When purchasing a home or property in Queensland, there are seven common mistakes that people often make during the Conveyancing process. The word Conveyancing simply means the transferring of the title from one person to another, such as seller and buyer. These mistakes can often be very costly and have long-term repercussions, so it is important to avoid them.
# 1: Going over the budget. This is a very easy mistake for new home buyers to make, as the excitement of purchasing a home can often blind a person to the reality of their financial situation. It is so easy to fall in love with a home without figuring out how to pay for it. Having a realistic view of how much money is brought in per year, as well as knowing exactly how much can be set aside for making a house payment, can alleviate a lot of financial stress in the future.
#2: Not figuring in other costs involved. This is extremely common in people who have never purchased property, as they are not aware that there are other costs besides the purchase price of the home. In addition to money for property searches and solicitor’s costs, there are also stamp tax duties and application fees. Be sure to calculate these costs into the final budget.
#3: Believing everything they hear. It is a common practice for a real estate agent to cause panic by implying that there are other people looking at a particular property. They do this to try to influence a buyer into making an offer above what they can really afford in order to increase their own profit. The best way to avoid making this mistake is to simply not budge from the offered price. More often than not, the sale will go through just fine.
#4: Not having the right property searches or surveys done. This mistake is one that can be very costly but is also one of the most easily avoided! Property surveys do cost the buyer additional fees, but can save considerable money. These surveys will uncover problems with the home, repairs that need to be made or whether the house is even allowed to be purchased. After all of the results from the searches are in, the buyer can then decide whether or not the home is worth purchasing.
#5: Not asking questions. It is a colossal mistake for a buyer to purchase a home based on how it looks. Important questions to ask are whether or not the wiring is up to code, how old the heating and cooling systems are, the condition of the roof, etc.. All of these things have an impact on how cost effective a purchase is.
#6: Having a fixed mortgage rate for too long. Many buyers are convinced that a longer mortgage period actually lowers their payments so they are conned into extending the mortgage period to ten. 15, or even 30 years. This is a mistake as interest rates fluctuate over time. The buyer will end up paying more in interest than on the capital by acquiring a longer mortgage.
#7: Not having a large enough deposit. If a buyer is truly interested in purchasing a home, he should save up enough of a deposit to be able to pay a full 25% of the purchase price. This enables him to get a far better deal from the bank, as the amount of the mortgage will be considerably less.
In order to avoid these potentially costly mistakes, the best thing a buyer can do is hire a solicitor. Having an expert opinion and guidance will help the homeowner avoid common mistakes during the property Conveyancing process.