It pays to be prepared when you are thinking of buying a property. Sometimes it can take several months to find something suitable, and then you may be competing against other interested parties for the same property. By having the following items prepared, you will be able to act quickly with an easy and stress free purchase.
1. Decide on a solicitor
You will need to decide on a legal representative. Just like all service industries, some legal firms are more helpful and more efficient than others. Ask your friends or business associates for their recommendation. It is possible to use a discount conveyancing company that only does property transfers, but often they do not have the expertise for commercial or industrial purchases.
Our office can supply you with a short list of recommended solicitors.
2. Decide on the buying entity, and register for GST
You will need to decide who is to be the buyer. Will you be buying in a company name, a family trust, a superannuation fund or personal names? There are major tax implications depending on which structure you decide to use. Personal names are often the best, but even then, you will still need to be registered for GST in most cases to claim a refund of any GST you might have to pay on the purchase price. Make sure you have spoken with your accountant to discuss all the issues, and have your ABN ready. Sometimes this can take weeks.
3. Decide on finance – and don’t just rely on your bank
You will need to decide on your borrowings, and this too is a major decision. The good old days of just relying on your bank may not be the best option. There are some excellent packages available these days. Did you know that some of the larger public Super Funds are now lending money at better rates and terms than the banks? Speak to at least one broker before you agree to anything. You are certain to save many thousands of dollars.
We have a very experienced and professional finance broker working with our office. Please give us a call if you would like to speak with him.
4. The Buying Process
Once you have decided on the property, the purchase process can begin –
- Negotiate the price and terms until all parties are agreed.
- Provide your purchase and solicitor details to the agent. He may have a contract to give you immediately, or he may arrange to have one sent to your solicitor.
- Your solicitor will check that all is in order, ask you to sign the contract in his office, and to pay a 10% deposit.
- When you have signed your contract, and the vendor has signed his contract, the two contracts are “exchanged”. Both parties are then legally committed.
- Your solicitor will advise you of the expected date of settlement. It usually takes about 6 weeks to complete the legal work, and the balance of the purchase price is then paid.
- On the day of settlement, contact the agent and make a time to collect the keys from his office.
- Congratulations. It’s yours.