Your needs will influence where and what you buy. It is good idea to start with a list of everything you are looking for in a property, though bear in mind that you might need to compromise some of your wishes. We at Ray White Toowoomba recommend selecting two or three high priority items. If you are an investor the rental yield and maintenance of a property may top your list. Should you be purchasing your own home the location and characteristics may be of more significance.
Research the market place
Seek advice from your Ray White Toowoomba agent, they can provide comparable sales in the area. The internet is another good source for information, reports and statistics which can be conveniently accessed from your home. Drive around your area of interest, visit open homes and attend auctions to see what is happening in the market place.
Where to find a property
In addition to this site, Ray White Toowoomba advertises listed property on all major web providers and weekly in the property supplement of The Chronicle newspaper which reaches over fifty thousand readers each weekend. Properties are also on display in our office windows and buyer guides available at the agency in Herries Street.
Be Financially Prepared
Many buyers begin looking for a property without researching what they can afford to spend. This can lead to disappointment when, having found their dream home, they discover their borrowing capacity will not enable a purchase.
On the other hand, buyers can restrict themselves to a certain price without knowing that their real borrowing capacity may have fulfilled their wish list. Ray White Toowoomba recommends buyers seek financial advice from a lending institution or mortgage broker to determine your borrowing capacity.
The Loan Market, a local mortgage brokerage, can assist you in pre-approving your finance and often save you money by approaching a number of institutions on your behalf. For further information visit: www.loanmarket.com
Buying a First Home
If purchasing a property as your principal place of residence for the first time, you may be eligible for the Queensland government’s First Home Owners Grant. The grant was introduced to offset the effects of the GST in 2000. Under current legislation the State offers an entitlement of $7000 when you build or buy your first home. You must fulfil certain criteria to be eligible. A stamp duty exemption is also currently available for purchasers up to $500,000.
Buying as an Investor
Buyers of an investment property often have differing requirements from owner occupiers. Your decision will not be based on emotion, rather characteristics such as rental yield and tenant appeal may be more of a focus. Buying an investment property also has tax benefits associated with negative gearing and can be less volatile than purchasing shares.
Ray White Toowoomba has several avenues to assist the investor. We have a specialised property management department which can keep you up to date with the current rental market and new investment opportunities. Our sales team is educated on what the rental market demands and can recommend suitable properties.
Ray White Toowoomba New Projects division which specializes in new property developments is another great service for investors. Here you have the opportunity to acquire new stock that is in high demand by the rental market.
Making an Offer
So you have found the property that includes the must haves of your wish list, what do you do next? Answer, you make an offer! In doing so it is important to understand the terms of a contract before signing and below is a brief overview of the key components.
At Ray White Toowoomba your real estate agent will mediate the negotiation process between yourself and the seller until terms can be agreed.
Contract Price and Deposit
The major terms of the contract include the price you agree to pay, the deposit amount and when it is payable. Under Queensland legislation the deposit amount may be up to 10% of the purchase price.
If you are unable to raise sufficient cash for the deposit a Deposit Bond may be used as a substitute.
This is the day the seller hands over transfer documents and the buyer pays the contract price. The date is normally set 30, 60 or 90 days after the contract date. At Ray White Toowoomba confirmation of settlement from both parties is required to release keys to the buyer and any deposit monies held in trust to the seller.
Even though the transfer takes place at settlement, the property is at the risk of the buyer from 5pm on the next business day from the contract date. Therefore it is very important to have the property insured immediately. When purchasing through Ray White Toowoomba you receive a cover note from Ray White Insurance for the first 30 days after registering with a simple phone call.
The two most common contract conditions are the finance condition and building and pest inspection condition. Should you require these conditions a due date to satisfy the conditions shall be agreed. Should you not receive an offer of finance or the building and pest report is not to your satisfaction the contract may be terminated without penalty. The seller must be notified of this prior to the due date otherwise the contract condition will be deemed accepted. Other special conditions to the contract may be added by agreement.
Cooling Off Period
From the day the buyer receives a fully signed contract the five working days cooling off period begins. This gives the buyer the right to terminate the contract for any reason, even an unconditional contract. A penalty of 0.25% of the purchase price may be levied by the seller.
This is a contract of sale without any conditions or a contract of sale where all conditions are met. The five day cooling off period still applies.
Buying at Auction
Remember that buying at the fall of the hammer on auction day produces a contract of sale without any conditions and without the five day cooling off period. Your finance needs to be pre-approved and building and pest inspections carried out prior to auction day. The Ray White Toowoomba marketing agent can provide you with a copy of the contract at any time during the auction campaign. Length of settlement can be extended and deposit amount lowered provided that the seller agrees.
Ray White Toowoomba is genuinely enthusiastic in providing you information and opportunity to purchase your next piece of our great city.