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Why you need a conveyancer when buying a property

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Understanding all the different parties involved in buying a property can be a minefield.

The real estate agent. The building and pest inspectors. The mortgage broker (hi there!). The buyer’s agent. The auctioneer.

Well, here’s another one to add to the list – the conveyancer. Conveyancing is an important piece of the puzzle to ensure things go to plan with your shiny new property acquisition. Let us explain.

What is a conveyancer?

Conveyancing is the process of transferring ownership of the title to a property from the seller to the purchaser. A conveyancer is a licensed professional who takes care of this for you.

In some instances, they may be a solicitor, but not necessarily. There are solicitors who specialise in conveyancing.

What do conveyancers do?

Conveyancers may perform a range of tasks for the buyer, including:

  • Preparing and lodging legal documents such as the sales contract and transfer of land document
  • Conducting searches about the property and its title (including easements, planning restrictions and zoning regulations that could affect the property’s value, plus other important information you need to know about)
  • Transferring your deposit into a trust account
  • Providing advice about your obligations under state and Federal law (stamp duty)
  • Working out the settlement adjustments (the splitting of rates, land tax, water charges and body corporate levies between the seller and the new owner)
  • Overseeing settlement, liaising with financial institutions, and acting on the buyer’s behalf during the sale process.

On the other side of the coin, conveyancers can assist sellers with things like drafting the sales contract and liaising with the buyer.

Why do you need a conveyancer?

How good are you at understanding complex legal jargon? How about nutting out adjustment calculations? Are you across all the latest laws surrounding stamp duty and taxes in your state or territory?

Don’t worry, most people would be drawing a blank here, which is why they’d enlist the help of a conveyancer.

While you can opt for DIY conveyancing, it isn’t advisable unless you are really across the ins and outs of property law.

Your conveyancer can decipher all the legal terminology and requirements for you, guiding you through the settlement process. They take care of the finer details so that you can concentrate on the fun stuff – like planning your housewarming.

How much does a conveyancer cost in 2023?

The cost of conveyancing depends on where you are, the type of property you’re purchasing and the complexity of the sale.

As what you can expect to pay can vary greatly, make sure to factor in additional charges such as disbursement costs, which are the costs incurred by the conveyancer to third parties for things like settlement fees, certificates and searches.

Finding the right conveyancer

We work closely with conveyancers to ensure our clients have a smooth experience come settlement time.

For tips on what to look for when choosing someone to help you with sale contracts and settlement, contact us today.

2023-24 Federal Budget measures that could support you

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The Treasurer announced the 2023-24 Federal Budget which included a range of measures to help tackle the cost of living and improve housing affordability.

Whether you’re just starting your home buying journey, are looking to upgrade your home, or build a new one, these measures could support you:

  • The Home Guarantee Scheme criteria will be expanded to enable more people to qualify. Permanent residents, non-couple joint applications, previous home owners and more single guardians will be able to access some of the home guarantee schemes on offer from the new financial year.
  • A Household Energy Upgrades Fund to support home upgrades that improve energy performance and save energy. This includes $1.0 billion in funding to the to provide 110,000 low-cost finance and mortgages in partnership with private lenders for home upgrades that save energy.
  • For eligible new build-to-rent projects where construction commences after 9 May 2023, the government will increase the rate for the capital works tax deduction (depreciation) to 4 per cent per year and reduce the final withholding tax rate on eligible fund payments from managed investment trust (MIT) investments from 30% to 15%.

You can read more about these initiatives, as well as some other measures aimed at home buyers and owners  here.

To understand your options when it comes to purchasing or refinancing property, please feel free to contact us.

2023 property goals

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New year, new home? If this is the year you plan to get into the property market, there are a few things you can do to help you reach your home-ownership goals.

Below are five things to consider to make your property search.

Understand your borrowing capacity

The amount of money you can borrow will determine what properties you can potentially buy. This should be one of the first things you work out so you can narrow, or widen, your property search.

There are several factors that will affect how much a lender is willing to loan you. These include your income, living expenses, debts, assets, savings and the value of the property you want to buy.

The lender’s main concerns are your ability to secure the property with a deposit and your ongoing ability to make repayments.

Save your deposit

It takes time and discipline to save for something as sizeable as a house deposit. Saving a large deposit, at least 20% of the property’s value, shows a lender your ability to save and manage money over time. This is also known as genuine savings.

Lenders will take your deposit into consideration when calculating your loan-to-value ratio (LVR). The higher the LVR percentage, the higher risk the loan is for the lender.

You can reduce your LVR by saving a larger deposit or buying a less expensive property.

A 20% deposit will also save you from paying lenders mortgage insurance.

Find out about government incentives

If you’re a first-home buyer, you may qualify for incentives that will make it easier for you to get your foot on the property ladder.

The federal government’s Home Guarantee Scheme supports eligible low and middle-income first-home buyers so that they can purchase a home with a deposit of as little as 5%. The state and territory governments also offer the First Home Owners Grant and other state-specific grants and schemes.

We can help you find out what incentives you’re eligible for and guide you through the application process.

Get us to organise pre-approval

Pre-approval is an indication of what a lender is currently prepared to lend you. There’s no obligation for you to take out the loan and you still have to go through an application process to secure it.

There are several reasons why getting us to organise pre-approved finance is beneficial for your property search. Firstly, it will give you peace of mind and take away some of the uncertainty around what finance you will have access to when the time comes to make an offer.

It also shows sellers you are a serious buyer who is confident in the amount you can spend and able to move quickly to secure your dream home.

Find the right property

Now that you know what you can afford to buy and what incentives you’re eligible for, you can base your search around those parameters. Rather than going to dozens of open homes, you can focus your efforts on a smaller number of properties that suit your needs and budget.

