Select Conveyancing

2020 has seen many people decide they want a lifestyle change. This has meant selling up and moving for a tree change or seachange. Plus there has been an influx of first home buyers into the market. So even with a pandemic, there has been considerable movement in the real estate market.

House prices, particularly in Sydney, have remained strong despite all the challenges of 2020.

What does it cost to sell your home?

Real Estate Agent – Generally between 1% and 2% of the sale price.

Remember that the lowest price (commission) is not always the best. As in any transaction do your research and choose someone with proven results and local knowledge.

Marketing – From $5000 to $8000 and includes photography, floor plans, advertising, street sign etc.

Presenting your property in the best way possible will help to ensure that you receive the maximum sale price. Walkthrough videos have become popular as they provide a first-hand view without having to do a property inspection.

Home staging – From $2000 to $4000 depending on the size of the home.

Staging your home for sale can help you to gain a better sale price. It sets your home in the best possible light for people to be able to imagine themselves living there without any of your personal items to distract them.

Auctioneer – Generally $1000 or it may be included if the agent has an inhouse auctioneer.

Renovations or repairs – Variable, depending on what you decide you would like to complete prior to listing your property.

This may be a fresh coat of paint throughout, a garden tidy and always a mown lawn.

Conveyancing – $1500 to $2000 – Contact us for a specific price for your circumstances.

Capital Gains Tax – Dependant on the property owners situation and the time they have owned the property.

Moving costs – $500 to $2000 depending on the size/contents of your home and where you are moving.

Mortgage fees – Varies from lender to lender and is generally $300 to $400

Naturally, these rates are all an example of what you can expect to pay. With everyone’s circumstances, properties and locations different these prices will vary. Take the time to seek out professionals and do your research.

For all your conveyancing needs contact the team at Select Conveyancing Lane Cove. 

 

NSW plans to phase out stamp duty – what this could mean for you

Depending on your circumstances there are various outcomes for this proposed change to stamp duty in NSW.

In simple terms, buyers of property in NSW will be given two options:

• To pay their stamp duty at the time of purchase.
• Or to pay it as an annual property tax which remains for the future of the new and any future homeowners.

Depending on circumstances

You currently have a property – There is no change and you will not have to pay any more tax as you will have paid at the time of purchase.

Planning to buy your first home – Under the proposed changes and if eligible, you will have access to the first home buyers grant. Plus the choice to pay a one-off stamp duty or have an annual property tax bill.

Planning to buy your next home – Under the proposed changes you will be given two options. To pay your stamp duty upfront (one-off) or have an annual property tax bill. Note that will Sydney house prices the annual property tax could be $5000 per year.

Investing in property – Investors will be given the choice to pay stamp duty and land tax upfront or an annual property tax.

The time you are planning to stay in the home

When calculating your options you should think about the amount of time that you will be planning to spend in the home. Under the proposed changes if it is longer than 7-10 years it will be cheaper to pay your stamp duty upfront.

Conclusion

It is important to note that these choices will affect the property. Once the choice is an annual property tax, that choice will stay with the property for its life. So as discussed and depending on your circumstances there are various outcomes for NSW plans to phase out stamp duty.

The team at Select Conveyancing will be here for you if these proposed changes come into effect. Contact us about your next property sale or purchase.  

 

Are you hoping to buy or build your first home? The NSW Government is offering a grant and assistance with the transfer duty for first home buyers.

New homes

If you are buying or building a new home you may be eligible for $10,000 under the first homeowner’s scheme.

You may be eligible if:

• Your newly constructed home is valued at less than $600,000
• The land and dwelling you intend to build has a combined value of less than $750,000

Eligibility:

• You are an individual (not a company or trust) over 18 years of age
• You or the person you are buying with is an Australian citizen or permanent resident
• You or the person you are buying with has not owned or co-owned property in Australia or previously received the first home owners grant in Australia.

The application is done through your bank or home loan broker. Read about first home buyer compliance

Homebuilder program

If you are building a new home you may also be eligible for the Australian government grant of $25,000.

You may be eligible if:

• You sign a contract between 4th June 2020 and 31st December 2020
• Commence building within 3months of the contract date

Read about the Homebuilder program

The first home buyer assistance scheme

In addition there is a whole range of threshold changes from 1st August 2020. Within this, you may be eligible to apply for an exemption or a reduction of duty charges. First home buyer eligibility remains the same as above.

