Legal Ways to Save in Today’s Uncertain Property Market.
We are all aware of the ups and downs of the property market. Currently a drop in property prices is predicted, and has been seen in many suburbs. When predictions of a fall in property prices were surfacing, one can only wonder if this was a self-fulfilling prophecy fuelled by a change in attitude.As a seller, perhaps one should stand fast to their price, unless the need to sell is pressing. I would expect that many investors are holding onto their properties. The decrease in supply slowing the fall in property prices.
But if you are buying or selling in today’s market, how can you save a little money? Or not lose quite so much in today’s market.Photo by rawpixel.com on Pexels.com
Is that a thing? Yes, in theory you can do your own conveyancing. And there is a lot of information available to help you through the process. Chances are the other party to the transaction will know what they are doing and push you to take the steps that you need to do.
Most transfers are done electronically through Pexa, and there are settlement agents who can transact for you through this platform, such as LodgeX, at a fee of course, while you do all the grunge work.
The quest then is should you do the Conveyancing yourself, and the answer is probably not. You don’t know what you don’t know. Mistakes can be costly. If you outsource your conveyancing, it can be done by a Solicitor or a Registered Conveyancer. Many assume that using a Conveyancer is cheaper than a solicitor, but usually not so. I would recommend a Solicitor because they know conveyancing and property law, but also family law and Wills and Estates which may be impacted by a property transaction.
Be ready, willing and able to settle.
Property investors often get themselves into strife by not having everything in order and on time. Penalties for failing to settle a property purchase or sale can lead to huge penalties, high interest charges, massive legal expenses or the loss of the deposit.
Know what you need to do, and when you need to do it, before signing any contract, to avoid unnecessary losses. And make a note in your diary of all your deadlines.
Non-traditional Selling Agents
There are mare options than ever before. You can list your property yourself, with help from websites such as BuyMyPlace, who assist you with the legalities and advertising of your property. How effective this option is open for debate? Their website claims that the average Vendor can save $21,000 in agents commission. That’s a lot of money.
The advantage of selling your property yourself, apart from the large savings, is that you know your property and area better than an agent. You can sell how to make a home in your property. However, the agent may be better suited to negotiating a higher price for you.
There are also fixed costs agents, such a Purple Bricks who generally charge less than regular agents. Check out the reviews online, or anyone who has sold through such an agency to see if they have a good track record in your area.
One way to ensure that you are getting what your property is worth is to obtain a valuation of your property. There are many resources online such as through RPData, or through your bank, or even valuers, who can provide you with an indication of what your property is worth, so that you can negotiate with greater confidence.Whichever option you choose, do take the time to read the contract carefully, and ask lots of questions before signing up with any agent or service. You’ be surprised how many people just sign then find themselves in difficulty later. Perhaps the number of lawyers at Mercedes dealerships can provide an indication.
Brokering your own mortgage
Do your own homework when it comes to securing finance to buy a property. Compare ALL the finance providers extensively and consider moving away from the big banks. The smaller banks are quite competitive. And consider if there is a finance provider particular to the industry within which you work, who may provide discounts on interest charges. If you can save for a higher deposit, all the better, and the more attractive you are to a finance provider.
Stamp Duty savings
There are a number of grants and concessions available, such as pensioner concessions, First home owner grants, off the plan Concessions. It is well worth trying to save here if you can, as stamp duty can be between 5% to 6% of the purchase price. Consult the State Revenue Office website to see what you may be eligible for and plan your purchase with this in mind.
Buy small and renovate
You could also buy just the land or a distressed property in need of renovation. You will save on stamp duty and financing costs while being able to fix the place up over time to your own liking. You will also not be putting as much into a single asset and therefore hedge your bets a little to ride out the current storm.
The aforesaid is not legal advice and is only general in nature. Please obtain advice specific to your own circumstances, alternatively get in touch with the writer at HazeLegal. Please note that we do not endorse any of the services mentioned in this article, they merely serve as an example.