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Buying a property is the most expensive and significant purchase we’ll ever make in our lives.
This makes the purchase process one of life’s most exciting and daunting moments. When buying small items like clothes or cars one can browse, pause, walk away, think and consider. But when buying a half-million-dollar property at auction, the single opportunity to buy is happening right before your eyes. The time to decide is now. Even if you purchase privately and have given weeks of thought to a property, the decision is rarely easy one.
The heat of the moment of an auction and the emotion of becoming attached to a property can sometimes result in post-purchase uncertainty. For whatever reason it may be, it is worth noting that buyers have rights after purchase, and as of March 1, 2012 the Sale of Land Act (in particular section 31) changed to protect Victorian purchasers even further.
Cooling-off rights
Basically put, the legislation now allows for a purchaser to “cool off” after making an offer on a property, no matter what the circumstances are.
Previously a purchaser would forfeit the statutory three-day cooling off period if he or she had sought legal advice prior to signing a contract to purchase a residential property. Purchasers could also agree to remove all rights to a cooling off period legally, by choice, through a solicitor.
However as of March 1st, a Victorian purchaser will no longer lose the right to the cooling-off period if he or she received legal advice, and the new amendments to the legislation also no longer allow the purchaser to legally waive their three-day withdrawal period.
The amendment to the legislation is a positive for purchasers who are not 100% certain about their decision. This may not be good news for purchasers that are certain on their decision, however, as a selling agent will be less likely to accept an offer before auction, or entertain the idea of negotiating with a buyer before an action, if the buyer can still cool off. Previously, if a strong offer was put forward without a cooling-off period, the offer was as good as being sold under the hammer, as it was deemed an unconditional offer.
From a negotiation perspective, this reduces a purchaser’s bargaining power, as waving the cooling-off period was a negotiation tool used by some purchasers, and this avenue is no longer available – no matter how certain they are on the purchase.
Just one example of this being used to a buyer’s advantage was a recent property Infolio purchased on behalf of a buyer in Carnegie, where we secured a purchase price of $773,100 – despite there being an offer above $775,000 – due to our waiving the cooling-off period.
Key negotiation tools now include submitting offers that are not subject to finance or a building inspection and agreeing to an early release of the 10% deposit, known as a section 27.
More information on the changes affecting buying and selling property effective from March 1st can be found at <a target="_blank" href="https://www.consumer.vic.gov.au">www.consumer.vic.gov.au</a>.
Cameron Deal and Lauren Staley are founders of Melbourne buyer advocate and property management agency <a target="_blank" href="https://www.infolio.com.au/index.php/home">Infolio</a>. 
 
 
 
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Victorian buyers have lost a bargaining chip but gained the ability to change their minds in cooling-off changes

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For many Australians, a holiday house by the beach is the holy grail of property ownership. Particularly this time of year, as the sun shines, each Friday droves of city folk head for a coastal escape.
For many people, the decision to purchase a holiday home is more about investing in their quality of life. The best advice for anyone considering a holiday home purchase is to ensure that you can afford to hold onto it long term.
If you do not correctly anticipate the costs associated with a holiday home, you might find yourself in a situation where you’re being forced to sell up.
Forced sales often result in the property selling for less than the vendor wants and less than what the property is worth.
Another important point to note is that coastal towns generally experience large peaks and troughs in prices. They spring up in summer when everyone is holidaying, and they come down in winter when people are hibernating.
During winter you’re less likely to experience inflated sales figures. Consequently, winter is generally a better time to buy.
If you do decide to put in an offer over summer be savvy with terms, ask for a longer settlement, perhaps a 5% deposit and access prior to settlement if you need to measure up or find tenants.
Good purchasing opportunities may also arise when there is global financial uncertainly, as this often produces fire sales. This opens up the market for people to secure themselves a quality property at a good price.
Some people choose to purchase a property, lease it out on a fixed tenancy then lease another property close by for a lesser price than their mortgage repayments.
As a result they can maintain their mortgage and still have the benefits of a holiday home in a coastal area.
It can be very rewarding owning a beach house but remember that it too will require maintenance and upkeep, if your property falls into disrepair in between seasons it will lose value and rental appeal.
Lauren Staley is director of <a target="_blank" href="https://www.infolio.com.au/">Infolio</a>, a buyers’ advocacy and property management company.
For more advice on buying your first investment property, <a href="mortgage-choice-ebook" target="_blank">download our free e-book.</a>
 