This assistance scheme applies to first home buyers:

• buying an existing home
• buying a new home
• buying vacant land on which you intend to build a home.

For homes or vacant land bought between 1 July 2017 and 31 July 2020, you can apply for a full exemption if:

• the value of your new or existing home is less than $650,000, or
• the value of your block of land is less than $350,000.

You can apply for a concession if:

• the value of your new or existing home is between $650,000 and $800,000, or
• the value of your block of land is between $350,000 and $450,000.

If you buy a home or vacant land between 1 August 2020 and 31 July 2021 you can apply for a full exemption if:

• the value of your new home is less than $800,000, or
• the value of your existing home is less than $650,000, or
• the value of your block of land is less than $400,000.

You can apply for a concession if:

• the value of your new home is between $800,000 and $1 million, or
• the value of your existing home is between $650,000 and $800,000, or
• the value of your block of land is between $400,000 and $500,000.

You must have already exchanged contracts to purchase your first home or vacant land.

If you are curious about your eligibility speak with us about the First Home Buyers Assistance scheme.

Information supplied from NSW Government First Home Buyer and Grant Assistance website on the day of publishing 27th October 2020.

Buying and selling a property can be an expensive exercise and it is not something you want to get wrong. Both buyers and sellers want the process to be smooth, correct and without any hiccups.

Conveyancing is the legal work involved in preparing the sales contract, mortgage details and other related documents to complete a property sale. 

Who can do conveyancing work

• A licensed conveyancer
• A solicitor
• Yourself

So the simple answer to ‘can I do my own conveyancing’ is yes you can.

Risks of DIY conveyancing

The choice of DIY conveyancing seems like a good way to save some money at a time when it seems that you have money going in several directions. However, there are MANY risks involved, here are a few to consider.

Fines or contract breach – Ultimate you are paying a conveyance for their training, skills and experience to manage the process from beginning to end. This includes handling any curveballs that may be thrown into the mix. These curveballs can potentially cost you thousands more than if you used a licensed conveyancer for your transaction.

The process takes longer than expected – You may spend 10, 20 or even more hours working on your property settlement. How much do you earn per hour doing your job? Potentially it is a false economy to try to do this process yourself.

Panic sets in – Remember that a conveyancer is there to perform a number of tasks on your behalf.

• Reviewing the contract for potential errors or red flags which you may miss
• Conducting legal searches
• Liaising with the other parties within the transaction

Plus included in your fee is advice and guidance if an unexpected issue pops up. They have the experience and knowledge to deal with any challenging situations. Not to mention they also have insurance to protect you if something really goes wrong.

Conclusion

Legislation, trends and insurance are all changing regularly and if you are not experienced in these areas DIY conveyancing is a risky business. For the sake of saving a few hundred dollars is it going to be worth the risks involved which could end up costing you thousands or even tens of thousands.

Contact the team at Select Conveyancing Lane Cove to have peace of mind with your next property settlement.

 

If you own or are considering buying a unit, townhouse or villa, chances are that it will be administered by a strata title or a company title.

Prior to the 1960s, it was standard for units to be bought and sold within a company title. It allowed people to buy a unit rather than a house and provide for separate shares of the space within the one property. These shares give you exclusive use and occupation of the unit. It is however increasingly rare as most buildings convert to strata title due to the many benefits it offers.

Strata title was introduced in the 1960s to give legal ownership of a portion of the building. It is suitable for both residential and commercial properties.

Naturally, both strata and company titles are legally different. They come with their own list of pros and cons which also varies from state to state. It is vital that you gain advice as to the financial and legal implications of owning either type of property.

Strata Title

Cons

• Owners are required to pay quarterly levies to manage, insure and maintain the property, vote at AGM’s and abide by any bylaws (not really a negative but it is something to consider).

Pros

• It is a trusted, fair and transparent system used by almost all buildings.
• Owners get an equal vote on large decisions.
• There is a clear surveyed diagram showing which parts of the property are common areas and which are owned by individuals.
• Properties under a strata title are generally worth 10% to 20% more than properties under a company title.

