TOP TIPS FOR BUYERS
January 2005

Many buyers have a tendency to gloss over the purchase conditions when they're convinced they've found a great property at a great price, leaving the seller with the upper hand. But taking time to add in a few conditions of your own can lead to an even better investment than you hoped for.

Building and pest inspections are fairly standard conditions, and they're crucial, but why not consider a few more that can ensure more money ends up in your pocket.

Here are some ways of boosting your investment:

" If you're planning to develop, renovate or subdivide the property, include a clause allowing you and your advisors reasonable planning access once the contract is unconditional. This ensures work can begin immediately after settlement, saving you time as well as interest costs.

" Request that your property manager can access the property as soon as finance is approved to speed up the process of readying it or advertising for a tenant, rather than wait for settlement. As the contract is generally unconditional by then, the seller isn't at risk of the deal falling through, but it can mean the difference between securing a tenant quickly or losing money through a lengthy vacancy.

For strata properties ask for budget details and the minutes of the last annual general meeting as they can reveal any major disputes or concerns that may affect you as owner. For example, it may give you early warning of plans to introduce a special levy for upcoming major repairs.

" Include a clause requiring the seller to endorse the Seller's Disclosure Statement that the agent can then pass on to you. This is a comprehensive list of warranties and disclosures the seller makes. It ensures you as buyer can take action against the seller if any of these disclosures turn out to be incorrect or misleading.

Before snapping up the property, ensure you also check:

" Potential changes to roads, eg. road widening which may encroach on your property
" Potential zoning changes, which may be negative or positive
" Check that any improvements were council approved to avoid having to demolish your garage or patio
" If deep sewerage is connected or the property is on septic tank, as there may be connection costs or costs involved in decommissioning the tank
" Any easements or encumbrances, which could have costly consequences, such as a restrictive covenant preventing you from blocking a neighbour's view.

For more information, please contact
Mr Trevor Dunkley
Director
Property Wizards
trevor@propertywizards.com.au
Tel: (08) 9381 7450