Many buyers begin looking for a property without even knowing what they can afford to spend. This can be a big mistake, for many buyers end up disappointed when having found their dream home to only find out that they do not have the borrowing capacity to purchase it.
On the other hand, buyers can restrict themselves to a certain price without knowing that their real borrowing capacity could fulfill more for their wish list. Ray White Bulimba recommends buyers to seek financial advice from a lending institution or mortgage broker to determine their borrowing capacity.
The Loan Market, a local mortgage brokerage, can assist you in pre-approving your finance and most often even save you money. For further information visit: www.loanmarket.com
Buying a First Home
If purchasing a property as your principal place of residence for the first time, you may be eligible for the Queensland government’s First Home Owners Grant. The grant was introduced to offset the effects of GST. Under current legislation the State offers a base entitlement of $7000 when you build or buy your first home, but you must fulfill certain criteria to be eligible.
Buying as an Investor
Buying an investment property is different from buying as an owner occupier. Your decision will not be based on emotion but things like rental yield, body corporate fees of unit purchases and how attractive it is to the rental market. Buying an investment property also has tax benefits associated with negative gearing and can be less volatile than purchasing shares.
Ray White Bulimba has several avenues to assist the investor. We have a specialised property management department which can keep you up-to-date with the current rental market and new investment opportunities. Our sales team is educated on what the rental market demands and can recommend suitable properties.
Ray White Bulimba’s New Projects division which specializes in new property developments is another great service for investors. Here you have the opportunity to acquire new stock that is in high demand by the rental market.
When purchasing an investment always remember to research your market and seek advice from a professional.
Making an Offer
So you have found the property that includes the must haves of your “wish list”, what do you do next? Answer, your make an offer! In doing so it is important to understand the terms of a contract before signing and below is a brief discussion of the main points you will need to know.At Ray White Bulimba your real estate agent will mediate the negotiation process between yourself and the vendor until terms can be agreed.
Contract Price and Deposit – The main terms of the contract are the price you agree to pay, the deposit amount and when it is payable. Under Queensland legislation the deposit amount is up to 10% of the purchase price.Deposit Bonds – If you do not possess enough cash deposit a Deposit Power Bond can be used as a substitute.
Settlement Date – This is the day the seller hands over transfer documents and the buyer pays the Contract Price. The date is normally set 30, 60 or 90 day after the contract date. At Ray White Bulimba & Morningside confirmation of settlement from both parties is required to release keys to the buyer and any deposit monies held in trust to the seller.
Buyers Risk – Even though the transfer takes place at settlement the property is at the risk of the buyer from 5pm the next business day from the contract date. Therefore it is very important to have the property insured immediately. When purchasing through Ray White Bulimba you automatically receive a cover note from Ray White Insurance for the first 30 days.
Conditions -The 2 most common conditions of a contract are the finance clause and building and pest inspection clause. Should you require these to be conditions of your contract you will be given a due date to meet the conditions. Should you not receive finance or the building and pest report is not to your satisfaction you may terminate the contract without penalty. However the other party must be notified otherwise the contract condition will be deemed accepted. Other special conditions can be written into the contract.
Cooling Off Period – From the day the buyer receives a fully signed contract the 5 working day cooling of period begins. This gives the buyer the right to terminate the contract for any reason, even an unconditional contract. A penalty of 0.25% of the purchase price may still payable to the seller if a buyer.
Unconditional Contract – This is a contract of sale without any conditions or a contract of sale with all conditions met. The 5 day cooling off period still applies but with penalty.
The auction process can be an overwhelming experience however, being prepared with a rock solid plan of attack will help you to come out a winner on the big day.
By following these five basic steps, you are well on the way to making your day at the auction a success.
1. Set a limit and stick to it
One of the most important auction tips is to keep your emotions in check. Have a game plan, take the time to meet with your agent and discuss the best bidding strategy to suit your budget.
Research comparable properties in surrounding areas and educate yourself on where the property you are interested in should sit in the market. By doing this initial research you will know where you stand, be able to spot a bargain and it may even result in a new auction budget, higher or lower than you had originally planned.
3. Get Legal Advice
Whilst your agent will be acting in your best interest, it is always best to get some independant legal advice prior to the big day. This impartial advice can facilitate a smoother transaction, piece of mind.
4. Preparation = Success
Don’t forget, the winning bid at an auction results in a binding contract and if you are the winning bidder, your finances must be in order before auction day. Investigating all of your finances in advance will result in a more strategic auction budget and price guide as well as cement your confidence when bidding. You will also need a deposit which is usually 10 per cent of the purchase price. For professional mortgage and lending advice, talk to Ray White Bulimb’s in house mortgage broker from the Loan Market.
5. Don’t fly blind
As a basic minimum it is advised that you attend one auction in advance so you are aware of how the process works. Familiarise yourself with strategies of bidders, the procedures, rules and regulations.