Purchase of residential property is an important investment decision and should be carefully planned prior to any purchases being made. With current national and state housing market conditions being tight and record low interest rates predicted to remain unchanging over time, an in-depth research plan on your prospective purchases should be paramount.
One of the key decisions when purchasing real estate is choosing a type that best matches your lifestyle and long-term goals. There are various considerations, including location, whether or not a new or established home will suit you and preferred methods of purchase.
As a first-home buyer, there may be government incentives such as stamp duty concessions and grants you should consider. Furthermore, buying off-plan (typical of house and land packages) may reduce upfront costs by eliminating capital gains tax when selling later.
As with any investment decision, whether to purchase established or new properties is ultimately determined by your budget, timeline and risk profile. New builds tend to come with higher upfront costs but lower ongoing maintenance and energy bills while they could also qualify for government incentives such as stamp duty exemptions or builder warranties.
Legal fees and settlement expenses should also be factored into your calculations when purchasing property, with those costs determined based on its nature and quoted hourly by your conveyancer. During negotiations, it’s a good idea to inquire as to how these additional expenses might erode your purchasing power.
Once contracts of sale have been exchanged, final preparations for settlement can begin. Your conveyancer will assist in this process that typically lasts 30 to 90 business days depending on what checks need to be conducted.
At settlement, you’ll need to give the bank a deposit cheque, sign the transfer documents, and give over keys for your new property. Your lawyer will oversee this process – although not legally obliged, attending settlement is strongly advised as it provides you with peace of mind that things go smoothly.
As part of purchasing property in Queensland, there are additional costs such as council rates and land tax to take into account when making the investment decision. You can learn more by consulting the Queensland Government calculators as well as speaking to your local LJ Hooker real estate office. As part of any property purchase decision, it is wise to request a building and pest inspection report in order to ensure its soundness and to help ensure a profitable resell in the future. Assuring you do this correctly when purchasing at auction is especially crucial given there is no cooling off period and the vendor hasn’t conducted their own pest or building inspections. Also keep in mind if the property will not be your main residence as annual land tax may apply.