Tuesday, August 1, 2017

Why Does it Take a Mountain of Paperwork Just to Buy a House?

Buying a home is one of the most important decisions you will make. It’s representative of an adult standing on his or her own two feet. It represents freedom; a potential legacy; your home and sanctuary.

The process of looking for a house is very exciting, if occasionally challenging! It involves so much searching, bidding, budgeting and stress, but the moment you find that one space that is destined to be yours, it is positively exhilarating.

Then, with a great find comes great responsibility. And with great responsibility comes a great deal of paperwork.

Why is so much documentation necessary (causing you much stress as you rush around to collect and organise it all)? We break down the following reasons:

  1. For bank loans

    Banks require a lot of verification in order to consider approving you for a home loan. This is because they need to protect themselves against financial risk by ensuring you can actually afford the loan.

    Typically, banks will ask you for proof of identification, recent proof of income, investment records, credit card statements, current residential status and details of the contract of sale if you’ve already entered an agreement.

    You will also be advised to take out insurance on the property purchased, which should be effective on the date the contract is signed by both parties. Even though the property may be covered by the vendor’s insurance up to the date of settlement, most lending institutions will generally require purchasers to take out building and contents insurance from the date the contract is signed in order to safeguard the lending institution’s interest as the lender.

  2. For legal protection

    Presenting, signing and collecting documents can put a dampener on your excitement, but these documents are essential. They not only ensure the legal transfer, but they can protect your interests in the event of legal trouble encountered while settling the property.

    For instance, a contract of sale has the job of clarifying the conditions and inclusions made as part of the sale agreement. For instance: who owns the dryer that is bolted to the wall in the laundry? You can’t make assumptions about chattels, and the paperwork involved in managing this process can protect your interests. Other supporting documents like title search or a Certificate of Title are required as proof of ownership. Moves are being made by the government to digitise parts of this process – but for now, transacting these documents does churn through a lot of trees.

  3. For government records

    Once you settle a property and walk away with the keys it is not the end of the process. When a property changes hands, the government needs to be made aware of the shift in ownership. It also legitimises the transactions and accords you the official rights of a property owner as recognized by the state.

    Thus, after settlement  a transfer of land document should be lodged for registration at the Land Titles office. You should also be ready with your contract of sale, duties forms and a notice of acquisition to facilitate duty assessment.

The processes of making an offer, reaching an agreement and settling are quite complicated, so engaging the services of an experienced and qualified conveyancer can help you ensure that the transaction goes smoothly. For an obligation-free discussion with our friendly team at Think Conveyancing, contact us on 1300 932 738 or request a free quote online.

Why Does it Take a Mountain of Paperwork Just to Buy a House?

Buying a home is one of the most important decisions you will make. It’s representative of an adult standing on his or her own two feet. It represents freedom; a potential legacy; your home and sanctuary.

The process of looking for a house is very exciting, if occasionally challenging! It involves so much searching, bidding, budgeting and stress, but the moment you find that one space that is destined to be yours, it is positively exhilarating.

Then, with a great find comes great responsibility. And with great responsibility comes a great deal of paperwork.

Why is so much documentation necessary (causing you much stress as you rush around to collect and organise it all)? We break down the following reasons:

  1. For bank loans

    Banks require a lot of verification in order to consider approving you for a home loan. This is because they need to protect themselves against financial risk by ensuring you can actually afford the loan.

    Typically, banks will ask you for proof of identification, recent proof of income, investment records, credit card statements, current residential status and details of the contract of sale if you’ve already entered an agreement.

    You will also be advised to take out insurance on the property purchased, which should be effective on the date the contract is signed by both parties. Even though the property may be covered by the vendor’s insurance up to the date of settlement, most lending institutions will generally require purchasers to take out building and contents insurance from the date the contract is signed in order to safeguard the lending institution’s interest as the lender.

  2. For legal protection

    Presenting, signing and collecting documents can put a dampener on your excitement, but these documents are essential. They not only ensure the legal transfer, but they can protect your interests in the event of legal trouble encountered while settling the property.

    For instance, a contract of sale has the job of clarifying the conditions and inclusions made as part of the sale agreement. For instance: who owns the dryer that is bolted to the wall in the laundry? You can’t make assumptions about chattels, and the paperwork involved in managing this process can protect your interests. Other supporting documents like title search or a Certificate of Title are required as proof of ownership. Moves are being made by the government to digitise parts of this process – but for now, transacting these documents does churn through a lot of trees.

