Looking at buying a property for investment?
Investing - The role of your conveyancer
The definition of “conveyancing” is “the transfer of title to land”. Whilst that is legally and technically correct - the role of a “conveyancer” in today’s world is much broader. At Paul Denny Conveyancing we appreciate the whole process of buying and selling property is one of the most stressful times a person can experience. We regard our role as being the careful management of the whole buying process - with the result being a stress-free completion of the sale or purchase. This is particularly important when purchasing an investment property. To get things wrong at the beginning can result in expensive consequences. Specifically - the role of Paul Denny Conveyancing is:
INITIAL CONTRACT REVIEW - AT NO COST
There is no such thing as a “standard” contract. We offer a complimentary initial review of the contract – to identify: · any features of the property which may rule it out of consideration.
unfair conditions in the contract – which will be later negotiated - either removed or amended.
leases already in place to ensure the investment aspect of the purchase is sound.
Council zoning – to identify any future development potential · GST implications
CONSIDERATION OF THE “PURCHASING ENTITY”
When purchasing an investment property consideration should be given to the “purchasing entity”. It is important to know which is most appropriate - Personal names, company, trust or superfund? Each have unique considerations regarding stamp duty, Land Tax, Capital Gains Tax and GST. At Paul Denny Conveyancing we liaise closely with our client’s financial advisers to ensure that the property is purchased in the most appropriate and tax effective names to avoid expensive ramifications in
ARRANGE PROPERTY REPORTS
It is important to remember that, when buying a property, you are buying it “as is”. For this reason, we recommend obtaining building and pest (termites) reports and, if the property is part of a strata title complex, a report on the whole strata scheme. We can obtain these reports (usually) within 48 hours and will discuss the content with you before proceeding with the purchase. Our team of building inspectors are always willing to meet our clients onsite and discuss the report directly. We have observed that speaking directly with the inspectors who have conducted the inspections puts context around their written reports.
LIAISON WITH THE LENDER
The financial arrangements for the purchase of an investment property are quite complex - often involving other property as security. It is important to ensure that funds are fully approved to complete the purchase. We work closely with the financial institutions right through the buying process – to ensure that information is provided in a timely manner and that the loan documentation is ready for settlement to go ahead on the due date.
WHEN THINGS GO WRONG
Sometimes things go wrong! We have no control over the actions of other parties. This is where our depth of experience is incalculable. Our systems and processes – developed over decades – identify possible complications in advance which can then be efficiently resolved before getting out of hand. Sometimes it is not possible to predict circumstances created by other parties (a vendor may just “announce” that they will delay settlement!). Should this happen, our legal knowledge and
experience comes to the fore – to resolve the situation as best as possible, whilst avoiding the possibility of lengthy
and (financially and emotionally) draining litigation.
CONSTANT MONITORING AND REPORTING
The legal process of buying a property comprises hundreds of minute steps – all of which must be
constantly monitored. To miss just one can have devastating results. It is not uncommon for a settlement to fall over at the last minute – just because of spelling mistake or a missing name. Paul Denny Conveyancing has developed a comprehensive system – backed up by state of the art technology – to ensure that our clients do not experience such dramas! Our clients are kept fully informed throughout the whole buying process.
Paul Denny Conveyancing carefully considers the extent of “searches” and “enquiries” that need to be made – to ensure no nasty surprises after settlement. We also will advise on the benefits of “Property protection insurance” to cover those circumstances which either may not be discoverable or, if they are, cost prohibitive.
GOVERNMENT AND TAXATION REGULATIONS
Nowadays both Commonwealth (ATO) and State governments have strict requirements regarding the reporting of the purchase of a property. This is particularly relevant for non-residents of Australia. Paul Denny Conveyancing has the systems take care of all of this.
Paul Denny Conveyancing are the pioneers of embracing the latest technology. The ability to settle the purchase of a property on-line eliminates the possibility of something going wrong at the very last minute. The only limitation on this new facility is the reluctance of the legal profession generally to also embrace it. For this reason, currently, only about 25% of settlements are conducted electronically. We anticipate that this will progress to 100% over the next few years.