Select Conveyancing

You have been through the arduous task of finding a property, agreeing to a price, arranging inspections and exchanging contracts with your home deposit.

Now you need to wait for the property settlement day, what can you expect! Settlement day usually takes place approximately six weeks after you exchange contract, however different time frames can be agreed upon.

Settlement Day

This is the day that both your financial representative (mortgage broker) and legal representative (conveyancer) arrange the passing of ownership to you.

On this day your conveyancer meets with the vendor (seller) legal representative along with yours and the vendor’s financial representatives.  Cheques and documents are exchanged and transferred into your name. Your representatives are all there to ensure that everything takes place correctly. Traditionally this process was done in person at an agreed location, now it is all electronically processed.

Just prior to the settlement you will have a final inspection of your new property. This is the day for you to ensure it is in the condition that you expect it to be.

Once all the above financial and legal processes have taken place and all is correct you are able to collect the keys for your new home. You can pop the champagne and move in or prepare it for renovations or for tenants.

A few items prior to settlement day

Insurance – both property and contents insurance is one of those necessities. To comply with your mortgage agreement you may have had to arrange property insurance and share a copy with your financial provider for settlement to take place. An additional consideration is that depending on the property you are purchasing there may be insurance issues to consider. Is the property subject to flood, are you in an area with a high crime rate? It can be wise to check insurance costs prior to exchange, just in case there are potential problems.

Moving – When it is your own home, particularly your first home, moving in is exciting more than it is stressful. Make sure you plan for your move by arranging the removalists early and clearing out any clutter rather than moving it with you.

Renovating – Will you be renovating before you move in or once you have moved in? If you are very organised you can have trades ready to go immediately following settlement or you can move in and get the feel of your home before you start renovating.

Renting it out – By choosing a property agent prior to the settlement you can minimise the amount of time that your property may be empty before you find a tenant for your investment.

Conclusion

Buying a property is always an exciting time. Whether it is your first property, the third or fifth property you should be excited by the process of this big investment. Having the right people (professionals) around you purchasing a property is a wonderful way to secure your financial future.

When you are buying a property contact Select Conveyancing Lane Cove as your legal representative for the sale. We can help you before, during and after settlement day, so you know just what to expect.

A real estate agent who assists in you finding and purchasing a property is known as a buyers agent. They generally offer a number of services which range beyond finding a property that meets your needs to:

• Appraising the property
• Inspecting the property for you and with you
• Dealing with vendor agents
• Negotiating a sale price
• Bidding at auction
• Arranging property inspections
• Gain access to off market properties
• General property advice
• Benefitting you by only having to deal with one person rather than various agents

Selecting a buyers agent

• Ensure they are a licensed real estate agent including checking their license credentials
• Are they exclusively representing the buyer only in the purchase transaction?
• What experience do they have in search and negotiation?
• What fees are there for the service and what will be charged if they don’t find you a property
• Assess their terms and conditions to see what happens if you are not happy with their performance
• Do they have a large network of agents they work with
• Are they a member of any industry associations
• How often will they be in touch

Rules of conduct according to fair trading NSW

• When signing a buyers agency agreement, the agent is required to prepare and give you a statement of property details, which is signed by the agent.
• The buyer’s agent must declare any conflict of interest in representing you. The agreement must specify:
  • details known to the agent of the type of property to be purchased
  • details of any special instructions about the property to be purchased eg. requirement for vacant possession.
• The buyer’s agent must keep you informed of each stage of the negotiations of a purchase price
• The buyer’s agent is required to obtain the best possible purchase price for you
• The buyer’s agent is not to exceed the agreed purchase price in negotiations or at auction without your express written authority
• The agent must not accept any payment for referring you to a selling agent

Agency agreements

When you find a buyers agent there will be an agency agreement for you to sign. Do not sign the agency agreement before you understand what it means for you in terms of costs and what the agent is committing to do for you. If there is anything you don’t understand, contact Fair Trading or your solicitor.

Commission, fees and expenses

Buyer’s agents may charge a fixed fee or a percentage of the purchase price. You can negotiate this price as it is not set by law.

Disputes

If you have a dispute with your agent and you are unable to resolve it, you can lodge a complaint with NSW Fair Trading or call 13 32 20.

Conveyancing

When you have found your property contact Select Conveyancing to look after all your conveyancing needs to finalise the purchase of your property.

If you are a property investor or you are thinking about investing in property then keep reading.

Most people are familiar with stamp duty as a one-off payment when you purchase a property. Land tax is different, it is an annual or quarterly tax paid to the state or territory when your investment property is. It applies for land with our without a building, so when I say land it is the value of the land alone regardless of the building on it.

