Gazumping Laws Is A Freightenting Situation And Shouldn't Happen!

Basically,  years ago you could  purchase a property for an agreed price of say $350,000, pay your holding deposit and then  the Real Estate/Home Owner gets a better offer of say $320,000 accepts that offer and refuses your offer of $300,000, refunds your money. 

Unless you have extra money to purchase towards and raise your bid the sale will through to the new owner, you would be refunded your holding deposit and this was on the basis that contracts were not signed. The better market value offered and 'Sold to the Highest Bidder, even after they agreed to a previous lower bidder's price. Once the 10 per cent deposit is paid and contracts are exchanged, this secures the price - not the holding deposit

The laws should change, so a buyer is not disadvantaged to  a possible gazumping dealing. The neither parties are compensated in  NSW for  any hardship caused. The backflip for for the seller could that  the highest bidders accepted price  may not be full funded to exchange contracts and then the  Real Estate Agent  is stuck  placing property on the market again.

A Suggestion is,'Once a holding deposit is paid a "Preliminary Contract of Sale Document" - should be signed by all parties concerned accepting the sale price, maximum time frame for settlement and confirming any further offers to be  supplied in writing. This will be provided prior to exchange of contract from the Agent/Seller.

The bonus on Auctions is Gazumping can not occur after Sale.

NSW Gazumping Laws 


 

 

Home Buyer Tricks In Purchasing Real Estate!

Well, this is quite simple. We understand that Real Estate Agents may use tricks to up the bid of a property, so why can't buyers do the same, to lower the bid?


It is quite funny, to think that buyers can play tricks to 'Lower the bid'. What made myself think this way? Quite simply reaction to an agent this weekend! This is in relating to a non-auctions:

So my suggestion is quite simple: have a family member or friend inspect the real estate and offer a bid the bid is higher than yours (they text you their result) and when you place your bid after theirs, check the reaction of the Real Estate Agent. Does he or she give you the facts that a high bid was placed or do they simply accept your bid to be accepted with others. 

If you get a negative response or non-response ask why they cannot provide an answer now and then put them into place with a new question, 'What amount would you and/or your client be prepared to accept today for selling property?'

If they have a higher bidder and it is your friend or family - you can offer just over to that bid by $50 upwards and say, this is your final offer and if not accepted now, walk out! Do not tell them that you know that friend/family at all!

It is a risk you take but the agent doesn't want to lose any business or reputation, so they will try to keep you interested. If not, then leave!

You are never guaranteed a purchased property until a finalised initial deposit is made! Don't have your heart set on this real estate, just have your mind set on a possible goal reaching bargain!

If You Have Saved A Lot - How Would You Deal With Purchasing Real Properties?

There are the few  buyers that have saved a lot of money and wonder how much deposit they should pay for the property.  

Well, this will depend on how your Pre-Approval Loan has been approved? That is, have you applied for 100% fully funded Home Loan or less? So, the general suggestion I have is whatever percentage of the  real estate home is funded and accepted, do it that way. The use your savings for  incidentals like moving in costs, household furniture (if needed), all your solicitors costs (paid in cash on settlement), immediately pay any stamp duty costs and any other necessary costs.

So for example, if a couple has saved $100,000 combined and after all above mentioned costs paid and  say they are left with $60,000, then  a suggested sum of $30,000 is directly deposited into the Home Loan - if the lending authority allows to do this. Then keep the left over balance of $30,000 remains keep it as a buffer, in case there are lifestyle changes that affect making repaying from combined  general income!

We will leave for you to decide!

Strata Property Buyers - Quenstion And Answer!

I haven't published a blog for a while on this blogspot, but today that will change. Although, I do not want to purchase a property I went to inspect a property for curiosity at 8/26 Hythe Street, Mount Druitt.

There was no left over profile of the property on a flyer left, as the Real Estate Agent, Adam Silva from Wiseberry Real Estate, Prospect brought 25 copies for the inspection and it had all been used up. This tells you that there are lots more potential buyers for the property then available properties, in the area I would assume. Maybe why Mount Druitt, is a "Hot Property Spot".

There was this young man who had been to other Strata Management Properties on the market and requested  to the agent a copy of the Strata Management Report. The agent responded in a clear and correct manner, 'They do not supply copy of Strata Management Reports as this is requested through the buyers solicitor, once the initial deposit is paid and  the solicitor will discuss the report with their client.'

This young gentleman advised that he was giving the same reports by other Real Estate Agents before, whilst inspecting these properties.  Apparently, this may be  legally an issue to supply this information on inspection.

From experience, I agree with Mr. Silva, agents are there to show the property to  potential customers,  Strata Management Report can be obtained from solicitors. There is a cost for the report to be released from the Strata Management as they will not release for the sake of releasing!

So keep this in mind when looking for Strata Management Property!

 
 

Check Out Median Prices Of Property!

So you are looking for a property in a suburb/town and you don't know what is the average price of property?

So what you do is you can just going property to proper a property, until you make a purchase and by then you know roughly what the median price is. The other way is check via internet search engines:  median house prices and type is the suburb your searching for.

How is this helpful? It helps you decide whether you will purchase over or under the market price and it sets your goals straight, knowing how much you might be looking for!

Here a result from realestate.com

Here is a Property Snapshot from realestate investar

Here is one from Investment property mag

There are many others that may make you pay for reports, not really required unless you really want to spend the money to do so. Reaching makes it easier for you if you need to understand the property market!

New Home Owners: Trick Of The Trade!

Although you are inspecting your new or first property, it may be daunting to see if all expectations have been met by yourself and/or partner. 

The hardest decision is placing property inspections by prioritizing them in order of likeness, choice and most importantly time of inspections, no matter if it is by auction sale or on the market

As you inspect the property, you will look for different things to question or  to even provide wonderful compliments. This depends on your own reaction (even before entering through the door). You may be making a life time decision, that can dramatically change your life. The important question to ask yourself will this be your lifetime house? Will you and/or your partner and any other families be happy living here.
  
The trick of the trade is not appear that this is the first house you have ever visited. If asked questions what other houses you've seen make you mention one that they may know is locally advertised.

I mean some Real Estate Agents may their tricks of the trade to make you sign on the dotted line. You have to have ready for line, 'Are you interested.....'

Land Tax On Investment Properties

Each State and or Territory has different laws. You will have to carefully check each one ( pending where the property is being purchased), to see if when purchasing investment properties, there are applicable Land Tax and  how do pay them as they are regulated by the State or Territory. 

Mostly your own house will be exempt, it is based on the Valuer Generals  valuation of you land only. You can then checkout if you are under/over the threshold. Over means you will have to pay yout Land Tax.

Click Here for NT Land Tax Details

Click Here for Vic Land Tax Details

Click Here for Qld Land Tax Details

Click here for NSW Land Tax Details

Click Here for ACT Land Tax Details

Click here for TAS Land Tax Details

Click Here for SA Land Tax Details

Click here for WA Land Tax Details