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Buying and selling tips

General tips for buying and selling residential property

• Do plenty of research in the area you want to buy in. Check sales prices and make sure you know what's for sale and how long it's been on the market.
• Buy what you need, spend comfortably within your financial capabilities so you can still enjoy your life.
• One way to minimise your added costs is to make sure you have 20 per cent of the purchase price because then lenders mortgage insurance won't be required.
• Solicitor's fees are negotiable and it's advisable to compare the fees being charged by a few different solicitors.
• Good referrals and past experience is valuable when choosing your legal representative.
• While you can do conveyancing on your own, using qualified solicitors to do it for you is recommended.
• Don't become too heavily geared, never borrow more than the valuation recommendation.
• Spend time and money assessing returns and yields - research the rental history or potential rent return and base calculations on at least a five-year and more likely 10-year term.
• Even though you'll have to outlay money to have a tax depreciation schedule drawn up, it's a good idea to have one to help you maximise the tax benefits of owning an investment property.

• Choose only Real Estate Institute member agents and obtain two or three written market appraisals before you make a decision.
• Ask for the sales representative or estate agent's credentials and selling history, experience and qualifications.
• Shop around for an agent whose fee structure and level of service meets your expectations and budget. Cheaper isn't necessarily better and as with anything else, you get what you pay for.
• An agent shouldn't be chosen based solely on price, you should also take into account factors including the extent of the services provided, the complexity of marketing and the difficulty of sale.
• Always ask if the GST and advertising costs of the sales and marketing process are included in the agent's fee or are separate to it.
• Choose your real estate agent carefully. Get independent advice and guidance, make sure that you interview the right agents in your area and be prepared when you interview them.
• Don't choose an agent based on how much they say they'll get you for your property or how much they say they'll charge you.
• If you want to minimise costs, you could look into selling the property yourself but bear in mind it might not be the best way to get the maximum price.

Source: REIA, REI's from various states, IREC.

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