  3. For government records

    Once you settle a property and walk away with the keys it is not the end of the process. When a property changes hands, the government needs to be made aware of the shift in ownership. It also legitimises the transactions and accords you the official rights of a property owner as recognized by the state.

    Thus, after settlement  a transfer of land document should be lodged for registration at the Land Titles office. You should also be ready with your contract of sale, duties forms and a notice of acquisition to facilitate duty assessment.

The processes of making an offer, reaching an agreement and settling are quite complicated, so engaging the services of an experienced and qualified conveyancer can help you ensure that the transaction goes smoothly. For an obligation-free discussion with our friendly team at Think Conveyancing, contact us on 1300 932 738 or request a free quote online.


Why Does it Take a Mountain of Paperwork Just to Buy a House? posted first on http://thinkconveyancing1.blogspot.com

Monday, July 24, 2017

Friends Versus Business: Do You Need a Conveyancer for a Private Property Sale?

The process of property buying and selling necessitates considerable legal work. This is where the need for licensed professional conveyancers comes in, especially when the people at the other end of the deal are people you don’t know.

What happens, however, when you are dealing with people you know?

When you’re selling to friends and family, hiring a conveyancer may feel unnecessary. After all, you’re transacting with people you know and trust, and it will potentially save time and money if you skip this step and do your own conveyancing.

You know the old saying, though; never mix business with pleasure. As conveyancers, we’ve seen plenty of transactions fall apart over the years and in many cases, the problems arise when emotions are in the mix.

Here, we outline some common considerations that you still need to keep in mind – even when your buyers or sellers are your loved ones:

  1. You still need to meet all your legal obligations.

    Conveyancing, which can be a complex process, is guided by the laws of your state or territory. “You still need a conveyancer to prepare the contract of sale, a statutory disclosure statement (often referred to as ‘Form 1’) and the other documentation required by law for the sale to proceed,” explains the SA branch of the Australian Institute of Conveyancers (AIC). Managing this process on your own could see you overlook or skip essential steps in the process, which could result in delays or added expenses.

  2. You need someone to help you remain impartial.

    When we’re dealing with people we know, we can sometimes be hesitant to act as forcefully as we normally would with an unknown third party. A conveyancer helps add some impartiality back into the deal, to ensure you don’t unwittingly agree to unfair terms or conditions, and gives you a legal grounding to fall back on if you wish to negotiate with the other party.

  3. You need a check-and-balance.

    A conveyancer can play the highly important role of objectively checking through title transfer agreements made between yourself and your buyer, protecting your best interests in the process.

  4. You need someone to help you see the selling process to the end.

    A property transaction, especially one that involves your home, doesn’t just end with a turnover of keys. You have to liaise with the bank regarding your mortgage, inform the government of a change to ownership in the property and calculate the necessary adjustments. A conveyancer can help you care of these details, and offer guidance and support on any areas you’re unsure of.

To save money, you and your friend or family member may consider hiring one conveyancer to act on behalf of both of you. There are some serious risks here – for instance, a conflict of interest is quite possible, since the conveyancer will have to juggle the best interests of two competing parties.

As a result, very few conveyancers are willing to agree to such arrangements, and those who do require the parties to sign release forms freeing the conveyancer of any liability.

Our recommendation? When it comes to mixing business with pleasure, do your best to keep the process as independent, straightforward and stress-free as possible. For the sake of a relatively small fee, you can engage a legal professional to act on your behalf and ensure your best interests are prioritised, every step of the way.

At Think Conveynacing, we’re always happy to help you with any aspect of your conveyancing requirements. For more information on what we do and how we could help you, please contact our friendly team on 1300 932 738. You can also contact us online here.


Friends Versus Business: Do You Need a Conveyancer for a Private Property Sale? posted first on http://thinkconveyancing1.blogspot.com

Friends Versus Business: Do You Need a Conveyancer for a Private Property Sale?

The process of property buying and selling necessitates considerable legal work. This is where the need for licensed professional conveyancers comes in, especially when the people at the other end of the deal are people you don’t know.

What happens, however, when you are dealing with people you know?

When you’re selling to friends and family, hiring a conveyancer may feel unnecessary. After all, you’re transacting with people you know and trust, and it will potentially save time and money if you skip this step and do your own conveyancing.

You know the old saying, though; never mix business with pleasure. As conveyancers, we’ve seen plenty of transactions fall apart over the years and in many cases, the problems arise when emotions are in the mix.

