BUDGET FOR EXTRA COSTS WHEN PURCHASING A HOME

When purchasing a home be sure to account for all the costs beyond the purchase price itself.

HERE IS A SUMMARY:

• Stamp duty: This is a compulsory tax charged on any exchange of property at the time of purchase
• Legal fees: Generally a conveyancing firm or solicitor will need to be hired to analyse and oversee all documents. A title search is always needed to assure outright ownership and that there are no legal encumbrances.
• Building & pest inspections: Necessary inspections to identify all potential defects in the building(s) involved as well as in the invironment and to look for termites and other pests.
• Council and water rates:
• Mortgage insurance: This may or may not be applicable depending on the funding source and their requirements.
• Home & contents insurance expenses: Generally you will want to be fully covered for fire, damages and theft.
• Moving expenses: This covers the removalist fees.
• Disconnection & re-connection of utility services: This includes telephone, electricity, gas & internet connections.
• Strata levies when moving into a strata unit: These are quarterly assessments for property maintenance and leisure services.

There are concessions available for First Home Buyers on some of the above. A $14,000 grant is offered throught state governments to counter the effects of the GST on home purchases. Plus, there concessions for stamp duty.

If you have a question about real estate or would like assistance in locating a property feel free to phone me.

Noel Thompson, Principal, Professionals Logan Lifestyles

Waterford: PH 3299 7733 Browns Plains: PH 3800 4000 Springwood: PH 3808 5544

http://www.llr.com.au

HOW TO SUBMIT AN OFFER

A real estate agent must present all reasonable offers to the owner. The agent cannot pick and choose amongst the offers favouring one particular buyer.

Just because a vendor has your offer and is giving it serious consideration does not mean other offers are not coming in simultaneously. Unfortunately for the buyer this means that someone else can top your offer in the interim.

One move to counteract these factors is to make your offer with a date of expiration. This could vastly aid your cause, because it gives a sense of the imperative and forces the vendor to make a decision.

When making an offer you can also make it subject to various conditions. This favours the buyer, but, remember the more conditions you place on the sale, the less chances you have of your offer being accepted.

Most importantly, offers are not legally binding until both the buyer and the seller have signed a contract note (or contract of sale) and they have been notified that the other party has accepted the offer.

The contract must contain details of the property. This should always be double-checked and include price, deposit and settlement.

While the seller is not under any obligation to accept your offer, it still remains the case that a written, unconditional offer with a deposit cheque attached can be very persuasive in helping secure the purchase.

If I can be of any assistance feel free to contact me.

Noel Thompson, Principal, Professionals Logan Lifestyles

Waterford 3299 7733, Browns Plains 3800 4000, Springwood 3808 5544

www.llr.com.au

TIPS FOR BUYING THE RIGHT PROPERTY

A simple rule of thumb for investors is that you most often make your profits when you purchase the property, so buying at the right price becomes paramount. By focusing your research and time on a particular geographic locality you can develop an "investment comfort zone".

The first thing to do is to choose a geographic locality in which to concentrate your study of the market. You might choose an area of high capital growth, or maybe just your own neighbourhood. The best places for investment have good rents, low vacancy rates and are popular to live.

You will also want to choose an area you can afford to invest in. No point in looking at areas in which you cannot afford to buy.

Now that you have chosen your area the next thing is to develop your expertise in that same locale. Study price ranges, rental market data including vacancy factors, plans for potential infrastructure additions, planned developments, employment statistics and trends, school locations, transport, and local council matters. The latter includes town planning and zoning rules and regulations.

The next step is to acquire investment skills such as negotiating techniques, knowledge of finance, tax laws, and risk minimisation. All this will aid building an investment portfolio.

Finally is the ability to act when the right property arises, because with all the above, bargains will start to stand out to you.

If you have a question about real estate or would like assistance in locating a property, feel free to phone me.

Noel Thompson, Principal, Professionals Logan Lifestyles

Waterford 3299 7733 Browns Plains 3800 4000 Springwood 3808 5544

http://www.llr.com.au