Tips & Hints

Tips and hints for increasing your properties value

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Tenant Information

Information for new and existing tenants, procedures and payments

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Tips and Hints


Glossary of terms to help you understand some of the buzz words used in Real Estate in Australia.

ACCEPTANCE

To agree to the terms and conditions of an offer or contract.

AGENT

A person or body who has authorisation to act on behalf of the client in the sale, purchase, letting or management of a property.

ASSIGN

To transfer

AUCTION

A public sale where the property is sold to the highest bidder “ on the condition the property reserve has been reached or exceeded. normally the highest bidder will be given the chance to negotiate with the seller. should the reserve not be reached.

BODY CORPORATE

The owners of the apartments/units within a building form a Body Corporate. These owners choose a council who are responsible for the maintenance of the building (which includes all the common areas). these people are tenants of the said building

BOND

When signing a Tenancy Agreement a bond needs to be paid by the Tenant to the Rental Bond Board (normally 4 weeks rent)

CAVEAT

A warning

CAPITAL GAINS

The financal gain that you receive when the asset is sold for a higher price than originally paid for it. normally linked to the CPI (Consumer Price Index)

CERTIFICATE OF TITLE

A document, which shows the following Ownership details, dimensions of the land, details of any mortgages and encumbrances (outstanding charge/liability on a property).

COMMON PROPERTY

Area which is owned by all the tenants of the strata property.

COMPANY TITLE

Unit Owners are shareholders in a private company. The agreement of the majority of shareholders is needed if you wish to lease or sell your property in the building.

CONTRACT OF SALE

A written agreement which details the terms and conditions regarding the sale or purchase of a particular property.

CONVEYANCE

Transferring the ownership of a property via the legal channels.

DEPOSIT

A deposit is required when purchasing a property (normally when you sign the Contract of Sale) 10% of the sale price is normally the figure required but can be negotiated.

EASEMENT

A burden on land, such as Right of way.

GAZUMPING

Where the seller agrees to the sale of the property but before the Contract of Sale is signed the property is sold to another interested party (normally at a higher price)

HOLDING DEPOSIT

A deposit paid to the vendor can be refundable if both parties agree (a goodwill gesture by the buyer)

LAND TAX

Annual tax paid to the State Government, calculated according to the value of the property. Your State Government will have current tax tables.

LEASE

A document which grants tenancy of a property. A specific period and terms and conditions will apply. Clauses can be included by either parties

LESSEE

A person (or legal entity) who leases a property.

LESSOR

The owner of a property who leases the property to another person (or legal entity).

MORTGAGE

A legal document containing the terms and conditions applied to the funds (money) leant to a person (or legal entity) for the purchase of property (real estate).

MORTGAGEE

The lender of the funds (money) to purchase the property.

MORTGAGOR

The person who borrows the funds (money) to purchase the property.

PASSED IN

A property will be passed in at Auction if it does not meet the Reserve price.

RESERVE PRICE

The reserve price is the amount, which is set by the vendor/seller of the property prior to the Auction. once the property meets the reserve price it will be sold to the highest bidder.

SETTLEMENT

A day is set for the settlement of the sale and the balance of the contract price is paid and ownership of the property then transfers from the seller to the buyer. this can be sometimes messy so it is best to arrange things well before.

STAMP DUTY ON THE MORTGAGE

A State Government tax applies to the full mortgage amount.

STAMP DUTY ON THE PROPERTY PRICE

A State Government tax applies to the property sale price

STRATA TITLE

The title gives you ownership of a unit, which you can either lease/sell at your own leasuire . Membership of the Body Corporate is automatic with this type of real property title.

TITLE SEARCH

System to ensure ownership of a property is legal and correct.

TITLE

Ownership, Right to ownership

TORRENS TITLE OR CERTIFICATE OF TITLE

System of recording ownership of a property. First introduced by Sir Robert Torrens

VENDOR

The party (seller) who offers the property for sale.

YIELD

Income which is gained from a property. The yield is normally expressed as a % of the value or cost of the investment attached.

Buyer hints

Things to bear in mind!

  • Research and choose your location
  • Building inspection, Pest Inspection, Strata records inspection fees
  • Legal Costs - includes a Solicitor to review the Contract For Sale documents includes :
  • Details of any existing mortgages on the property, Outgoings (Council rates etc) Planning Information,
  • Building Restrictions and Building Permits, Copy of the Title, plus any easements attached to the property some diagrams may be present like the sewage diagram
  • The stamp duty on transfer and stamp duty on mortgage a Government charge
  • Application or establishment fee, valuation fee, mortgage insurance costs
  • Relocation costs - removalists, connection fees, other unforseen costs

Tips when looking for a property

Location

  • Shortlist the suburbs you prefer
  • Bear in mind the distance to work and other amenities including schools, transport, shops, Doctors etc. .

Things to consider

  • Price
  • # bedrooms you require
  • Detached house, semi or apartment
  • Swimming Pool ( not a major decision but can save $ when purchased with property)
  • New house /renovated /development potential
  • One level or multi level

Selling Tips

Some steps to remember!

  • Arrange your finances - buy or invest or other?
  • Choose your solicitor!
  • Dissuss with your Solicitor the preparation of the Contract (Contract of Sale) and docs required.
  • Talk over the marketing Campaign needed to help sell your property
  • Prepare your property for the Open For Inspection days.
  • Once you have sold your property you will need to sort out your finances, legal obligations plus the move.

5 Star helpful hints

  • Clean windows and curtains are a must do!. let in as much light as possible
  • Baking bread 2 hours before open house leaves a nice aroma also, Baked cakes,Wood Polish,Flowers helps.
  • Allow for repairs on property and attend to them prior to sale.
  • Clean all your clutter and rubbish away clean out all untidy cuboards.
  • First impressions are important..Clean entrance, Clean street front are a must .
  • Make sure the streetscape and front entrance are tidy and clean.

Renting hints

Firstly decide in which area you would like to live, finance will dictate this.

Work out how much weekly rent you can afford + bond, there may be unseen charges payable upon the start of your agreement so bear this in mind. You may need references from your employer, and other persons . A holding deposit may be required, and it is good practice to attend open for inspections. always make a record before you move in on state of the property for your record and give property a good clean before moving in.

Things to keep in mind when looking for the property.

Location

  • Shortlist the suburbs you prefer
  • Bear in mind the distance to your work and other amenities including schools, transport, shops, Doctors etc.

Things to consider

  • Price
  • # bedrooms you require
  • Detached house, semi or apartment
  • Swimming Pool ( not a major decision but can save $ when purchased with property)
  • New house /renovated /development potential
  • One level or multi level