Buying a Property For Dummies:

Description

Take the stress out of buying a property with this handy guide that covers everything you need to know! Are you a first-time buyer? Or perhaps you’re looking to move on and up in today’s competitive property market? If you feel overwhelmed by the jargon, the unsolicited advice, and the complicated finances, you’re not alone. So how can you be confident you’re ticking all the right boxes? With Buying a Property For Dummies! This straightforward, step-by-step guide will help you get the best deal on your new house, apartment or investment property. Learn about different types of residential properties and different buying strategiesCalculate the costs ahead of you and understand how your mortgage will workLearn how to value a property, negotiate, and make a successful bid or offerGet tips on when and where to seek expert help There’s no denying that buying property can be stressful. But with Buying a Property For Dummies, you can sleep easy. This clear, practical handbook will ensure you’re making the right moves to realise your property dream sooner―and that new your property is a sound investment for your future! Title Page Copyright Page Table of Contents Introduction About This Book Foolish Assumptions Icons Used in This Book Where to Go from Here Chapter 1 Getting Ready to Buy Real Estate Purchasing Residential Properties Freestanding houses Attached housing Apartments and units Townhouses Deciding among the options Using Your Home as a Base for Investing Why tax makes ‘home’ and ‘investment’ different Buying a place of your own Converting your home to a rental Considering Rentvesting Chapter 2 Understanding Buying Strategies Buying Property Strategies Private treaty sales Public auctions Tenders Taking Advantage of Off-Market Sales Chapter 3 Finding Your Expert Team Establishing Your Team Early Getting Good Legal Advice Choosing your solicitor Solicitors versus conveyancers Lining Up a Lender or Mortgage Broker Reviewing roles Building relationships Adding an Accountant Inspecting with a Building Expert Working with Real Estate Professionals to Buy and Sell Property Understanding what agents do On the lookout: Buyers’ agents and QPIAs Understanding the advantages of buyers’ agents Considering the costs of buyers’ agents Chapter 4 Financing Your Property Purchase Calculating the Costs of Entry Determining what you need to get started Don’t forget stamp duty Overcoming deposit limitations Rounding Up the Required Cash Make saving a habit Tap into other cash sources Primary Sources of Finance: Lenders Big and Small Banks Building societies and credit unions Non-bank lenders Chapter 5 Understanding Mortgages Taking a Look at Mortgages Going with the flow: Variable-rate mortgages Standard variable rates Discount variable rates and ‘no frills’ loans Honeymoon rates Average annual percentage rates The security of fixed-rate mortgages Tax-effective interest-only loans Making a dent with principal and interest loans Making Some Decisions Deciding between variable and fixed Deciding between interest-only and principal and interest Deciding on a loan term Sizing Up Banking Products Interest rates: Is cheaper always better? Merging your home and investment finances Chapter 6 Working Out the Ongoing Costs of Real Estate Budgeting for the Inevitable Mortgage interest — month in, month out Financing unpredictable maintenance issues Real estate agent management of maintenance costs Funding major maintenance issues Body corporate fees Ongoing Property Taxes Council rates Land tax Other Costs to Be Aware Of Utility charges Agents’ fees Property improvements Insurance Chapter 7 Evaluating Property and Making an Offer Valuation: Working Out How Much to Pay Market data (sales-comparison) approach Cost approach Calculating a yield-based return Finding properties where you can add value Negotiating Basics Selecting negotiating styles Building your knowledge base Do your homework Figure out the seller’s motivations Bring your data to the table Assembling attractive and realistic offers Factoring in fix-up costs Creatively meeting the seller’s price Making Your Offer Understanding the basics of contracts Completing the contract of sale Paying the deposit Setting the settlement date Using conditions effectively Ironing out other issues Determining How to Hold Title Sole ownership Joint tenancy Tenants in common Chapter 8 Getting Your Head Around the Legal Requirements Offer Accepted! Setting a settlement date Hi ho, off to the lawyers you go Conveyancers’ duties Removing conditions Conducting Formal Due Diligence Reviewing the records for larger deals Inspecting the property Caveat emptor Types of inspections Building inspections Pest control and property damage Qualifying the inspectors Using the Settlement Period Wisely Taking control at settlement Insuring the property Preparing for tenants Balancing at settlement Pre-settlement inspections Taking ownership Chapter 9 Ten (Okay, Six) Signs You’re About to be Stung by a Spruiker Not disclosing kickbacks or commissions Offering discounts for signing contracts immediately Using pressure tactics Running free seminars that come with hard sells Not following the same investment strategy Using the cut-and-run approach Index EULA