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What do I have to disclose when selling

Depending on the location of your property (NSW, QLD, VIC, SA, WA, ACT, NT, TAS), some regulations mandate what you need to tell potential buyers when you sell. It is important that you gain legal advice to ensure that your situation is considered.

Let’s look at some of the general rules of disclosure.

Pre-contractual disclosure – You are obliged to disclose any limitations, restraints or defects within the title of your property.

  • Zoning – flood zones, bushfire zones
  • Easements – electrical, gas or water, or it may be a shared driveway
  • Leasing – any rental agreement that will remain after settlement
  • Covenants – the front of the property may need to remain untouched, certain colours etc.

Building approvals – If you have made changes to your property, these should be covered by approvals for the works. Conversely, it is wise to disclose anything that is not approved. Perhaps you have added a granny flat without approval; this must be disclosed.

Property defects – In most states, disclosing any known defects such as structural problems is required.

Sensitive disclosures – If the home has been used for illegal drug manufacturing, it must be declared along with proof of repair to minimise health issues. If the property has been the site of a murder, crime or accident, this may also need to be declared.

Asbestos – This should be disclosed if you have, could have, or had had asbestos. For example, the ACT requires asbestos advice and acceptance report.

Not disclosing

If you are unsure about what needs to be disclosed, your legal professional can advise you. You run the risk of heavy fines, a lost buyer, and more by not disclosing something, so it is just not worth the risk.

Are you selling your home? Speak to the team at Select Conveyancing to ensure you have everything in order. We are your local Lane Cove professional conveyancers.

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What is a buyer’s market?

You may have seen across various media channels that we are experiencing a buyers market.

Whether a buyer’s or seller’s market, it all comes down to supply and demand.

Buying or selling a property can be stressful, and a buyer’s market can still be stressful. You want to find your ideal property, but you don’t want to pay too much either. However, if you constantly offer too low, you run the risk of missing out regularly; you still need to be fair.

In a buyer’s market

  • There tends to be an increase in supply but a decrease in demand
  • Buyers can negotiate prices on their terms as they have the advantage over the seller
  • Houses tend to sell for less than they previously were
  • Homes may sit on the market longer before finding the right buyer
  • Interest rates tend to be higher

Tips for buyers in this market

  • Take your time, as you probably don’t need to make any rash decisions
  • Continue to do your research to see what is happening with pricing
  • Know what is available for sale to help you with your negotiations
  • Check out comparable properties in the area

Tips for sellers in this market

  • Ensure the property is in tip-top shape
  • A fresh coat of paint
  • Do any necessary repairs
  • Stage it well so potential buyers can see themselves living there
  • Be realistic about the price

What is a seller’s market

We have seen this recently where the prices were increasing considerably in many areas. There was less supply of properties and more buyers, leaving sellers with the advantage.

Homes sell FAST in this market, and often buyers are willing to spend more to get a property.

Now that we have shited to a buyer’s market will you be looking to buy your next property? Contact Select Conveyancing Lane Cove. 

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Buying a unit for investment

Are you considering buying a unit/apartment for investment? It remains a perfect place to start your property investment journey.

Here are some tips to consider before committing to the purchase. And before you come to making an offer on the property.

You want to make property choices that will mean an appeal to tenants who wish to live there and hopefully stay there for a long time. Plus, if you decide to sell the property, you want to have a desirable unit for a future sale.

TIPS: 

  • If you are looking at a new or recent development, do some research on the project and the parties involved in building it.
  • Look at the design of the property overall – your tenants will care about this. Does it have great access, parking, spacious living areas, generous balcony space, lift access or minimal corridors? The better your design the easier it will be to lease and the better your longterm resale value too.
  • What common area facilities does the property have? Pool, spa, BBQ, tennis court and more can be available. While this is great for your tenants and may be great for a future sale, consider the ongoing costs. Both the purchase price and the ongoing costs can outweigh the benefit of having these facilities.
  • Is the property close to transport, supermarkets, cafes and doctors? This will add value to the property for both tenants and a future sale.
  • Does the property have a garage, storage and parking? Aiming for a property that is 2 bedroom with 2 car spaces can be difficult but it will be great for tenants and great for resale in the future.
  • What are the fixtures and fittings like – The better the quality, the longer they will last, and you will avoid maintenance or replacement issues while it is tenanted.
  • Consider the acoustics of the property, can you easily hear the neighbours! If you have common walls what rooms are on the other side? Do the hard floors have the right acoustic membrane underfoot? Are the bathrooms close to the bedrooms, how close are the bedrooms for privacy? Look at the layout of the unit will sound travel?
  • Is the price a good reflection what is on offer – cheaper is not always better value for your money.