Armed with your pre-approval, you can compare what your money will get you in different areas and weigh up your options. For example, would you rather buy a larger home in a more remote suburb and have a longer commute, or live in a smaller property that’s closer to work, family or your children’s school?

With your finances in order, you’ll be able to jump on the right property when you find it.

We’re here to help

Whether you’re looking to buy your first home, your next home, an investment property or refinance to a home loan that better suits your needs, we can help.

Five financial habits for 2023

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The new year is when many of us hit the reset button. It’s a chance to reflect on the past 12 months, reassess priorities, and set new goals.

If you’re looking to create some better financial habits in 2023, here are some techniques to help you can get in control of your money.

1) Create a budget you can stick to

Extreme changes to your spending habits may appear to deliver immediate results, but they can be difficult to maintain over the medium and long term.

Focussing on a range of budgeting strategies that are sustainable will greatly increase your chances of sticking to them.

Automate payments and savings deposits so money moves to where it needs to go before you have a chance to spend it.

Regularly check the progress of your mortgage and savings accounts to stay motivated and reinforce good habits.

2) Use apps to manage your money

Gone are the days when you needed to set up a complicated spreadsheet to track your spending. Budgeting apps such as Mint, YNAB and PocketGuard make it easy to categorise your spending and quickly review your finances.

If an envelope-based budgeting system has worked in the past for you, then Goodbudget is the digital equivalent which allows you to assign chunks of your income towards different spending categories.

Some budgeting apps, including Goodbudget and Fudget, also give you the option of manually entering your account balances rather than syncing to your bank accounts.

3) Cut back on non-essentials

Do you really need that takeaway coffee on your way to work? Look at your discretionary spending and where you can cut back or swap something for a cheaper alternative.

From making your own morning coffee and meal-prepping lunches to cancelling that streaming service you barely use, a series of small changes can add up to big savings without significantly impacting your lifestyle.

Seek out free activities and entertainment like a walk on the beach, a picnic at a local park or a family game night.

4) Consider consolidating debt

Debt consolidation is when all existing debts are brought together into one new loan. This can make it easier to pay back debts or to reduce monthly liabilities to improve cash-flow.

Other reasons to consider debt consolidation are the simplicity of one repayment, potential savings on interest rates and fees, and more manageable repayments.

We can help you assess whether debt consolidation is a suitable option for you.

5) Talk to us about your home ownership goals

Buying a property is one of the biggest purchases you’ll make in your lifetime and one that could set you up for financial security. Getting in control of your finances can assist in saving for a deposit and qualifying for pre-approval with a lender.

We can help you determine your borrowing capacity, weigh up the pros and cons of fixed versus variable rates and ensure the home loan application process is as smooth as possible.

Whatever financial goals you have for 2023, we’re here to support you.

How to stay cyber safe

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With scams on the rise, the last thing you want this year is to fall victim to one.

Here are four of the most common types of scams and how you can spot them.

1) Phishing

The most reported type of scam in Australia, phishing is an attempt to elicit personal information such as passwords, bank accounts or credit card numbers.

Scammers impersonate a legitimate business such as a bank—this could be via email, text, a phone call or social media. They will ask the recipient to confirm personal details because of a technical issue or ‘suspicious activity’ on an account, or offer a prize for filling out a survey.

While they may look genuine, these messages will have a link to a website that is slightly different to the real business’s Uniform Resource Locator (URL).

If you receive a suspicious message, do not click on any links or open any attachments. Simply delete it and contact the business directly if you want to double check.

2) False billing

False billing is when a person or business receives a bogus invoice, subscription renewal or an invitation to a fake directory. This scam relies on staff not knowing that the bill, renewal notice or advertisement is fake.

Attachments can be used to infect your computer with ransomware or the scammer may threaten legal action.

If you’ve never heard of the product or service, or someone claiming to be a supplier calls you out of the blue, then be wary. Verify all invoices before paying them and contact suppliers directly if it looks like their bank details have changed.

3) Online shopping scams

The anonymous nature of the internet makes it an ideal place to trick unsuspecting shoppers.

Scammers will pose as online retailers through a fake website or an ad on a genuine website. These websites will use stolen logos, offers of bonus gift cards and even legitimate looking ads on social media to lure you in.

Research from NordVPN found 93% of scam victims would hand over personal data for a bonus gift or discount.

If the price is too good to be true, it probably is. If you are unsure about an online trader, search for customer reviews.

4) Remote access scams

These types of scams attempt to convince you that you have an issue with your computer or internet connection. Scammers will often impersonate staff members from telecommunications companies or claim to be ‘technical support’.

They may claim your computer has a virus or that you should install new software and they need remote access to fix the problem.

If you receive an unexpected call asking for remote access to your computer, simply hang up. When you do need technical support, contact your provider directly so you know you’re talking to a legitimate staff member.

How to protect yourself

Scam attempts are here to stay, which is why you need to take steps to protect yourself. Here are our top tips to protect yourself from cyber-attacks:

• Don’t click on links or open attachments from unknown parties
• If you’re suspicious, follow up correspondence directly with the sender organisation (using contact details sourced from their official website)
• Learn how to use email safely  and  browse the web safely.
• Stay informed by checking  Scamwatch  for the latest updates.
• Mix up your passwords and use multi-factor authentication where possible.
• Look out for dodgy email addresses, spelling/grammatical errors or requests for money/information.
• If you suspect a scam, don’t reply and don’t follow the prompts.

How we protect our clients’ data

We understand the importance of data protection, which is why we use a cloud-based technology platform. It features security protections like multi-factor authentication, state-of-the-art encryption and security monitoring tools to protect data.

We hope that with these tips you have a cyber safe 2023 and we look forward to helping you with all your financial needs.