DIY Conveyancing

[JWR]

Hi guys,

I was wondering if anyone has done the conveyancing themselves and saved the $1000+ fees.

My strategy is to buy many IP's between $100-200k - and especially with the ones at $100k, the costs are not cheap for the conveyancers.

It shouldn't be hard really, should it? As long as you have a contract you are happy with, do you only need to transfer the title of the properties and arrange for stamp duty paying etc... or is there more to it.

If anyone has had any experiences or advise I would love to hear it.

Thanks,
James

 

[Rixter]

For the sake of $1000 why would you even bother. If like most astute investors you borrow the purchasing costs anyway so its only increasing your expenses $1 a week. Money well spent if you ask me for peace of mind knowing a conveyancing solicitor with their years of professional expertise is looking after your legal & financial affairs .

 

[JWR]

Hi Rixter,

I wasn't aware you could borrow the purchasing costs. How does this work?

For my first property, my LMI was capitalised but the stamp duty, building and pest, conveyancing etc... were paid with cash - along with fees relating to set up the mortgage etc...

Do you put in on credit card or something similar or can you instead capitalise it onto the mortgage?

 

[Bigtone]

Hi guys,

I was wondering if anyone has done the conveyancing themselves and saved the $1000+ fees.

My strategy is to buy many IP's between $100-200k - and especially with the ones at $100k, the costs are not cheap for the conveyancers.

It shouldn't be hard really, should it? As long as you have a contract you are happy with, do you only need to transfer the title of the properties and arrange for stamp duty paying etc... or is there more to it.

If anyone has had any experiences or advise I would love to hear it.

Thanks,
James

dont do it

 

[Rixter]

Do you put in on credit card or something similar or can you instead capitalise it onto the mortgage?

In my early years I borrowed 105% of the IP purchase price in one loan for each IP ....now days I still borrow 105% of the purchase price but spread across 2 loans.

25% from a LOC to cover the 20% deposit plus 5% purchasing costs for Conveyancing Fees, Stamp Duties, Rates Adjustments, Buildings & Pests Inspections etc), and the remaining 80% in a IP loan secured against the new IP.

I hope this helps.

 

[JWR]

Thanks Rixter,

So I couldn't do it yet as I have no real equity built up. Will have to wait a few years!

To Bigtone; it seems pretty easy (I am sure it is not) - what are some of the reasons you believe I should try to avoid it?

 

[Rixter]

Thanks Rixter,

So I couldn't do it yet as I have no real equity built up. Will have to wait a few years!

You said you were buying many IP's $100k - $200k.. you will need equity in them to continue purchasing.

 

[JWR]

Sorry Rixter,

Just read your latest post again. Is there anyway to get the 105% loans these days? The best I can see are 95% loans. I am probably a little more risk averse though so would probably stick to 90% loans - but if I find a real good deal it would be great to get 100%+.

 

[JWR]

Just to clarify Rixter. I plan on buying many IP's over time.

I have lots of money available for more IP's if I need it (in shares and cash), but I am just waiting for the right deals to come along where I am buying a 100k property that is really worth 120-130k. My plan is to then revalue it in a year's time and use the equity to buy another, whilst using my growing capital base through savings to buy more and more IP's along the way.

 

[Rixter]

Is there anyway to get the 105% loans these days?

Yes, secured against existing equity of your own or borrowed from some one else.

 

[JWR]

So this involves Cross collateralising? I am not a huge fan of this concept; though if it will help me get into another property I will consider it.

Borrowing it from someone else - how is this possible? Is it to do with vendor financing (I have tried this but the banks said no) or are there other ways?

Thanks very much for your help btw

 

[Rixter]

So this involves Cross collateralising?

I Xcolled and it allowed me to get into my first few props faster. Then as those props increased in val I got the bank to release the other security used at the time of purchase. You could also borrow secured against other assets you hold such as shares in your case if you are in a position to do so.

Borrowing it from someone else - how is this possible?

Use some elses equity as security on a loan. They borrow the funds then you pay them or they put up an asset as security over your loan then when your IP increases in value you can get the bank to release their title as security.

 

[JWR]

Not sure my parents or friends will trust my ability in property just yet to use their security. One of my ideas though is to buy a run down house in my name, use my friends money and labour to pay for the renovation and then split the profits after revaluing the property accordingly.

Thanks for the help. Back to the original question though; is DIY conveyancing possible?

 

[Rixter]

Back to the original question though; is DIY conveyancing possible?

Anythings possible ,,,,if they (solicitors) can do it so can you but why risk it legally & financially for the sake of a buck. They've been doing it all day every day for years and know the processes like the back of their hand saving you hours of work/stress to protect you & minimise all your risks.

 

[RPI]

You can do it yourself, but you stuff up its your problem, solicitor stuffs up its theirs and their insurance companies. Use a lawyer, not a conveyancer.

 

[Terryw]

So this involves Cross collateralising? I am not a huge fan of this concept; though if it will help me get into another property I will consider it.

Borrowing it from someone else - how is this possible? Is it to do with vendor financing (I have tried this but the banks said no) or are there other ways?

Thanks very much for your help btw

No need to cross. Just build up equity and set up a LOC on an existing property. Borrow deposit and costs from this LOC and rest from a loan secured on the new property and you have your 105% loan.

 

[Rixter]

No need to cross. Just build up equity and set up a LOC on an existing property. Borrow deposit and costs from this LOC and rest from a loan secured on the new property and you have your 105% loan.

Yep already covered in Post #5 above this thread.

 

[Ski-bum]

Yep we did our own conveyancing for our first property. Bought a DIY conveyancing guide from the bookstore and followed the step-by-step guide.

We wanted to learn about the process, so thought doing it ourselves would be the best way to. It was time consuming (lots of phone calls, faxes, to-ing and fro-ing during work hours) and if any legal issues arose, we would've had to engage a solicitor.

Luckily no issues arose and it was a smooth process and settlement.

We've engaged conveyancers/solicitors for all our other property purchases since then. Mainly for the time factor and use of a legal representative if anything went wrong.

In hindsight, knowing what we know now, it was risky to DIY if anything went wrong. For the sake of $1000, I would recommend using a professional.

 

[Peter_Tersteeg]

DIY conveyancing is cheap until something goes wrong. At that point it gets really, really expensive.

 

[Jacque]

My two cents.... save yourself the headache and enormous risk and leave it to a professional. There are better ways to spend your time, especially when you're dealing with an asset that is costing hundreds of thousands of dollars.... there is a reason conveyancers study for as long as they do. Best of luck with your purchases.