Selling your home......A Building Certificate from the Council will help with the sale.

I recently acted on behalf of a client who was looking to purchase a property. After inspecting the property for the client and also perusing the contract for them, it was apparent that there were parts of the home that were not Council approved.

The uncertainty as to whether the property complies with Council rules and regulations can have an effect on the price, and in fact, scare buyers from making an offer.

If you are considering selling your home and you have made renovations or additions to the property, I would definitely advise that you obtain a Survey and Building Certificate from the Council which can alleviate buyers concerns. In a nutshell, a Building Certificate is a Certificate issued by the Local Council that says that the property currently complies with all rules and regulations set by the Council.

This type of Certificate is issued by the Council following a physical inspection of the property.

From a sellers point of view, the benefit of having this Certificate which can be inserted in the Contract for sale, gives the buyers certainty when they make an offer. They can bid with confidence knowing that the property complies with Council requirements.

Certainty and confidence from the buyers end, will in most cases achieve a higher sales price for the seller.

Definitely something to consider when selling. Always obtain quality legal advice from experienced professionals in property law before you sell.

Dean Carver
Property Lawyer + Real Estate Strategist
Solicitors Property Centre - Sydney

Homebuyers now using credit cards to pay for the mortgage

A recent article in the Daily Telegraph has revealed that first homeowners that have taken advantage of the first home benefits offered by the Government are now under "mortgage stress".

The articles says
"Just weeks after the grant was officially withdrawn, a survey of more than 26,000 borrowers conducted by Fujitsu Consulting revealed that 45 per cent of first-home owners who entered the market during the past 18 months are now experiencing "mortgage stress" or "severe mortgage stress"."

The Survey further revealed that thousands of homebuyers are using their credit cards just to meet mortgage repayments.

In my opinion, at some stage this will all come to a head and the credit card will reach its limit. With rising interest rates this can only mean more properties coming onto the market for sale.

Further, with Banks tightening their lending criteria, we may see real estate prices fall and at best remian "subdued" for at least 12 to 18 months.

To read the article click below
http://www.dailytelegraph.com.au/news/no-hope-for-aussie-homebuyers-as-thousands-struggle-to-foot-the-mortgage-bill/story-e6freuy9-1225825025688

Time for caution.....

Opinion by Dean Carver
Solicitor
Solicitors Property Centre - Sydney

Banks are now making harder to get a loan

Westpac Bank has recently changed its lending policy making it harder to get a loan to purchase a first home. Westpac has effectively changed its policy to ensure that borrowers provide more deposit towards the purchase.

Westpac has advised its Brokers that new customers will not secure a loan unless they can meet a loan to value ratio of 87%, instead of the former 92%.

Under a RAMS loan, the rules are tougher. A borrower must meet a loan to value ratio of 85%.

Changes to lending policy will make it tougher for borrowers to get into the market. Essentially, homebuyers will need to save a bigger deposit to be able to purchase. We will wait to see whether all the other major lenders also change their policy.

For the full story, click the link below
http://www.news.com.au/money/property/westpac-requires-higher-deposit-for-first-home-loans/story-e6frfmd0-1225822160592

If you are looking for guidance and assistance in the property market, I can be contacted below

Dean Carver
Solicitor
Solicitors Property Centre
http://www.spc.net.au/

Home Ownership becoming more difficult for Gen Y

To all our readers, I hope you have enjoyed a Merry Christmas with family and friends.

I have recently read an article that points to difficult times ahead for Gen Y in being able to purchase a home of their own. Gen Y is often considered to be people born between the late 1970's and 1992.

The article published in the Daily Telegraph can be read here.......click link below
http://www.news.com.au/money/property/home-ownership-difficult-for-gen-y/story-e6frfmd0-1225812581808?from=public_rss

The article makes particlur reference to the fact that Gen Y's are failing the lenders job stability test and that 1 in 10 mortgage applications are being knocked back by the Banks. The article goes on to say "while it is not impossible for job hopping Gen Yers to get a loan, it is certyainly more difficult".

Given that the Banks are slowly tightening their lending criteria it is only going to get tougher to get a loan in the future. The Solicitors Property Centre have developed a Home Ownership Program for tenants who would love to own their own home. The Program is designed to help a tenant make the transition to home ownership with full guidance and support from a team of property lawyers that will "hold your hand" through the process.

For a free complimentary discussion to see whether the Home Ownership Program will suit your situation, contact Dean Carver at Solicitors Property Centre on (02) 9773 4550

Contact
Dean Carver
Solicitor
http://www.spc.net.au/

Please note that all comments are the opinion only of Dean Carver, and readers should obtain their own independent legal and financial advice that applies to their particular situation. 

Reserve Bank Increases interest rates

The Reserve Bank has increased its cash rate from 3.25% to 3.5%. Most major Banks have lifted their varaiable rates inline with the Reserve Banks decision to increase rates.

Federal Treasurer has indicated that interest rates will not stay low forever.

The rise in interest rates can only have a dampening effect on the real estate market. However, that said, I can only see the housing prices fall when supply is increased. Housing prices will start to fall, if and when, the Governments decide to release land for development and developers and builders start to come back into the market.

The Banks have started to tighten their lending criteria and this will make it difficult for homebuyers to obtain a home loan unless buyers have a significant deposit.

For more commentary on the interest rate rise.....see link below
http://www.news.com.au/business/money/story/0,28323,26299332-5016110,00.html

Opinion by Dean Carver
Property Lawyer - Solicitors Property Centre

REMINDER to Buyers - First Home Owners Boost will halve after 30 September 2009

Just a general reminder that the current First Home Owners Boost of $7,000 will halve from $7,000 to $3,500 after 30 September 2009.

If you are a first home buyer and eligible for the Commonwealth First Home Owners Grant, that means the total Grant will be reduced from $14,000 to $10,500 for established homes.

For more information you can check out the NSW Governments Home Buyers websire. See link below

 http://www.homebuyer.nsw.gov.au/first_home_benefits.html

Also see the NSW Office of State Revenue website - http://www.osr.nsw.gov.au/

Best wishes

Dean Carver
Solicitor
Solicitors Property Centre - Sydney

How the Internet is reshaping Australian Real Estate

Nielsen Online have released a report that explores the way in which Australians search for and research real estate. The findings reveal that 87% of property buyers head to the internet to search for and support their research process and a similar proportion of renters (85%) do the same.

To read the News Release by Nielsen Online .... click below

www.nielsen-online.com/pr/pr_071108_AU.pdf

Dean Carver
Solicitor