Land tax is currently a concern only for property investors however in NSW this may be changing. NSW has plans to eliminate stamp duty and replace it with a land tax which is payable for the duration of homeownership. In NSW stamp duty can be quite costly and even prohibitive to buying property. The proposal will turn this into a land tax that is payable ongoing for both owners occupiers and investors.

What does land tax currently cost for investors?

Varying state to state land tax also has thresholds and tiers – currently, for NSW the threshold is $755,000 land value.

Above this in NSW $100 plus 1.6% of the land value is payable. If your land value is $1million your land tax is $4020 for one calendar year.

VIC – Victoria has a sliding scale for land above $250,000

QLD – Queensland has a sliding scale for land above $600,000

SA – South Australia has a sliding scale for land above $450,000

WA – Western Australia has a sliding scale for land above $300,000

ACT – Australian Capital Territory has a fixed fee and a sliding scale

NT – Northern Territory does not charge land tax

TAS – Tasmania has a sliding scale for land above $25,000

As a property investor, land tax is something that you need to take into consideration as it will impact future expenses for your property. Land tax is deductible and your accountant should be able to provide you with further answers based on your circumstances.

If you are looking to purchase an investment property please contact Select Conveyancing Lane Cove as your local conveyancers.

Typically there are two ways to buy a property that is listed for sale. One is a private treaty and one is an auction.

Regardless of the way you choose to buy your property a conveyancer is here to help you every step of the way.

Private Treaty

The most common way to buy in NSW is by private treaty. A house or unit is advertised for sale, with or without a price and then prospective buyers can negotiate the sale price. This negotiation is usually via the selling agent but it can also be done directly with the seller.

Once a price is agreed upon the contract of sale can be activated via the exchange of contracts. At this time as a buyer, you will have to pay a 10% deposit. A standard contract of sale has a ‘cooling-off period’ in which you can change your mind. Often though the seller will require that you waive this option so they know the sale is locked in.

Your conveyancer will explain the implications of waiving this option or not agreeing to this option. For example not agreeing to this means that the property can be sold to someone else.

Auction

An auction can seem to be a worrying experience, if you are the highest bidder and above the reserve, you will own the property. There is no cooling-off period and you are bound to go through with the purchase then and there.

It is therefore vital that you have your conveyancer view the contract of sale prior to the auction. So long as you stick to your budget and don’t get caught up in the moment an auction is no riskier than a private treaty.

By having your conveyancer view the contract you will be able to identify any terms you are not happy with and have them altered prior to the auction. A conveyancer also ensures that you are buying exactly what you intend to and that it is in the condition that you expect it to be in.

If you do happen to be the winning bid you are able to do so with peace of mind.

Conclusion

Buying property is going to be the single largest purchase that you make. Having the right conveyancer can make it far easier and less stressful.

Contact Nicola at Select Conveyancing for your property purchase. 

Buying a property is an expensive exercise and it is tempting to try and save money.

You may feel that you and perhaps your partner are more than capable of inspecting a property and find any potential issues.

However, by choosing a professional who is not emotionally invested they are trained to notice things that you may miss. They will help you to potentially save money and ensure your new home is safe and sound.

What is a pre-purchase building inspection?

Carried out by a qualified inspector, it is an overall assessment of the condition of a property. They will inspect the property from the top to the bottom. Looking at the roof, down to the structure of the underneath of the house. Then as part of the report, you will be provided with estimates to repair any issues. This report gives you the power to potentially negotiate the sale price of the property.

The vast majority of buyers also have a pest inspection to check on any termite or other pest issues.

What will be looked at?

Structural – You want to know that your property is structurally sound. Some structural issues can cost many thousands or tens of thousands to repair, assuming they can be repaired.

Necessary repairs – Your report will provide you with a list of repairs that are necessary for the property. Along with a list that may have to be looked at in the future.

Unsafe areas – Perhaps the home has asbestos or there is a deck that needs repairs.

Electrical wiring – Faulty or old dangerous wiring increases the chance of a fire in your home. If this is found you may be up for the cost of rewarding the property.

Smoke alarms – There are laws that require properties to have smoke alarms and enough to cover the property.

Additional structures – Garages, sheds and more all will be inspected.

Note: The property inspection is not generally looking at cosmetic issues although some may include it in their report.

What will a pre-purchase building inspection cost

Of course, this price is variable but you should expect to pay an average of $600 depending on the property size and location. It is a small price to pay when you are spending hundreds of thousands or millions on a property.

Conclusion

If you have any questions about arranging a pre-purchase building inspection please get in touch.

