Buying a House

HOME BUYERS GUIDE
With Queensland house prices still holding (the lower end being driven by first home buyers) compared with the other States, and an annual net migration of 80,000 pa inwards despite stagnant national growth, it shows the Sunshine State is still the place to be. Unfortunately this means you’ll pay a premium, but at least you’ll be confident of future capital growth. An average house block in Stanthorpe is now $50,000, but nearby country ones are cheaper. In Warwick the developers are a bit quicker off the mark and several subdivisions have commenced. There is to be a 200 bed retirement village built in Warwick as well and with local retirees taking up some places there should be a wider choice for homebuyers.
Know What You Want
• Spend some time researching areas where you are interested in living.
• Determine how far away from your work, schools, family and friends you will be if you decide to live there.
• It's also worthwhile checking out local facilities including shopping centres, restaurants, entertainment complexes, sports and parks and gardens.
• Hospitals., medical services, public transport depending on your age.

When you've decided where you want to live, think about what you need and want in a home.
• What size and style home do you want to buy? Do you need room to grow? Would you like a garage, a big backyard, afford a swimming pool?
• Is the area suited to your lifestyle and entertainment needs, will these needs change? Houses tend to be held for 7 years.

Know What You Can Afford?

You can get a good idea how much you can afford to spend on a new home using the following equation:

The Amount You Have Saved for a Deposit PLUS 3 x Your Gross Salary (How Much You Can Borrow) PLUS
How Much You Can Sell Your Current Home For MINUS The Mortgage on Your Current Home MINUS
Transaction Costs MINUS Personal Loans/Cards EQUALS How Much You Can Afford to Spend!
Allow for legals and inspections (say $1,000) and stamp duty and any loan application fees PLUS mortgage insurance and removal expense.

Don’t forget:
1. interest rates go up and down so allow a good margin
2. education and health expenses are on the rise.
3. many financial “wizards” are forecasting a period of high inflation.
4. check your job security.
5. rentals are rising.


Searching for a Home

There are plenty of useful resources to check out when you're looking to buy a home. Have a browse through:
- Internet Property Sites
- Local, State and National Newspapers
- Real Estate Publications

Its also worthwhile popping in for a chat with Real Estate Agents in the areas you like, and driving around looking for "For Sale" signs. Take a camera and notepad. Also I keep a scrapbook of newspaper cutouts, to keep a ready record of asking prices.

Most homes will be open for inspection on a Wednesday or Saturday, or you can arrange a private inspection with the agent.

What to look for at an Inspection?
When you start inspecting properties, there are a few things to consider:
• Location, location and street appeal.
• Garaging, stairs, ease of living.
• Rates/body corporate costs.
• Is there any obvious structural damage or major things that need fixing?
• What appliances are included?
• Is there heating? Ceiling fans? Air-conditioning?
• Are the laundry facilities suitable?
• Are there safety and security features such as security doors, smoke alarms and a burglar alarm?
• Are there enough power points and phone lines?
• Will you be able to set up your PC and Internet connection easily?
• Will the hot water system meet your needs?
• Is there sufficient parking for you, your caravan, and any guests?
• Is it convenient to work, public transport, and amenities?
• Is a scenic view important?
• Will you need to, and are you prepared to renovate?
• Will this property increase in value?
• Are there any major developments scheduled that may change the area you choose?
How Do I Make An Offer?
• The key to making a successful offer is working out what the property is worth, and what price the seller is prepared to settle on – it is a competition! (You can ask your Lender for their valuers name in your region and request a “drive-buy”.
• Get a feel for the market by finding out what similar properties in the area are selling for. Check with Agents as to actual settled sale prices in the area and trends. You can buy sales data over the net.
• Only decide to make an offer prior to auction if you have considered the market and whether the property is likely to be sold for more or less than the asking amount.
• Making the right offer prior to auction may prevent the possibility of someone outbidding you on the day.

I've been Gazumped!
• When you've made a verbal agreement to buy a property, and the seller then enters into a written contract with another buyer (usually at a higher price) you've been gazumped.
• It hurts, but gazumping is not illegal. Remember, a contract for the sale of property or an interest in property must be in writing and signed to be enforceable.

Going to Auctions
• Go to a few auctions before you're ready to buy. It's the best way to get a feel for what goes on and how they are run. It can be an eye opener!
• It will also help determine the market, you may find listing prices aren't realistic to what properties are actually being sold for.
• You shouldn't exceed the maximum amount you're willing and able to pay.
• If your bid is successful, you'll be required to sign a binding contract and pay a deposit.
• If the vendor isn't happy with the highest bid at auction, the property will be passed in, and the highest bidder will probably be given the first opportunity to negotiate.
• The Auctioneer will say the property is “on the market” during bidding – this means it now exceeds the reserve.
• Decide beforehand whether at what level you will stop as on the day it'll be tempting to offer more than what you can really afford.

What Happens When I sign a Contract and Pay a Deposit?
• Take the Contract to a Solicitor before signing. Make sure Clauses to cover Building Inspections/Finance/Special Conditions are in order.
• When you pay a deposit, the Real Estate Agent is obliged to pay that money into a trust account and issue a trust account receipt.
• It's best to have your solicitor or conveyancing agent manage things from here to settlement. They'll act on your behalf and keep you informed with how things are proceeding.

Making the Legal Transfer

The legal transfer is called conveyancing. You need to ensure the property is properly transferred from the seller to the buyer. This can be done three ways:

Through a Solicitor
• A Solicitor is required to have professional indemnity insurance which protects you if any mistakes are made.
• They will charge a fee in relation to the property price, mortgage and type of title. There may be additional fees in relation to the type of search required and things like photocopying. Get a quote.
• Any purported savings that may be made by using the same solicitor as the Vendor often evaporate – the Solicitor can’t really serve two masters!
• Some Vendors and Purchasers will only use an-out-of-town solicitor to similarly avoid any conflicts of interest with the Real Estate Agent.

Through a Conveyancer
• A Conveyancer specializes in conveyancing only and will usually charge a flat fee for their services. The quality of service can be a bit “hit/miss”.
• There may be extra charges for things like photocopying and complicated searches.

Do it Yourself
• A Do It Yourself kit is available. You must become a member of The Law Consumers Association to obtain the kit though.
• If you make a mistake, you DO NOT HAVE INDEMNITY INSURANCE to fall back on like you do with a solicitor or conveyancer.
• You will also still have to pay fees for searches and certificates.

Good luck! We hope you make a successful move to our region and look forward to meeting your storage needs.☺