Qld Property

Hi Jordan

Another Victorian who has seen the light and decided to invest in Qld good for you.

Slightly unsure as to the laws relating to contracts in Victoria but the Qld system is simple.

The Standard Real Estate Agents of Qld Contract contains between 2-4 pages of property and personal information 9dependant on whether it is a House or Unit) and then upto 13 pages of explanation and defination.

At the front of the Standard Contract comes a Contract Warning explanating to you certain rights that you have under the Contract.

Most Contracts are signed subject to finance and a building & pest inspection although again these are indivual decisions and may not proove attractive when trying to negotiate the best price from the Vendor.

In addition, all REIQ contracts now come with a 5 days cooling off period. This can be waived by obtaining a statement from you Solicitor that he has given you advise explaining the consequences of waiving this right. It is to be completed on a prescribed Form 32A.

Should you elect to terminate the Contract during the 5 day cooling off period and using the Cooling Off notice as the reason for doing so then you will forfit 0.25% of the purchase to the vendor deducted by the agent from your deposit.

Should however you terminate the contract because either

1) You were unable to obtain finance to your satifaction or
2) The building / pest inspection did not come upto your expectations

then a full refund of your deposit is obtainable.

The Standard Contract passes the Insurance Liability onto the purchaser who is responsible for insuring the building from the date of signing the contract. This should be effect by a temporary Cover Note.

Should you require a Qld lawyer who specialises in conveyancing please feel free to email me and i would be happy to give you their contact details.

Remember with any IP purchase ensure that your loan is established correctly to maximise Tax benefits as well as reducing interest payments.

Feel free to email me should you need assistance in this regard.

Cheers Richard
[email protected]
http://www.yourstatefinance.com

IP funding and US property finance
our speciality

You should look at returns from rent in the area you are looking to purchase, at the current prices in QLD seem to have stopped rising and I will suggest that you will research carefully were you invest. You can do a fair bit on the internet, you can find some information about land tax in QLD at http://www.osr.qld.gov.au. Also ask yourself why QLD? Did you know that now for similar ongoing expenses you can have an apartment in Sydney?
So first decide what drives you to invest in QLD then you will need to find the right area check the council plans for the future as for infostructure and community development, what type of tenant you going to have? How much does he going to be able to pay? How much a money you can borrow at the chosen area? How much does it going to cost to hold this property? Who is going to manage your property? How much does he charge? …..and more. You should analyse your position in details as if you open a business and this is your plan…and you should take into consideration the tax implication.
Should you require assistant as for how to structure your finance or/and how to analyse your proposed IP, please email me using this forum.

Regards,

ES

Disclaimer: this information should not be taken as advice. You can use the above at your own risk no guaranties given by the author. You should seek appropriate guides and conduct your own research.

There are a couple of good articles in the August Australian Property Investor magazine that address two issues raised above. The first “The Price of Defaulting”, compares the termination conditions of a Contract of Sale between all states. The other “Land Tax Update”, has all the States latest thresholds and land tax rates.

Mal

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