nolans BUYING WITH US

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1 nolans BUYING WITH US

2 WE RE EXCITED TO HELP YOU WITH YOUR PURCHASE

3 WHAT TO EXPECT HANDY TIPS ON BUYING METHODS SIGNING ON THE DOTTED LINE LOAN REPAYMENTS STAMP DUTY CALCULATOR FIRST HOME BENEFITS & INCENTIVES

4 WHAT TO EXPECT

5 Borrowing Capacity When borrowing, allow for changes to your current circumstances. Keep a rainy day reserve by not over committing based on your current situation. Be wary of loans that have an increased repayment schedule at a later date. Don t just rely on what your current bank is offering. You never know what the future holds! Trust Your Instincts When you find the right home, it should feel right. Trust that feeling inside your stomach. The home that suits you, that is in your price range is the right home. Don t get too fixated on price, after all you will be living there long term. Good Neighbours = Good Friends Time your inspections right. Get familiar with the area and your potential neighbours. Think beyond your inspection and go to the area and the street at different times and days to see if there are any other factors you should be aware of. Be aware of sights, sounds and smells that could influence the area. External Influences Don t be overly influenced by the market. There is a saying in real estate that, the market is between your ears. Being influenced by the market is like taking a blind gamble on a horse race. But instead of horses, you re gambling with yours and your families future. If you find a home that you can afford and you feel comfortable with, then this should be your most influencing factor. A property purchase is a long term investment that historically has always shown long term growth. It s Up To You Allow friends and relatives to give you advice, but be sure that the final decision is up to you. The occupiers of the home should be the real decision makers. Check It Out Choose certified professionals for building and pest reports. Their job is to find faults. Take note of their findings, but don t allow minor faults in their report to ruin the possibilities of your purchase. Know What To Expect Purchasing a property can be a very exciting process; however it can also be a very confusing time as a prospective buyer. Different real estate agencies operate under different sets of rules and standards, so we would like to help you with the buying process should you choose to purchase a property through Nolans. If you find your new property with us, we will ask you to confirm the following details, enabling us to help you in the best possible way. 1. The purchase price that you will be paying for the property. 2. The payment method of the deposit e.g. cheque /money order/ bond. 3. The settlement period that you prefer 4. The name of your solicitor/conveyancer 5. Any special conditions or requests that you may have so that we can inform the property owner 6. The full legal names and addresses with contact phone numbers of all purchasers.

6 The best way to present a strong offer on any type of property is to put your offer in writing, on a contract and utilise the 5 day cooling off period. This clearly demonstrates to the vendor that you are a serious, genuine buyer. Making too low an offer can offend an owner and deter them from accepting your best price. Once an agreement has been made between a buyer and the vendor on price, settlement and conditions, the sale can proceed. To buy or sell a property, an exchange of contracts must take place. The exchange of contracts occurs when the purchaser and the vendor each sign an identical copy of the contract for the proposed property. The exchange of contracts can be made according to terms under either of the following two options: Unconditional Exchange (no cooling off period) means that the purchaser s solicitor has signed a 66W Certificate. This certificate waives any cooling-off period, and legally binds both parties immediately to the sale. This option is sometimes used in private treaty sales. This is final, and there is no turning back for either buyer or seller, similarly a property that is bought at auction also has no cooling off rights for the purchaser. The onus is therefore on the purchaser to check the property out thoroughly prior to exchanging contracts, however the risk is that while this is being done there is no obligation for the owner to sell to that buyer regardless of what has been agreed verbally. Option Two Exchange of Contracts subject to a 5 day cooling off period. As real estate agents, we can only exchange contracts with a cooling off period. The cooling off period allows 5 business days for the purchaser to organise inspections and reports and allow their legal representative to check the contract. The cooling off period commences upon exchange and terminates on the fifth working day at 5pm E.S.T. Weekends and public holidays are not included as business days. Option One