Here, we outline some common considerations that you still need to keep in mind – even when your buyers or sellers are your loved ones:

  1. You still need to meet all your legal obligations.

    Conveyancing, which can be a complex process, is guided by the laws of your state or territory. “You still need a conveyancer to prepare the contract of sale, a statutory disclosure statement (often referred to as ‘Form 1’) and the other documentation required by law for the sale to proceed,” explains the SA branch of the Australian Institute of Conveyancers (AIC). Managing this process on your own could see you overlook or skip essential steps in the process, which could result in delays or added expenses.

  2. You need someone to help you remain impartial.

    When we’re dealing with people we know, we can sometimes be hesitant to act as forcefully as we normally would with an unknown third party. A conveyancer helps add some impartiality back into the deal, to ensure you don’t unwittingly agree to unfair terms or conditions, and gives you a legal grounding to fall back on if you wish to negotiate with the other party.

  3. You need a check-and-balance.

    A conveyancer can play the highly important role of objectively checking through title transfer agreements made between yourself and your buyer, protecting your best interests in the process.

  4. You need someone to help you see the selling process to the end.

    A property transaction, especially one that involves your home, doesn’t just end with a turnover of keys. You have to liaise with the bank regarding your mortgage, inform the government of a change to ownership in the property and calculate the necessary adjustments. A conveyancer can help you care of these details, and offer guidance and support on any areas you’re unsure of.

To save money, you and your friend or family member may consider hiring one conveyancer to act on behalf of both of you. There are some serious risks here – for instance, a conflict of interest is quite possible, since the conveyancer will have to juggle the best interests of two competing parties.

As a result, very few conveyancers are willing to agree to such arrangements, and those who do require the parties to sign release forms freeing the conveyancer of any liability.

Our recommendation? When it comes to mixing business with pleasure, do your best to keep the process as independent, straightforward and stress-free as possible. For the sake of a relatively small fee, you can engage a legal professional to act on your behalf and ensure your best interests are prioritised, every step of the way.

At Think Conveynacing, we’re always happy to help you with any aspect of your conveyancing requirements. For more information on what we do and how we could help you, please contact our friendly team on 1300 932 738. You can also contact us online here.

Monday, July 17, 2017

The Future is Now: How Technology is Making Property Transactions More Convenient

As the digital age continues to transform how we live, technology is progressively becoming integrated into everyday life. These days, hardly anyone can get by without a smartphone, the Internet and a home computer – and with such mod cons at our reach, it’s becoming more commonplace for transactions and business deals to take place online, too.

The property industry has not be immune from this advancement – in fact, it has enthusiastically kept up with the evolution of digitisation.

In the United States, the industry belief is that we’re headed towards seamless transactions: Rick Sharga, CMO of California real estate firm Ten-X, confirms: “The notion that people will be able to buy and sell properties wherever they are, whenever they want, using whatever computing device they feel like, is where the industry is going.”

Whether such a fast-paced state of play will be adopted in Australia remains to be seen!

That said, we are already seeing evidence of several ways in which technology is simplifying property transactions, for both buyers and sellers:

  1. Real-estate apps

    Apps continue to make life easy for agents and vendors, compiling complicated services into handy, user-friendly packages. For instance, Australian depreciation experts Washington Brown have developed the Property Calculator app for iOS, which helps investors to calculate expected depreciation tax benefits. The BMT Tax app serves the same purpose for Android users. Buyers can also determine the best properties and suburbs to invest in through the Suburb Investor app, which utilises data from CoreLogic to provide information on value. And of course, a good browser app never hurts to get you access to the top real estate websites.

  2. Social media

    One of the best places to list – and find – homes for sale these days is increasingly through social media platforms, such as Facebook and Instagram. Word spreads easily because postings can reach your friends, and their friends – and you never quite know who’s following along. Social media also enables a seller to show off photos and videos of the property on the market, and to even provide real-time updates on any work being done to enhance the property further.

  3. Virtual reality

    Interested buyers are now able to view houses through their screens instead of having to personally visit the property. Video tours are one of the most popular ways to market real estate, especially those that utilise 3-D software, as they enable you to experience a home halfway across Australia. Photo editing software is getting more sophisticated, allowing virtual staging – where you can add decor and furnishings to listings photos – in order to give buyers a premium idea of how the house will look once lived in.

Behind the scenes, technology is enabling faster processing of paperwork and correspondence, which may soon translate to faster conveyancing and improved finance processing times, leading to quicker settlements.

