Jesse Mason, Conveyancing Manager at Rouse Lawyers shares his 5 essential tips to ensure a smooth transaction when purchasing a property for investment.
“Second only to purchasing your own home, buying an investment property may be one of the most significant financial decisions you will ever make.”
Once you’ve taken the leap and decided on an investment property, here are 5 things you can do to make sure the purchase runs smoothly:
- Check the Contract
It is extremely important that you know your rights under the Contract, including all of the critical dates and special conditions. We normally suggest inserting building and pest, finance and due diligence conditions into the Contract, to enable you to have sufficient time to ensure you are completely satisfied with your purchase. The usual time you have to satisfy these conditions is 7 – 14 days. The most prudent approach is to have your Conveyancer check the Contract before you sign.
- Talk to your Broker or Bank
Ideally, you should talk to your bank or mortgage broker before you start looking for a property. This will give you an idea of your borrowing capacity and purchase price range. Once you sign the Contract, provide a copy to your bank or broker immediately so they can start the finance approval process. This usually involves a valuation of the property and you meeting and satisfying other loan conditions.
- Book Building & Pest
If you are purchasing an existing property, it is important to arrange for a building and pest inspection to occur. You need to know exactly what you are buying and identify if there are any issues with the property you are purchasing.
Is there a pool on the property? If so, ask your agent if a Pool Safety Certificate has been issued. If there isn’t a Pool Safety Certificate, the onus may be on you under the Contract to obtain one.
If your Contract is subject to Due Diligence, we suggest researching Council records and obtaining information of current building approvals. If applicable, you can also investigate the body corporate records and peruse minutes of recent meetings and the current and proposed future budgets.
If any issues are identified during this stage, there are a number of options available if you are not satisfied with your enquires, but you must liaise with your Conveyancer and act within the time frame provided in the Contract.
- Remember, Time is of the Essence
With all Queensland Contracts, time is of the essence. This means the time limits and deadlines specified in the Contract must be met in order for the Contract to stay afoot. If you are unable to meet a deadline, and an agreement to extend the deadline is not reached, the Contract could be terminated. A good Conveyancer will keep you informed of these critical dates.
- Keep in touch!
It is important that your Conveyancer is only ever a phone call away. If something changes on your end, pick up the phone or send them an email. It assists us greatly when our clients are communicative, available by phone or email and responsive – it is extremely important to us that our clients’ sales and purchases run smoothly, and settle on time.
Buying a property is a very exciting time, but things can go wrong. Rouse Lawyers’ experienced Conveyancing team is backed by Senior Property Lawyers, and we work together to ensure problems are solved quickly.
If you have any questions, or would like to know more about our fixed-fee Conveyancing services, please contact our team on 07 3648 9900 or www.rouselawyers.com.au