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How to get the most out of a holiday home investment

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Purchasing your first investment property can be daunting and exciting at the same time. It is also often the most important purchase an investor will make. The property selection process will dictate whether the buyer will be able to grow her portfolio to a second, third, or fourth investment property. 
The selection process is the first and most crucial step to securing a property that will achieve a high level of capital growth and return on investment. 
In-depth research is imperative to gaining a compressive understanding of the property market, in order to identify out-performing suburbs and homes. The best investors spend time attending auctions, monitoring sales trends and tracking suburb growth figures to gain an insight into how much they should expect to pay for their properties. 
First-time investors should consider properties that have proven historical capital growth patterns. Melbourne areas that have performed well in the long term are the bayside, inner east and inner southeast areas, as well as select suburbs on the north and western side of the CBD. 
For investors who feel they have been priced out of the housing market in popular areas, apartments can offer a more affordable solution. Look for apartments of at least 50 square metres in quiet residential locations, with parking and outdoor space. 
It may be tempting to purchase a cheaper investment property further away from the city, however the rental demand in these areas isn’t as high and as a result rental properties have a higher vacancy rate. If your property is vacant, you’re left having to cover a larger gap in mortgage repayments than you had intended. 
Poor property selection is one of the biggest mistakes a first-time investor can make, because it sets them behind from the very beginning. Often soon-to-be investors approach us with very little knowledge of the local property market. As buyer advocates, we are able to use our knowledge and experience to select the best properties. 
Now is a great time for first-time investors to enter the market, as many capital cities across Australia have hit a soft patch. 
Sellers are having to vie for the buyers’ interest, providing buyers with the opportunity to negotiate a price that will deliver a good return on their investment. 
A well-researched investment property appeals to the rental market, ensuring a strong and consistent rental income for the investor, which will enable an investor to expand her investment portfolio, or use equity to purchase a dream home.
Lauren Staley is director of <a href="https://www.infolio.com.au/" target="_blank">Infolio</a>, a buyers’ advocacy and property management company.
For more advice on buying your first investment property, <a target="_blank" href="mortgage-choice-ebook">download our free e-book.</a> 
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Your first investment property will set up the rest of your portfolio

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The property market has hit a soft patch, with many adopting a wait-and-see attitude. 
However, there are many reasons why a soft market is not the time to hibernate. A slump in real estate can be the ideal time to act and secure a good investment property. 
For those who have been dreaming of owning a bigger home, or investing in properties in premium suburbs and districts, a soft property market can present good conditions to expand or establish a property portfolio. With more properties for buyers to choose from, sellers face stiff competition and have to vie for the buyers’ interest.
 Sellers, whose properties have been on the market for a longer period, may be more open to negotiations with serious buyers. 
Home buyers and investors need all the facts in order to make a sound property investment. 
Research is of paramount importance when purchasing property. A buyer must keep track of the outperforming and emerging suburbs and highly sought after areas in Melbourne. 
In cases where properties are passed in during auctions, post auction negotiations are crucial. 
With the rental market still going strong, this means that investors can look forward to reaping a profit from their investments within a shorter time. This is definitely another good reason to enter the property market now. 
As the warm weather continues through spring, we’ll see an increase in listings. Buyers are now beginning to purchase properties that were previously unattainable. 
The highly sought after inner suburbs are now within reach for many couples and families that have always wanted to buy in these areas. 
In short, buyers can benefit from the current property market. 
Lauren Staley is director of <a href="https://www.infolio.com.au/" target="_blank">Infolio</a>, a buyers’ advocacy and property management company.
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Lauren Staley

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