Blog

Don't believe the statistics of property

In an age where we can get more and more information about property prices and statistics buyers are falsely believing this is the same as knowledge about the property market

?

I recently read an article from Andrew Winter the host of?Selling Houses Australia?where he talked about how there?is an overwhelming amount of news and information that bombards us about the housing market this may unwittingly be the opposite of reality.

It is important to understand that there are markets within markets and unless the statistics consider your exact suburb, or area, your property type and the era you purchased it then the numbers may be meaningless.

It is important to remember that markets are not purely state or city driven. They can be suburb by suburb and in some cases even one suburb can display a number of micro markets within it.

Andrew used the example where 'one mining boom town may offer the perfect buying conditions, while the one 250 km down the road may not. And yet they are still both mining towns and in the same state, but real estate wise they could be chalk and cheese'.

Although property data is extremely useful it must be understood that it can only be used as a general guide unless you fully understand the context that the data is collected.

The conflicts between the data and what is really happening can be frustrating however it should be looked at as an opportunity.

If you understand the market more than the statistics show then you have the potential to set the market not just follow its lead.

Dos and don'ts of buying property in SMSF

Sound financial advice is essential when buying property through your Self Managed Super Fund (SMSF) to ensure decisions made are compliant and reflect your investment strategy. There are several Do's and Don'ts when buying property in a SMSF

?

SMSF Do's

????????? Ensure your SMSF is set up correctly

????????? Make sure your SMSF fits withing your overall investment strategy

????????? Get advice about gearing before committing yourself

????????? Consider holding your business's commercial property in SMSF

SMSF Donts

????????? Dont wait until June 30 to do something

????????? Dont ignore compliance and administration obligations

????????? Dont let your trust deed go out of date

????????? Dont be concerned if you have no expertise - ask an expert

Designing your new home

Before you can build a house you first must determine what type of house you want to build. To articulate the type of house you want you must start by considering various house designs.

?

You can settle on a house design by various means including browsing the newspaper for house designs and contacting the relevant builder or consulting with a building designer or architect.

House designs in newspapers are generally protected by copyright. Project builders who employ designers generally produce copyrighted house designs. A builder cannot build houses using these designs without the permission of the copyright owner.

If you have seen a design in the newspaper that you like, you can approach the builder who placed the advertisement in the newspaper. The builders designer can modify the design to accommodate any specific requirements that you may have. These modified designs are also likely to be protected by copyright. You should make sure that you choose a block of land that is compatible with the house design you have selected.

If you come across a house design you like by visiting a display home, contact the builder who built the display home. Make sure you check that all the features of the display home are included in the building contract. Many project builders offer house and land packages (within specified locations), where the house designs available will fit on the blocks you can buy.

If you have an idea for a house design, you can employ a building designer, architect or builder (who offers a design service) to draw the design for you. By employing an design expert you can ensure that the design fits within your budget and you can keep also keep the design copyright.

When designing a house it is important that you choose a block of land first so that when you design your house it?maximizes?the potential for the block.

Considering site conditions

Site conditions can affect the price of building and the layout or design of the house that will be possible to build.

?

Site conditions will have an impact on the cost of building as it affects the amount of preparation required to lay the footings for the house.

Site conditions include the type of soil, how the soil is distributed across the block, how high is the water table and whether any trees or rocks are contained within the soil.

Some of these factors can be assessed before you build however it may be a good idea to employ an expert who can assist you to determine whether the block you are thinking of buying will involve a lot of site works.

Contract terms when buying land

When making an offer to buy land you will need to consider the total amount you are offering to pay for the land and whether you will be making any deposit toward the land.

?

You will also have to nominate a settlement date and state how you will pay for the land. Where applicable you may also require the insertion of any special conditions associated with the sale.

There is no limit to the conditions that may be placed on a contract however the vendor is not obligated to accept these conditions. Examples of general conditions include which party is required to pay any rates, taxes or fees levied, what happens if either party does not go through with the contract and what happens if settlement is delayed.

You can protect your interests by crossing out any terms that do not suit you or adding any suitable terms and then ensuring that all parties initial any changes to confirm that an agreement has been reached.

It is recommended that legal advice should be sought when dealing with legal contracts this may be from a solicitor or conveyancer.