Whether you are buying property for investment or to live in extreme care should be exercised to ensure your purchasing experience is stress free and risk free. These few buying tips will make you aware of some of the pitfalls and ways to avoid them. Legal expenses for buying a typical house are your solicitor's fee (negotiable, but say $500-$2,000), survey and building certificate if required and not provided by the vendor ($450), disbursements for documents ($300 plus $50 if a unit) and building inspection and pest report ($400-$500). These are average figures. If buying at auction you should have decided on a definite upper limit within your means
Before Purchasing a Property
Think about why you are purchasing the property. If you intend living in the property does it really suit your needs? If you have young children or elderly people living with you, you might wish to avoid stairs and prefer a level block. Do you intend to install a pool in the future? Is the garden too big or too small? Will you need more bedrooms in future? Is it close to schools etc. Be sure to have reports for building inspection and pest inspection prior to committing to the purchase. If you are buying a villa, apartment or townhouse you may be sharing a common wall with your neighbours. It would be advisable to check noise levels if possible.
The Costs of Buying a House
Traditionally, the main cost of buying a home - apart from the sale price - was the stamp duty payable to the State Government on the purchase of a dwelling or vacant land. While it is still a major cost, changes that came into effect on July 1, 2004 mean that first home buyers may be exempt from this tax. The accompanying table provides an explanation of the changes but basically, first home buyers are exempt from paying stamp duty on homes valued up to $500,000. In addition, for first-home buyers there is a $7 000 grant on new and established houses and units as part of the GST compensation measures. Don't buy a property on a busy road or without a carpark because it is cheaper.
Property Investment for Beginners
Buying a property as an investment can have big benefits in building long-term wealth, but it also has some major pitfalls. The first rule is to buy an investment real estate in a growth area. You need to get capital growth as well as negative gearing. Negative gearing is basically when you borrow a large percentage of the money for a property investment, and there is a shortfall between incoming rent and outgoing repayments. This shortfall in interest repayments is tax deductable. It is important to make sure the property can be sold quickly in case people find the mortgages too much. You make money when the value of your property rises or alternatively you have more rental income than property and finance expenses.
Purchasing Without The Stress
For most of us, buying a home will be the largest and most expensive purchase we will ever make. It will also be the most stressful. However, by choosing to purchase through a buyers’ agent, you can pass this stress onto someone else. Their aim is to find a property for the buyer and negotiate the lowest possible price for their client. In some instances, they can advise against buying particular properties if they do not think they are wise purchases. Deciding how much to offer can be difficult. You might wish to make your best offer up front or start with a lower offer and be prepared to negotiate up.
What is a Buyer's Agent?
It is generally accepted that real estate agents act largely for the vendor and the buyer has to fend for himself. However, this is changing with the emergence of buyers' agents, who act solely on behalf of the purchaser. Buyers’ agents or buyers’ advocates as they are also known, have only just begun to emerge in Australia. They tend to offer two main advantages: expertise and skill in assessing properties, and the ability to make sure the client gets the property for the lowest possible price. They are usually former real estate agents that have experience in the whole buying and selling process.
Brisbane / qld