Take the time to consider the right things when you are purchasing for investment and you will hopefully gain a property that grows in value and has long-term tenants.

Once you have considered everything and you are ready, speak to Select Conveyancing so we can do all the legal work for you. Happy investing!

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House and land or off the plan – What is the difference?

Are you trying to decide if you should buy a house and land package or if you should buy off the plan?

When you are trying to decide, it may come down to your circumstances regarding the better option for you.

Here are the key differences:

Contract types

House and land – 2 contracts, one for the land and one for the builder to construct your house

Off the plan – 1 contract with the developer

After you sign the contract

House and land – You own the land as soon as the contracts are signed

Off the plan – You own nothing until the building is complete

Deposit amounts

House and land – Could be as low as $1000

Off the plan – 5% to 10% deposit is required

How much flexibility is there

House and land – Generally, with a house and land package, you will have far more choices to personalise your home

Off the plan – You may have the ability to make some changes, and it will just depend on the developer.

Settlement process

House and land – Once construction is complete

Off the plan – Within two weeks of completion

Mortgage payments

House and land – Generally, you start paying interest payments on the land as soon as the land settlement occurs. Then as payments to the build occur, your interest payments continue. Once your home is handed over, you begin paying your full mortgage payments.

Off the plan – Once the construction is complete/settlement, your payments will be due.

Stamp Duty

This varies from state to state in Australia, and it also depends on what each government is offering, for example, if you are a first home buyer.

 

When you are ready to purchase your next property, we look forward to hearing from you. Nicola – Select Conveyancing

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Are real estate agent fees negotiable

As the old saying goes – Everything is negotiable!

One of the aspects of choosing a real estate agent to sell your property is the fees they charge. In Australia, agent commissions are not regulated; the market instead sets them. This means that the prices can vary greatly from agent to agent. It would be best to ask enough questions to understand the break up of all the costs to sell your property. Spending on agent fees and commissions may see your finances for your next property impacted more than you realise.

Fees and commissions

Across Australia, real estate agent commissions vary from 1.6% to 4% of the total sale price of your property.

In Sydney, the averages are between 1.6% and 2.5%. They may also have tiered commission rates which increase their return if the property sells for above a specific figure. On top of this, you may have other fees; this is purely the commission.

Advertising and marketing fees are between 0.5% to 1% of the value of your home. These fees generally include street signage online and print advertising such as brochures and flyers.

Fixed fees or tiered commissions

The two options of fixed or tiered are worth considering when you are selling your home.

Fixed – A traditional method of the sale price multiplied by the commission rate. For example; $800,000 sale price x 1.97% commission = $15,760 payable to the agent.

Tiered – Based on the performance of the agent. You agree to a target sale price, and anything above that price is set at a higher commission. For example, Target price $850,000 at a flat rate of 2% commission and then 6% commission for everything above that price.

Negotiating fees and commissions

  • Ask upfront about the agent’s fee and commission structure when interviewing them. Don’t be shy – When you compare agents, you want to compare evenly.
  • If you are hoping for a record price, your agent may not be prepared to drop their fee as they need to work often a lot harder to get a record price.
  • Don’t just pick the agent with the cheapest fees and commission; you may get what you pay for.
  • Remember that everything is negotiable.

Is the agent any good

Ask your friends and family or anyone you know for a referral to an agent they have used and were happy with.

Look for a local agent familiar with your area and ask about their track record. Find reviews and gain as much information as you can before deciding who will sell your home.

When you are ready for a conveyancer, selling or buying, we are here to help. Get a quote from Select Conveyancing. 

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How do you make an offer on a property

With intense competition in the market, making an offer can be terrifying.

