Buying property step by step

[Wealth Creator]

Hi all,
I have just conducted a search on the forum to find out if there is a topic regarding a step by step guide to purchasing property. I couldn't find anything but if there is something on this site that someone knows of could you please send me the link.
I was wondering if the investors on this forum have a documented step by step plan which they use from start to finish in aquiring a property including when to do your building inspection, what clauses you use in your contracts etc etc etc. Absolutely everything involved in a purchase step by step.
If there is something out there in this format it would be greatly appreciated if someone would like to share this with me. The reason for the question is that i was in the process of drafting my own checklist and then I thought to myself "why re-invent the wheel?" ask the experts..........

Thank-you

 

[Patosan]

That's not a bad idea Wealth Creator !

It would of course be of a general nature since states and indeed councils all have different requirements.
There have been queries about the same beast for developing, though I don't recall one being found.

Sounds like a business opportunity here ... whip out a quick book.
Though given the market me thinks there's no rush ... publishers wouldn't be falling over themselves for the rights.

 

[qaz]

Unfortunately it's done differently in practically every state.

 

[Wealth Creator]

Thanks for your input guys. I understand that it would be different for every state. However if somebody was wishing to share their list with me if they have one that would be great. I could modify it to suit no matter which state the original list is from. For us beginners this check list would be an invaluable tool......

Ta

 

[NigelW]

Hi all,
The reason for the question is that i was in the process of drafting my own checklist and then I thought to myself "why re-invent the wheel?" ask the experts..........

Thank-you

Whilst generally I agree with your sentiment, perhaps you'll learn more in the process of discovering it for yourself.

Maybe there's a better wheel? Or is this a wheel you need at all?

Yours mercurially
N.

 

[willair]

Wealth Creator,
it all depends on you,and your investment timeframes.
why not start in your local area,pick ten properties
and start to look at every property,they will all be different
in land area,bedrooms and layout, Then it always comes down to three
items,price,size,and location,but everyone has a different plan ,the only way is to know more about the property then the people trying too unload it..i think after a
while you will understand the smell of money as you walk into the any property..
good luck
willair..

 

[The Y-man]

Seeing as you are from Victoria.... (I am a bit rusty on this...)

1. Organize preemptive Finance
2. Get to know conveyancing lawyer. Warn them of impeding incoming contract (so they don't go on holiday etc)
3. Inspect property
4. Buidling inspection (to find points to negotiate on)
5. Place offer
6. Wait
7. If offer is rejected you might choose to revise or else go back to 3 to another property
8. Make sure a copy of contract is sent to conveyancing lawyer
9. Meet your financier / Sign the loan documents
10. Insure the propoerty
11. Make sure conveyancing lawyer has all necessary docs
12. Prior to settlement - inspect property with fine tooth comb - make sure all included chattels are there, all appliances functioning. If power is cut, you may need to reconnect in your name to test about 3 DAYS PRIOR to your final inspection.
13. Quantity Surveyor (can be a bit later)

Optional:
. Advertise property for lease
. Pest inspection

Contract clauses:
. Generally default, although if we are confident with financing and want to put in a low offer, we go unconditional on finance.
. Settlement periods vary depending on our circumstance.

Hope this at least gets you going.... No doubt I have missed some important points that other forumites will pick out.

Cheers,

The Y-man

 

[Wealth Creator]

Thank you all for your feedback.
Y-Man your list is precisely what i was after, thank you very much.....

Cheers
Wealth Creator

 

[Peter Parker]

Also worth getting is the free govt publications pitched to first homebuyers.

Consumer Affairs Victoria puts out a good booklet on buying and another on building and renovating.

Peter

 

[geoffw]

While not a step by step guide, National Bank (and probably the other major banks) do have a downloadable guide - but you do have to register. You could pick up a hard copy from the bank- it does contain a few good tips on home buying.

 

[the_captain]

All good responses thus far,

I woud add, get intimate with the financials and work out how much (if at all) your impending purchase is going to impact your cashflow.

Have a look at this thread in Caveat Emptor.

http://www.somersoft.com/forums/showthread.php?t=21288

There is a post from Kristine where she does some figures on the rate of return and so-forth. Very good and easy to follow!!

 

[Merovingian]

Hi all,
I have just conducted a search on the forum to find out if there is a topic regarding a step by step guide to purchasing property. I couldn't find anything but if there is something on this site that someone knows of could you please send me the link.
I was wondering if the investors on this forum have a documented step by step plan which they use from start to finish in aquiring a property including when to do your building inspection, what clauses you use in your contracts etc etc etc. Absolutely everything involved in a purchase step by step.
If there is something out there in this format it would be greatly appreciated if someone would like to share this with me. The reason for the question is that i was in the process of drafting my own checklist and then I thought to myself "why re-invent the wheel?" ask the experts..........

