Select Conveyancing

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.

 

If you own or are considering buying a unit, townhouse or villa, chances are that it will be administered by a strata title or a company title.

Prior to the 1960s, it was standard for units to be bought and sold within a company title. It allowed people to buy a unit rather than a house and provide for separate shares of the space within the one property. These shares give you exclusive use and occupation of the unit. It is however increasingly rare as most buildings convert to strata title due to the many benefits it offers.

Strata title was introduced in the 1960s to give legal ownership of a portion of the building. It is suitable for both residential and commercial properties.

Naturally, both strata and company titles are legally different. They come with their own list of pros and cons which also varies from state to state. It is vital that you gain advice as to the financial and legal implications of owning either type of property.

Strata Title

Cons

• Owners are required to pay quarterly levies to manage, insure and maintain the property, vote at AGM’s and abide by any bylaws (not really a negative but it is something to consider).

Pros

• It is a trusted, fair and transparent system used by almost all buildings.
• Owners get an equal vote on large decisions.
• There is a clear surveyed diagram showing which parts of the property are common areas and which are owned by individuals.
• Properties under a strata title are generally worth 10% to 20% more than properties under a company title.

Company Title

Cons

• It can sometimes be difficult to borrow to purchase a company title property with some lenders requesting a larger deposit to buy. This then lowers the risk to the bank on the property value.
• Owners don’t own the property title, instead, they own a share in a company that owns the title.
• They can be slower to sell than strata title properties.
• Company constitutions can limit who can buy into the property if the property can be rented out and even what changes can be made.

Pros

• Investors may make money if purchasing and later the company title is changes to a strata title, adding instant value.
• Properties can be cheaper to buy.

There is also another option – Stratum Title – This is a combination of both of the above with the owners having a property title and a company owning the common property.

Select Conveyancing Lane Cove is here to help you every step of the way with your property purchase or sale. Contact us today to discuss your needs. 

In our last blog, we wrote about a certificate of title is and the security features of this title.

As part of buying a property, your conveyancer will complete a title search of the property you are looking at purchasing. This title search will reveal key information about the property so that you can make an educated decision about the purchase.

A title search shows

Who owns the land – Your search results will include the name of all landowners. On the occasion that there is more than one owner, it will show the type of ownership. This may be tenants in common or joint tenants.

If there are easements – Should your property show an easement, this is a right of way given to another who does not own the property. This right of way gives permission to use the property for a specific purpose. Or it may be for service access allowing workers to access drainage in your backyard. Having an easement can restrict your use of the land and may prevent you from building in that area so it’s important that you’re aware of them before you buy.

If there are caveats on the property – A caveat shows that someone else has an interest in the property. If someone has a potential claim to part or all of a property, they may lodge a caveat, which prevents the owner from selling their property clear and free. A builder may put a caveat on a property if the owner owes them money.

If there are covenants – A covenant is a guideline or restriction on the land that can limit what can be built on it. It may also restrict where it can be built and from what materials it can be built with.

If there are mortgages on the property – When there is a mortgage on the property, the bank holds the Certificate of Title, rather than the property owner or a solicitor. The mortgage provider will be listed on the title. As part of buying and selling property, any mortgage will generally be discharged at the property settlement.

Should you have any questions about performing a title search on a property or your conveyancing requirements, please contact Select Conveyancing. 

A Certificate of Title is the official ownership of a property and is issued by the Registrar of Titles in NSW. 

A Certificate of Title is a copy of the related folio of the Torrens Land Title Register that is issued by Land and Property Information (LPI) to the registered proprietor, mortgagee or chargee. A current edition of a Certificate of Title will normally detail title information including the name/s of the owner/s, the lot/plan numbers and other registered interests on the title such as mortgages, easements and covenants. Source: NSW Government Land and Property information.

If you do not have a mortgage on your property you may have this paper in your possession. When it comes to selling your unmortgaged property you will need to provide the Certificate of Title as proof of your ownership. Without this certificate, you will not be able to sell your property.

Do you know where your Certificate of Title is?

Has it been lost or are its whereabouts are unknown? The application of a replacement can take some time so it is wise to do this early in the selling process so that when you have a buyer your property can settle with ease.

Security features

Since 4th January 2004, there has been the introduction of security features within every certificate issued.

Security features were introduced due to an increase in identity fraud. Due to the availability of scanning and printing technology it has made it very easy for people to fraudulently produce many different types of documents. This includes Certificates of Title.

Certificates of Title produced prior to 4th January 2004 do not include security features. Additional measures need to be taken to verify the identity of people who have possession of a Certificate of Title prior to this date.

The security features include and vary throughout the years since 2004:

• Security trust seal
• Certificate Authentication code
• Fine line pattern
• Two barcodes
• End of certificate noted
• Certificate of Title printed on the side in brown
• Specifications of 120gsm paper
• Watermark
• Sequential numbering
• NSW state emblem
• Microprinting
• Silver seal
• Background printing

If you have any questions about your Certificate of Title please contact Nicola at Select Conveyancing Lane Cove.