At Select Conveyancing, we are here to help you every step of the way in purchasing your property.

If you have been working hard to save a deposit for your first home you will understand the struggle. You may feel that it doesn’t matter how much you save, property prices seem to be increasing at a faster rate. This can leave you feeling that property, particularly in Sydney is out of reach.

You may be fortunate to have parents who have the cash to support you with a cash gift to help with the purchase of your first home. Or they could support you with a guarantee for all or part of the loan for you to buy your first home.

This could get you on the property ladder much sooner than if you are just trying to save that 20% deposit.

A guarantor

Having a guarantor could potentially help you to get on the property ladder much sooner. Could your parents help secure your first home?

A guarantor can guarantee all or a portion of the loan amount depending on what the banks agree to. By only agreeing to guarantee a portion of the loan a guarantors risks are ultimately lowered.

Risks – If you decide to not pay the loan the guarantor and their assets are ultimately responsible for the loan or loan portion. You may end up paying more for your property as you are borrowing more and the interest costs associated across the life of the loan are increased. It could put a strain on the relationship with the guarantor due to such a big financial commitment.

Both parties should seek independent legal advice before entering into this type of arrangement.

Loan amount – Some lenders will permit borrowing of 100% or even more than 100% however there are many factors when it comes to borrowing and the loan amount that will be approved. Some lenders will also want to see what savings you do have and if you have a good track record of saving money. All lenders will also review your capacity to repay the loan.

Who can be a guarantor

Generally, lenders and banks will want your guarantor to be an immediate family member such as a parent. In some instances, they may permit others such as a grandparent, sibling or good friend. Regardless it is vital for the guarantor to have a good credit score, equity in a property and a stable income.

Conclusion

If you are fortunate enough to have someone who can help you buy your first home treat it with the respect it deserves. Work hard to make your repayments and in time have the loan reviewed so their guarantee can be removed.

When you are looking to purchase contact the team at Select Conveyancing Lane Cove to look after your conveyancing needs.

2020 has seen many people decide they want a lifestyle change. This has meant selling up and moving for a tree change or seachange. Plus there has been an influx of first home buyers into the market. So even with a pandemic, there has been considerable movement in the real estate market.

House prices, particularly in Sydney, have remained strong despite all the challenges of 2020.

What does it cost to sell your home?

Real Estate Agent – Generally between 1% and 2% of the sale price.

Remember that the lowest price (commission) is not always the best. As in any transaction do your research and choose someone with proven results and local knowledge.

Marketing – From $5000 to $8000 and includes photography, floor plans, advertising, street sign etc.

Presenting your property in the best way possible will help to ensure that you receive the maximum sale price. Walkthrough videos have become popular as they provide a first-hand view without having to do a property inspection.

Home staging – From $2000 to $4000 depending on the size of the home.

Staging your home for sale can help you to gain a better sale price. It sets your home in the best possible light for people to be able to imagine themselves living there without any of your personal items to distract them.

Auctioneer – Generally $1000 or it may be included if the agent has an inhouse auctioneer.

Renovations or repairs – Variable, depending on what you decide you would like to complete prior to listing your property.

This may be a fresh coat of paint throughout, a garden tidy and always a mown lawn.

Conveyancing – $1500 to $2000 – Contact us for a specific price for your circumstances.

Capital Gains Tax – Dependant on the property owners situation and the time they have owned the property.

Moving costs – $500 to $2000 depending on the size/contents of your home and where you are moving.

Mortgage fees – Varies from lender to lender and is generally $300 to $400

Naturally, these rates are all an example of what you can expect to pay. With everyone’s circumstances, properties and locations different these prices will vary. Take the time to seek out professionals and do your research.

For all your conveyancing needs contact the team at Select Conveyancing Lane Cove. 

 

NSW plans to phase out stamp duty – what this could mean for you

Depending on your circumstances there are various outcomes for this proposed change to stamp duty in NSW.

In simple terms, buyers of property in NSW will be given two options:

• To pay their stamp duty at the time of purchase.
• Or to pay it as an annual property tax which remains for the future of the new and any future homeowners.

Depending on circumstances

You currently have a property – There is no change and you will not have to pay any more tax as you will have paid at the time of purchase.

Planning to buy your first home – Under the proposed changes and if eligible, you will have access to the first home buyers grant. Plus the choice to pay a one-off stamp duty or have an annual property tax bill.

Planning to buy your next home – Under the proposed changes you will be given two options. To pay your stamp duty upfront (one-off) or have an annual property tax bill. Note that will Sydney house prices the annual property tax could be $5000 per year.

Investing in property – Investors will be given the choice to pay stamp duty and land tax upfront or an annual property tax.

