Top 11 mistakes

Top 11 Mistakes within Real Estate

Hello, I am Alan McGillivray and I have been in real estate for over 45 years with my wife Lorraine, and we both have experience second to none. We have been successful in real estate due to our knowledge, integrity and honesty.

It saddens me to hear of people getting caught making the wrong decision because they have been pressured by non ethical people, or they simply have just made a mistake, so I would like to share with you the 11 biggest mistakes people make within real estate.

I welcome you to discuss your requirements with us before you make any decisions.

TOP 11 MISTAKES made within Real Estate:
1.	Not doing your homework to find out the approximate costs of properties in the area where you wish to purchase
	It is important that a buyer checks out the area in which he wishes to purchase a property to find out what prices have been obtained in the area. If it is an investment unit, you must buy in a building and location where people want to holiday; close to beach and shops and on the beachside of the highway.

2.	Not having finance organised before offering to buy a Property!
	By having finance already approved, it enables the buyer to sign an Unconditional Contract of Sale and gives better bargaining power to ask the owner to reduce his price by offering.

3.	Not knowing what documentation you have signed in relation to purchase of property.
	The buyer must know whether he has signed a Conditional Contract or an Unconditional Contract. If you need finance, you must have a 7-14 days subject to finance clause inserted into the Contract. If you are then unable to obtain finance this clause enables you to have your deposit refunded to you . Be sure all aspects of the Contract of Sale are explained before signing.

4.	Not organising a Lawyer to represent you on the purchase of your property.
	It is important that you have a Lawyer independent from the seller's lawyer to act for you. He will arrange settlement of the property, and adjust all outstanding payments that may need to be carried out before settlement. He will also do various searches on the property you purchase, to make sure your interests are looked after. When purchasing a property on the Gold Coast it’s better to use a local lawyer.

5.	Not checking out The Real Estate Agent who you are going to Purchase property from.
	Your agent needs to be a reputable agent of long standing in the community, one that has a good knowledge of the area, is registered as a Licensed Real Estate Agent, operates his own Trust Account, and trades under his own name. This can be checked through the Office of Fair Trading, a government department here in Queensland that is responsible for the real estate industry.

6.	Not making sure that you know what chattels are being sold with the property.
	It is important that all the items you have been told are being sold with the property are listed by way of an inventory, attached to the Contract of Sale . This must be signed by you and the Seller, and should be checked out by your Agent before settlement takes place.

7.	Not checking out specific details when buying off the plan when the building will be completed in 2-3 years.
	It is important that you make sure that when buying off the plan that all information is explained and you are fully aware of what you are buying, including when the building is estimated to be completed. You need to be certain the price you are paying now is not over inflated, as you will be committed to pay this price on settlement. Remember the market does change and it is hard to estimate truly what the value of the property is going to be in 2-3 years.

8.	Not knowing the rules for buying new properties.
	With the foreign investment review board in Australia, anyone in the world can purchase brand new properties. Not everyone in the world is permitted to purchase established properties. This applies for all overseas countries except for New Zealand, whose buyers have the same rights as an Australian. This does effect the price of your property if you purchase a brand new property, then have to sell within a very short time. It means you come out the market which you bought in (anyone in the World) to a smaller market of only Australians and New Zealanders and your price could drop considerably. Australians and New Zealanders should be concentrating on buying established properties to avoid the problems created by this legislation. Not many Australians are aware of this situation. You must check it out.

9.	Not checking outgoings and costs related to property.
	Buyers must check outgoings and costs. If buying a Unit the cost per week of Body Corporate fees needs to be checked together with council rates and any other outgoings related to the property. Sometimes body corporate fees are advised to buyers, but on further investigation found they were incorrect. This could alter your estimations on costs.

10.	Not checking returns on the property.
	When buyers are buying a unit for investment, they must check out what the returns are on the property. If the property is let out on a holiday or permanent basis, knowing the weekly returns you can expect to receive is critical. In addition to impacting your profit, returns are used by finance companies to make sure buyers can repay and service any loan. Finance Companies judge your ability to repay the loan more on the basis of what you can obtain on a permanent basis than on a holiday basis. Your real estate agent can inform you what figure you should receive on a permanent basis.

11.	Moving from other states to the Gold Coast.
	It is advisable that prospective buyers rent a property on the Gold Coast for some 3-6 months to get a feel for the whole area, before you make such a huge commitment to buy . It takes some time to become accustomed to all the facilities and areas that suit your needs, and it is best to spend some time investigating all areas before deciding on the one that suits you.