Company Title

Cons

• It can sometimes be difficult to borrow to purchase a company title property with some lenders requesting a larger deposit to buy. This then lowers the risk to the bank on the property value.
• Owners don’t own the property title, instead, they own a share in a company that owns the title.
• They can be slower to sell than strata title properties.
• Company constitutions can limit who can buy into the property if the property can be rented out and even what changes can be made.

Pros

• Investors may make money if purchasing and later the company title is changes to a strata title, adding instant value.
• Properties can be cheaper to buy.

There is also another option – Stratum Title – This is a combination of both of the above with the owners having a property title and a company owning the common property.

Select Conveyancing Lane Cove is here to help you every step of the way with your property purchase or sale. Contact us today to discuss your needs. 

In our last blog, we wrote about a certificate of title is and the security features of this title.

As part of buying a property, your conveyancer will complete a title search of the property you are looking at purchasing. This title search will reveal key information about the property so that you can make an educated decision about the purchase.

A title search shows

Who owns the land – Your search results will include the name of all landowners. On the occasion that there is more than one owner, it will show the type of ownership. This may be tenants in common or joint tenants.

If there are easements – Should your property show an easement, this is a right of way given to another who does not own the property. This right of way gives permission to use the property for a specific purpose. Or it may be for service access allowing workers to access drainage in your backyard. Having an easement can restrict your use of the land and may prevent you from building in that area so it’s important that you’re aware of them before you buy.

If there are caveats on the property – A caveat shows that someone else has an interest in the property. If someone has a potential claim to part or all of a property, they may lodge a caveat, which prevents the owner from selling their property clear and free. A builder may put a caveat on a property if the owner owes them money.

If there are covenants – A covenant is a guideline or restriction on the land that can limit what can be built on it. It may also restrict where it can be built and from what materials it can be built with.

If there are mortgages on the property – When there is a mortgage on the property, the bank holds the Certificate of Title, rather than the property owner or a solicitor. The mortgage provider will be listed on the title. As part of buying and selling property, any mortgage will generally be discharged at the property settlement.

Should you have any questions about performing a title search on a property or your conveyancing requirements, please contact Select Conveyancing. 

A Certificate of Title is the official ownership of a property and is issued by the Registrar of Titles in NSW. 

A Certificate of Title is a copy of the related folio of the Torrens Land Title Register that is issued by Land and Property Information (LPI) to the registered proprietor, mortgagee or chargee. A current edition of a Certificate of Title will normally detail title information including the name/s of the owner/s, the lot/plan numbers and other registered interests on the title such as mortgages, easements and covenants. Source: NSW Government Land and Property information.

If you do not have a mortgage on your property you may have this paper in your possession. When it comes to selling your unmortgaged property you will need to provide the Certificate of Title as proof of your ownership. Without this certificate, you will not be able to sell your property.

Do you know where your Certificate of Title is?

Has it been lost or are its whereabouts are unknown? The application of a replacement can take some time so it is wise to do this early in the selling process so that when you have a buyer your property can settle with ease.

Security features

Since 4th January 2004, there has been the introduction of security features within every certificate issued.

Security features were introduced due to an increase in identity fraud. Due to the availability of scanning and printing technology it has made it very easy for people to fraudulently produce many different types of documents. This includes Certificates of Title.

Certificates of Title produced prior to 4th January 2004 do not include security features. Additional measures need to be taken to verify the identity of people who have possession of a Certificate of Title prior to this date.

The security features include and vary throughout the years since 2004:

• Security trust seal
• Certificate Authentication code
• Fine line pattern
• Two barcodes
• End of certificate noted
• Certificate of Title printed on the side in brown
• Specifications of 120gsm paper
• Watermark
• Sequential numbering
• NSW state emblem
• Microprinting
• Silver seal
• Background printing

If you have any questions about your Certificate of Title please contact Nicola at Select Conveyancing Lane Cove. 

There is no doubt that the real estate market has been affected in 2020. Covid-19 has seen real estate move to online Auctions, For Sale only negotiations and property inspections by appointment only.

While restrictions are easing and home inspections are beginning again housing prices and rental prices are feeling the pinch. There are many factors that affect house prices and you may be able to get a great purchase in 2020. If you are selling you may still be able to sell for a great price depending on your property, price and its location.