Is it too low, is it too high, what other offers have they received, what do you do if the offer is accepted?

What does ‘an offer’ mean

Making an offer on a property is to put forward in writing the price that you are prepared to pay for a property.

This ‘offer’ is then taken to the owners and either accepted, rejected or further negotiated.

If your offer is only verbal it will not be taken seriously and not taken to the seller (vendor). You must put it in writing.

The steps to take

Finance – You need to have your finance preapproved

Do your research – Research the area/s you are looking to buy to see what properties are worth

Legal – Speak to a conveyance or lawyer who will be able to review the contract of sale when you find a property

Open house – If you can try to attend the 1st open house for a property you have interest in. Here you can gauge the potential competition for this property.

Deciding to make an offer – If there is an auction planned you need to give the seller (vendor) a reason to take your offer and not go to action. It is not always the highest price, it may be agreeing to the terms that the vendor needs as part of the sale. Offer your best price and don’t play games.

Building and pest inspections – Completing these is essential if you don’t want any nasty surprises.

Offer accepted – Pay your deposit

So how do you make an offer on a property

Ultimately making an offer is both exciting and a scary time. However, if you have your finance in place and the professionals to help you it doesn’t have to be difficult.

The team at Select Conveyancing are here to help you every step of the way to owning your new home. Contact us today. 

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Thinking of buying in the New Year

Was it your New Years resolution to buy a property?

Buying a property still is one of the most popular New Years resolutions of 2022.

A recent poll by Canstar

New polling showed buying a property remained one of Australians’ top financial New Year’s resolutions for 2022, despite prices rising by the fastest annual rate since the 1980s over the last year.

The survey by financial comparison site Canstar showed 18 per cent of participants, representing an equivalent of 3.6 million people, had made a New Year’s resolution centred around money, with 21 per cent of this cohort resolving to buy a property to live in.

This was the second most popular resolution ranked by the survey’s 2124 participants, despite national price growth of more than 22 per cent over 2021.

The most popular resolution was saving money, with just under a quarter of participants aiming to grow their bank balances throughout the year.

Buying an investment property came in third, with 10 per cent of participants naming this as a major goal for 2022.

This came on the back of the latest ABS lending indicators data which showed new investor lending reached $9.73 billion in October, the highest level recorded since April 2015.

This shows that not even record prices have slowed Australians need to own a home.

Home prices

Following a year of FOMO and lower than average listings, buyers could soon find themselves in a better position to bargain if the forecasted slower price growth in 2022 come to pass.

December data showed that while home values in Sydney increased more than 25 per cent in 2021, the monthly pace of growth had slowed before the end of the year.

Property prices in Sydney grew by just 0.3 per cent in December, representing the softest monthly reading since October 2020.

After several months of low supply, properties listed for sale in Sydney rose to just short of 4 per cent below the five-year average in the lead up to 2022, providing more choice for homebuyers after a year of intense competition.

Conclusion

While there have been some incredibly crazy years of the property market you can still buy the home you dream of. Make sure that you still take the time to do your research and do not rush into anything that you may regret in the future.

The team at Select Conveyancing are here to help you every step of the way. Contact us for your next property purchase or sale. 

 

Reference news.com.au

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A move from the financial regulator

If you have been following the property market you will have seen some crazy times over the last couple of years.

This month (October 2021) the Australian Prudential Regulation Authority (APRA) announced changes to the serviceability buffer. This buffer is what it expects the banks and lending institutions to use when they are assessing mortgage applications.

The result is a reduction in maximum borrowing capacity for many who are trying to borrow.

This serviceability buffer is designed to ensure a borrower could still service a mortgage if interest rates were to rise. Banks will now be expected to apply a serviceability buffer of 3 percentage points, rather than the previous buffer of 2.5 percentage points, from October 2021.

For example, a borrower being offered a mortgage rate of 2.8% will have a maximum loan size determined by their ability to service a loan with an interest rate of at least 5.8%.

How will this change be felt?

If a borrower feels this impact depends on two things:

  1. It only reduces the maximum borrowing capacity and not everyone borrows the maximum they can afford.
  2. The buffer is not the only restriction on how banks decide the maximum loan size.