I know Margaret Lomas' books go through this process, but I'm unsure of whether it is of the detail you require.

I think the best way to find out is to ring an agent in the state or territory in question, and ask them. Or, there's probably information on each state's REI web site, I don't know, (too lazy to check)...

But yes, some sort of "sticky" thread would be nice.

 

[Bandita]

Hi all,

I know I haven't posted before, but I have been quietly reading all of your great advice for awhile now, and I really can't thank you enough for all the great insights you've given me and my partner.

There's a good thread relating to this topic at www.propertyinvesting.com, which has a pretty indepth list for the steps of purchasing a property:

http://www.propertyinvesting.com/forum/topic/7693

Hope this helps!

Cheers,
Jen

 

[The Y-man]

By the way, I just realised what I wrote is for existing residences. Different story for Off The Plan's.....

I think they start with:
1. Attend some function, get caught by sales rep....

But seriously, the steps are different - mailnly due to the fact you can't do a building inspection (for the obvious reasons), you can't get a firm commitment from the banks (as they want to see the finished product), and you need to do a whole series of due diligence with regards to builder, architects, inclusions, specific exclusions, warranties, etc etc.


Cheers,

The Y-man

 

[vandalic]

Fantastic thread, thanks for all your advice, this thread saved me creating a new one

 

[Rixter]

I know Margaret Lomas' books go through this process, but I'm unsure of whether it is of the detail you require.

Here's the book where you ill find the step by step process involved in the due diligence required to find & purchase an Investment Property, and build a Portfolio.

http://www.businessmall.com.au/cache/item-395public.html?cache=no


Hope this helps

 

[vandalic]

A good recommendation, I've had the book for a while myself and find it very useful. I'd also recommend her How to Create an Income for Life book.

Here's the book where you ill find the step by step process involved in the due diligence required to find & purchase an Investment Property, and build a Portfolio.

http://www.businessmall.com.au/cache/item-395public.html?cache=no


Hope this helps

 

[Peter Parker]

The strategy and type of property aspects are largely specific to investors, so investment books and this forum will tell you about that.

But for the rest of the buying process, such as arranging finance, putting in offers, inspections, what happens at settlement, etc it is the same for homebuyers and investors.

Hence I'd suggest approaching your state govt consumer affairs department for a booklet on buying a home. Because it's normally pitched at young first homebuyers it will be written in an easy to understand manner.

In Victoria at least it's also free

Peter

 

[Sitting Bull]

Seeing as you are from Victoria.... (I am a bit rusty on this...)

1. Organize preemptive Finance
2. Get to know conveyancing lawyer. Warn them of impeding incoming contract (so they don't go on holiday etc)
3. Inspect property
4. Buidling inspection (to find points to negotiate on)
5. Place offer
6. Wait
7. If offer is rejected you might choose to revise or else go back to 3 to another property
8. Make sure a copy of contract is sent to conveyancing lawyer
9. Meet your financier / Sign the loan documents
10. Insure the propoerty
11. Make sure conveyancing lawyer has all necessary docs
12. Prior to settlement - inspect property with fine tooth comb - make sure all included chattels are there, all appliances functioning. If power is cut, you may need to reconnect in your name to test about 3 DAYS PRIOR to your final inspection.
13. Quantity Surveyor (can be a bit later)

Optional:
. Advertise property for lease
. Pest inspection

Contract clauses:
. Generally default, although if we are confident with financing and want to put in a low offer, we go unconditional on finance.
. Settlement periods vary depending on our circumstance.

Hope this at least gets you going.... No doubt I have missed some important points that other forumites will pick out.

Cheers,

The Y-man

Probably a stupid question but here goes,
With regards to points 3 to 7, if you were to get a building inspection after your offer was accepted but prior to settlement and your contract contained a "subject to building inspection" clause, do you have any right to either renegotiate the purchase price or terminate the contract should the inspection uncover some defects?

 

[Rixter]

Probably a stupid question but here goes,
With regards to points 3 to 7, if you were to get a building inspection after your offer was accepted but prior to settlement and your contract contained a "subject to building inspection" clause, do you have any right to either renegotiate the purchase price or terminate the contract should the inspection uncover some defects?

Yes, should the buildings inspection uncover defects you then have the right to terminate the contract or you could reapproach the vendor and ask them if they would take on the cost of defects or allow for them in a reduced contract price.