Can you buy

If you have job security and a preapproved mortgage during this time you may be in a great position to buy. In the short-term, the property market has lost a little momentum. Prices have stalled and potentially dropped in some areas.

The economy too has seen a negative impact including employment in many areas. This impact is affecting the rental market as many people cannot afford their rent and landlords have had to bear a significant drop in their income.

If you are looking to buy an investment property, prices may be good but your rental potential may not be as you would expect.

While looking to buy you may also notice less competition as many buyers have been taken out of the housing market search due to their job insecurity.

Do you have to sell

2020 may not be the best year to try to sell your property. The market is weaker than in 2019 and it will again strengthen in 2021 so if you can postpone selling this may be a wise choice. However, as mentioned above you may have a property that is not too adversely affected by this market. Or you may have no choice but to sell and work hard to get the best price for your property. Make sure you gain great advice and do your research to ensure that you are in the best position based on your circumstances.

Across Australia

Every state and suburb is being affected differently during this time. Make sure you do your research and property checks via your conveyancer as normal. Not doing these checks and purchasing with the thought that you are getting a bargain could show up with dire consequences. Now maybe a good time to buy but it is not a good time to cut any corners.

For all your conveyancing needs contact Select Conveyancing Lane Cove.

While we are within the current COVID-19 restrictions property selling and buying is a little different.

• No in-person auctions
• No open house group inspections

While these changes make the landscape a little different you can still arrange private inspections and private sales. There are positives to these changes and we can adapt to this new way of doing things for the time being.

Here are some tips:

Continue to shop around – While there may not be as many properties listed you still need to know what the marketplace is doing in your chosen area. Do your research and make sure you are knowledgable on reality. Don’t just focus on what you feel like is the correct price for a property.

Arrange an inspection – You’ve seen a property that interests you and you want a closer look. Contact the agent and arrange a private inspection of the property. Utilising your knowledge you will be able to determine both if the property is suitable and how much you would like to offer. Make sure to ask:

• Why is the property being sold
• Is the seller in a rush to sell
• Are other people interested in the property, how many and are they, owners or investors
• What price are the sellers hoping for

How are the offers going to work – Ask the agent for the property how they are going to process any offers with the property owners. Confirm these details with your conveyancer.

Making an offer – Find out if there have been other offers which may have been turned down. If you are very keen to buy make sure you don’t make an offer that is too low, insulting or one that may be too low for the seller. Remember that there may be another buyer ready to pay more and if you waste time you may miss out altogether.

Ensure you are ready – If you do make an offer, you need to be ready to proceed with a deposit and your finance in place.

Conclusion – If you have any questions, please contact Nicola at Select Conveyancing.

Searching for a property and finding the right property is an exhausting task.

Putting in an offer is a nerve-wracking exercise and waiting for your offer to be accepted or countered seems to take forever. Know that the first offer you make is not necessarily going to be accepted. It may take a few negotiations back and forth before you reach a resolution.

How much to offer

Do your research thoroughly on both what the property is worth and what your upper limit is to secure the property. Remember that you may not be the only one submitting an offer. If you really want the property you should submit your best price and try not to insult the owner with an extremely low offer. The owner has the choice of who they wish to sell to and insulting people may mean that they reject you completely.

Speak to the real estate agent about the interest in the property, however, remember that they are working for the seller and not for you. They want their owner to get the best price so they have a happy client.

Speak to your Conveyancer

When you make an offer on a property it has the possibility of becoming legally binding. If you have made the offer in writing via a signed contract of sale and the seller agrees and signs it, the property is sold. You need your conveyancer to ensure that everything is going to proceed legally and correctly. They can ensure the contract has everything detailed correctly and there are no surprises.

Conditional or Unconditional

Sales can be conditional to finance or inspections or they can be unconditional, without any conditions. Generally unconditional is more attractive to a seller as they know that the sale will not fall through without penalty against the buyer. Note: If an unconditional offer does fall through you will likely forfeit your deposit to the seller. Making an unconditional offer may see your offer accepted over a higher but conditional offer on a property.

Conclusion

Making an offer on a property is not difficult and it can be far easier than the stress of an auction. Good luck with finding your perfect property.

Contact Select Conveyancing when you are buying your next property.