It is expected that as investors usually are hit with higher interest rates this change is likely to affect them more than home buyers.

What does this all mean?

It is more important than ever to ensure that your preapproval to purchase is up to date and you try to stay under your budget when you are looking to buy.

Overcomitting yourself to a mortgage may not be worthwhile in the long term for your own peace of mind and the chance that interest rates may move in the future.

At Select Conveyancing, we are here to help you with both your property purchases and your property sales. Contact us today

This blog is written as a guide and we strongly recommend that you seek your own financial advice. 

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Sydney property prices

The Sydney property market has been one of the most consistent over the last 40 years.

It has remained strong, year after year even with some speculating that it will take a turn.

Auction clearance rates have remained strong over the last 12 months along with more than a 20% increase in value over the last year. This 20% increase is compared to an average 7% increase over the last 10 years.

Should you buy

While property price rises have been amazing for property owners it has been a difficult time for those who are looking to buy. The demand for property has been far higher than the number of available properties in the market. This demand has made it incredibly difficult for those wanting to buy.

Expert commentators are suggesting that Sydney property prices are going to slow and become more sustainable. If you are waiting for a dip in prices, don’t, growth may slow however prices will not be reducing.

Note: Be cautious not to overextend yourself when buying property. While you may be able to borrow, think about your goals and plans for the future too.

Underperformers

  • Apartments in high rise towers remain a little out of favour
  • Off the plan apartments particularly those near universities
  • Established homes in housing estates, where new homes are on offer nearby

Should you invest

Investors have been jumping into the Sydney market to ensure they are the ones who bought while prices were as low as they are now. History shows that on average your property will double every 10 years providing excellent long term results.

Convenience is key – during a lockdown, it has been evident that having access to everything we need within walking distance or by a short drive is key. In urban planning terms, it is called having a 20-minute neibourhood. Everything you could ever need is within 20minutes of your home. Tenants are looking for this as a major benefit when they are looking for the perfect place to rent.

Note: Being 5 to 15km from the CBD has always outperformed.

Read through the underperformers above:

  • High rise towers have been plagued with defects, water ingression and fire compliance issues
  • Off the plan apartments forming a type of lego land, have received bad press. International students and universities are going through a change
  • Established homes are being ignored in favour of building new nearby for the same cost

Older apartments – those built in the 60s and 70s have stood the test of time and proved to be good investments.

Conclusion

Sydney property will always perform well. As long as you are not overstretched financially it will be a good choice for growing your wealth.

At Select Conveyancing, we are here to help you with both your property purchases and your property sales. Contact us today

This blog is written as a guide and we strongly recommend that you seek your own financial advice. 

Statistics – Corelogic 2021

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What is included in a property report

Online property reports can provide a large amount of information some of which is valuable and some not so valuable. It can help to provide you with a large amount of information that may or may not help you to decide on a property that you are looking at.

Home lenders are just one place that will offer free property reports and there are plenty of others to choose from.

What is included in a property report?

Depending on where you produce your report the information is likely to vary, however in general you can expect:

Property details – Address, pictures, floorplan, bedroom numbers, bathroom numbers etc…

Estimated value – Typically this is shown as a range with a low, middle and high value. It is determined by recent sales of similar homes in the area and it is not always an accurate reflection of what the price will actually be.

Property history – Previous sales of the property showing the year and price.

Similar properties – If there have been similar properties sold or for sale, they are generally listed. Often similar properties which are up for lease are also listed for people who may be looking to buy as an investment.

Suburb data – Nearby schools, the median property value, demographics of the local population and more.

Limitations of a property report

It can never be a substitute for going to see the property yourself. While there may be similar properties no other property is going to be exactly the same and there are many variables that can impact its value.

Should you use other online tools

There are an endless array of tools both online and offline for you to research properties.

  • Other real estate websites
  • Hiring a buyers agent 
  • Using an independent valuer
  • Visiting the local council’s website

Conclusion

Property reports are just one step in researching the property that you are looking to buy. Once decided it is ultimately the inclusion of your conveyancer that will help to ensure that the property and its contract stacks up to your expectations.

For all your conveyancing needs contact Select Conveyancing Lane Cove.