However, whilst there are now a number of ways that the real estate industry is evolving and improving, nothing quite beats the personalised touch of one-on-one service. Whilst these apps and advances help to facilitate long-distance (and even global) interactions, buyers and sellers ultimately do business at a personal level, through phone calls, text messages and e-mail. At Think Conveyancing, we leverage the best of technology to make our operations as efficient as possible, while also keeping our focus on our customers. For an obligation-free chat about your situation and how we may be able to assist you, contact our friendly team at Think Conveyancing on 1300 932 738, or request a free quote online.

The Future is Now: How Technology is Making Property Transactions More Convenient

As the digital age continues to transform how we live, technology is progressively becoming integrated into everyday life. These days, hardly anyone can get by without a smartphone, the Internet and a home computer – and with such mod cons at our reach, it’s becoming more commonplace for transactions and business deals to take place online, too.

The property industry has not be immune from this advancement – in fact, it has enthusiastically kept up with the evolution of digitisation.

In the United States, the industry belief is that we’re headed towards seamless transactions: Rick Sharga, CMO of California real estate firm Ten-X, confirms: “The notion that people will be able to buy and sell properties wherever they are, whenever they want, using whatever computing device they feel like, is where the industry is going.”

Whether such a fast-paced state of play will be adopted in Australia remains to be seen!

That said, we are already seeing evidence of several ways in which technology is simplifying property transactions, for both buyers and sellers:

  1. Real-estate apps

    Apps continue to make life easy for agents and vendors, compiling complicated services into handy, user-friendly packages. For instance, Australian depreciation experts Washington Brown have developed the Property Calculator app for iOS, which helps investors to calculate expected depreciation tax benefits. The BMT Tax app serves the same purpose for Android users. Buyers can also determine the best properties and suburbs to invest in through the Suburb Investor app, which utilises data from CoreLogic to provide information on value. And of course, a good browser app never hurts to get you access to the top real estate websites.

  2. Social media

    One of the best places to list – and find – homes for sale these days is increasingly through social media platforms, such as Facebook and Instagram. Word spreads easily because postings can reach your friends, and their friends – and you never quite know who’s following along. Social media also enables a seller to show off photos and videos of the property on the market, and to even provide real-time updates on any work being done to enhance the property further.

  3. Virtual reality

    Interested buyers are now able to view houses through their screens instead of having to personally visit the property. Video tours are one of the most popular ways to market real estate, especially those that utilise 3-D software, as they enable you to experience a home halfway across Australia. Photo editing software is getting more sophisticated, allowing virtual staging – where you can add decor and furnishings to listings photos – in order to give buyers a premium idea of how the house will look once lived in.

Behind the scenes, technology is enabling faster processing of paperwork and correspondence, which may soon translate to faster conveyancing and improved finance processing times, leading to quicker settlements.

However, whilst there are now a number of ways that the real estate industry is evolving and improving, nothing quite beats the personalised touch of one-on-one service. Whilst these apps and advances help to facilitate long-distance (and even global) interactions, buyers and sellers ultimately do business at a personal level, through phone calls, text messages and e-mail. At Think Conveyancing, we leverage the best of technology to make our operations as efficient as possible, while also keeping our focus on our customers. For an obligation-free chat about your situation and how we may be able to assist you, contact our friendly team at Think Conveyancing on 1300 932 738, or request a free quote online.


The Future is Now: How Technology is Making Property Transactions More Convenient posted first on http://thinkconveyancing1.blogspot.com

Wednesday, July 12, 2017

New First Home Buyer Benefits – The First Home Super Saver Scheme

It was announced in the 2017/18 Federal Budget that eligible first home purchasers will be able to use the advantages of super to save for their home deposit.

The First Home Super Saver Scheme

The Government is allowing first home buyers to make voluntary contributions into super in order to save for a home.

First Home Buyers will be allowed to contribute up to $15,000 per financial year and $30,000 (over two years) in total from 1 July 2017.

From 1 July 2018 First Home Buyers will be able to apply to withdraw any voluntary contributions that they have made to their super for a deposit on their first home. The maximum amount that can be released from super is $30,000.00 of personal contributions, plus an associated deemed earnings amount.

There are many benefits, one of which is that by making these contributions by salary sacrifice, it may allow people to generate savings using super’s concessional tax rates.
Any withdrawals from a super fund will be subject to approval from the Australian Tax Office and will be taxed at the relevant marginal tax rate, less a 30% tax offset.

Time to get saving for your first home!

Speak to your Super Fund or read more here

https://www.ato.gov.au/General/New-legislation/In-detail/Super/First-home-super-saving-scheme/