The time you are planning to stay in the home

When calculating your options you should think about the amount of time that you will be planning to spend in the home. Under the proposed changes if it is longer than 7-10 years it will be cheaper to pay your stamp duty upfront.

Conclusion

It is important to note that these choices will affect the property. Once the choice is an annual property tax, that choice will stay with the property for its life. So as discussed and depending on your circumstances there are various outcomes for NSW plans to phase out stamp duty.

The team at Select Conveyancing will be here for you if these proposed changes come into effect. Contact us about your next property sale or purchase.  

 

Are you hoping to buy or build your first home? The NSW Government is offering a grant and assistance with the transfer duty for first home buyers.

New homes

If you are buying or building a new home you may be eligible for $10,000 under the first homeowner’s scheme.

You may be eligible if:

• Your newly constructed home is valued at less than $600,000
• The land and dwelling you intend to build has a combined value of less than $750,000

Eligibility:

• You are an individual (not a company or trust) over 18 years of age
• You or the person you are buying with is an Australian citizen or permanent resident
• You or the person you are buying with has not owned or co-owned property in Australia or previously received the first home owners grant in Australia.

The application is done through your bank or home loan broker. Read about first home buyer compliance

Homebuilder program

If you are building a new home you may also be eligible for the Australian government grant of $25,000.

You may be eligible if:

• You sign a contract between 4th June 2020 and 31st December 2020
• Commence building within 3months of the contract date

Read about the Homebuilder program

The first home buyer assistance scheme

In addition there is a whole range of threshold changes from 1st August 2020. Within this, you may be eligible to apply for an exemption or a reduction of duty charges. First home buyer eligibility remains the same as above.

This assistance scheme applies to first home buyers:

• buying an existing home
• buying a new home
• buying vacant land on which you intend to build a home.

For homes or vacant land bought between 1 July 2017 and 31 July 2020, you can apply for a full exemption if:

• the value of your new or existing home is less than $650,000, or
• the value of your block of land is less than $350,000.

You can apply for a concession if:

• the value of your new or existing home is between $650,000 and $800,000, or
• the value of your block of land is between $350,000 and $450,000.

If you buy a home or vacant land between 1 August 2020 and 31 July 2021 you can apply for a full exemption if:

• the value of your new home is less than $800,000, or
• the value of your existing home is less than $650,000, or
• the value of your block of land is less than $400,000.

You can apply for a concession if:

• the value of your new home is between $800,000 and $1 million, or
• the value of your existing home is between $650,000 and $800,000, or
• the value of your block of land is between $400,000 and $500,000.

You must have already exchanged contracts to purchase your first home or vacant land.

If you are curious about your eligibility speak with us about the First Home Buyers Assistance scheme.

Information supplied from NSW Government First Home Buyer and Grant Assistance website on the day of publishing 27th October 2020.

Buying and selling a property can be an expensive exercise and it is not something you want to get wrong. Both buyers and sellers want the process to be smooth, correct and without any hiccups.

Conveyancing is the legal work involved in preparing the sales contract, mortgage details and other related documents to complete a property sale. 

Who can do conveyancing work

• A licensed conveyancer
• A solicitor
• Yourself

So the simple answer to ‘can I do my own conveyancing’ is yes you can.

Risks of DIY conveyancing

The choice of DIY conveyancing seems like a good way to save some money at a time when it seems that you have money going in several directions. However, there are MANY risks involved, here are a few to consider.

Fines or contract breach – Ultimate you are paying a conveyance for their training, skills and experience to manage the process from beginning to end. This includes handling any curveballs that may be thrown into the mix. These curveballs can potentially cost you thousands more than if you used a licensed conveyancer for your transaction.

The process takes longer than expected – You may spend 10, 20 or even more hours working on your property settlement. How much do you earn per hour doing your job? Potentially it is a false economy to try to do this process yourself.

Panic sets in – Remember that a conveyancer is there to perform a number of tasks on your behalf.

• Reviewing the contract for potential errors or red flags which you may miss
• Conducting legal searches
• Liaising with the other parties within the transaction

Plus included in your fee is advice and guidance if an unexpected issue pops up. They have the experience and knowledge to deal with any challenging situations. Not to mention they also have insurance to protect you if something really goes wrong.

Conclusion

Legislation, trends and insurance are all changing regularly and if you are not experienced in these areas DIY conveyancing is a risky business. For the sake of saving a few hundred dollars is it going to be worth the risks involved which could end up costing you thousands or even tens of thousands.

Contact the team at Select Conveyancing Lane Cove to have peace of mind with your next property settlement.