Advice for Buyers
Create a wish listYour needs will influence where and what you buy. Therefore it is a good idea to start with a wish 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 Coolangatta recommend selecting 2-3 'Must haves' on your list ie. your highest priority in looking for a home. For example, if you are an investor the rental yield and maintenance of a property may be your top concerns. Research the market place
Seek advice from your Ray White Coolangatta agent, they can provide comparable sales in the area. The internet is another good source for information, reports and statistics and can be done conveniently from your own home. Drive around the area, visit open homes and attend auctions to see what is happening in the market place.
Where to find a property
Ray White Coolangatta advertise every week in the Friday Gold Coast Daily News. Our properties are also on display in our office window and property guides.
A convenient method is to subscribe to automatic listing updates, which email you new listings as they hit the market.
Be financially prepared
Many buyers begin looking for a property without even knowing what they can afford to spend. This can be a big mistake, for many buyers end up disappointed when having found their dream home only to find that they do not have the borrowing capacity to purchase it.
On the other hand, buyers can restrict themselves to a certain price without knowing that their real borrowing capacity could fulfil more from their wish list. Ray White Coolangatta recommends that buyers seek financial advice from a lending institution or mortgage broker to determine their borrowing capacity.
Ray White Financial Services can assist you and save you time.
Buying as an investor
Buying an investment property is different to buying as an owner occupier. Your decision will not be based on emotion but things like rental yield, body corporate fees of unit purchasers and how attractive it is to the rental market. Buying an investment property also has tax benefits associated with negative gearing and can be less volatile than purchasing shares.
Making an offer
So you have found the property that includes the must haves on your 'wish list', what do you do next? Answer, you make an offer! In doing so it is important to understand the terms of the contract before signing and below is a brief discussion of the main points that you will need to know.
At Ray White Coolangatta your real estate agent will mediate the negotiation process between yourself and the vendor until terms can be agreed.
Contract Price and Deposit - the main terms of the contract are the price you agree to pay, the deposit amount and when it is payable.
Deposit Bonds - if you do not possess enough cash deposit a Deposit Power Bond can be used as a substitute.
Settlement Date - 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 Coolangatta confirmation of settlement from both parties is required to release keys to the buyer and any deposit monies held in trust to the seller.
Buyer Risk - even though the transfer takes place at settlement the property is at risk of the buyer from 5pm the next business day from the contract date. Therefore it is important to have the property insured immediately. When purchasing through Ray White Coolangatta you automatically receive a cover note from Ray White Insurance for the first 30 days.
Conditions - the 2 most common conditions of a contract are the finance clause and building and pest inspection clause. Should you require these to be conditions of your contract you will be given a due date to meet the conditions. Should you not receive finance or the building and pest report is not to your satisfaction you may terminate the contract without penalty. However the other party must be notified otherwise the contract condition will be deemed accepted. Other special conditions can be written into the contract.
Buying at Auction
Remember that buying on auction day the contract of sale is without any conditions and without the 5 day cooling off period. So have your finance pre-approved and building and pest inspections carried out prior to auction day. The Ray White Coolangatta 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 owners agree.