7 HANDY TIPS ON BUYING METHODS The signing of a 5 day cooling off period is a great way to purchase. This method helps to protect the purchaser against: The vendor pulling out of the sale Another purchaser paying more than their offer for the property (gazumping) With the contract exchanged, the purchaser has some control and time to ensure that everything is as expected. However, this protective method requires commitment by the purchaser by way of a small deposit, being 0.25% of the purchase price. the owner s solicitor and proceed with reports and reading of contracts with no determined time frame for exchange. CAUTION: If a prospective purchaser elects not to sign a contract with a 5 day cooling-off, the property will remain on the market, and anybody wishing to make an offer can do so. The agent and the vendor are under no obligation to inform the prospective purchaser of other interest and the property could be sold to another buyer without any further notice. If the buyer elects to rescind or cancel the contract within the cooling off period, the purchaser, on rescission or cancellation of the contract, forfeits the 0.25% deposit. This is paid to the owner as compensation for having the property off the market. When a purchaser does not wish to sign a contract without their solicitor s approval, Nolan Partners will issue the potential buyer or their solicitor/conveyancer with a copy of the contract and what is known as a Sales Advice. This contains all the relevant details of the sale. Your solicitor will then make contact with

8 SIGNING ON THE DOTTED LINE

9 Buying It is a legal requirement of Real Estate Agents that every offer put forward by a potential purchaser must be presented to the vendor. Although you may be a day or two ahead with your enquiries regarding a particular property, any other interested party is able to sign the Contract of Sale, under a cooling off period, as described in option 2 on page 5, securing the property for themselves. This then leaves you with no option to purchase. Your solicitor is powerless to act, as contracts are exchanged and in the case of a cool-off, this can be carried out by the agent, the vendor s solicitor, or the owners themselves. The fact is, although some solicitors may not want you to purchase using a cool-off period, it is the only way to actually secure a property and protect your purchase while you conduct necessary research and checks on the property. Weighing Up The Options If you ve found the right property, are you willing to take any risk of missing out? The necessary checks prior to signing a contract unconditionally (through the use of a 66W certificate) can take some time. Securing a purchase on a 5 day cooling off period is the most popular choice by buyers as it minimises the risk of another buyer coming along and securing the property before them. What Happens If There Are Multiple Offers? As a best practice measure, Nolan Partners receive all offers in writing using our prescribed form. This form also outlines the terms of your offer. In the event of multiple offers on a property, you will be invited to present your revised highest and best offer in writing, in line with our prescribed process. We appreciate this may seem extremely precautionary, however Nolan Partners follow best practice as outlined by NSW Fair Trading. Yo DID YOU KNOW? AGENTS MUST PRESENT EVERY OFFER TO THE VENDOR YOU CAN REMOVE THE RISK OF GAZUMPING BY SIGNING A CONTRACT WITH A COOLING OFF PERIOD AND PAYING A 0.25% DEPOSIT TO SECURE THE PROPERTY

10 LOAN REPAYMENTS monthly repayments at 5% over 30 years principle & interest Loan Amount Monthly Repayment Loan Amount Monthly Repayment $175,000 $939 $675,000 $3,624 $200,000 $1,074 $700,000 $3,758 $225,000 $1,208 $725,000 $3,892 $250,000 $1,342 $750,000 $4,026 $275,000 $1,476 $775,000 $4,160 $300,000 $1,610 $800,000 $4,295 $325,000 $1,745 $825,000 $4,429 $350,000 $1,879 $850,000 $4,563 $375,000 $2,013 $875,000 $4,697 $400,000 $2,147 $900,000 $4,831 $425,000 $2,281 $925,000 $4,966 $450,000 $2,416 $950,000 $5,100 $475,000 $2,550 $975,000 $5,234 $500,000 $2,684 $1,000,000 $5,368 $525,000 $2,818 $1,250,000 $6,710 $550,000 $2,953 $1,500,000 $8,052 $575,000 $3,087 $1,750,000 $9,394 $600,000 $3,221 $2,000,000 $10,736 $625,000 $3,355 $2,250,000 $12,078 $650,000 $3,489 $2,500,000 $13,421

11 STAMP DUTY CALCULATOR Property Value Rate Of Duty Property Value Rate Of Duty $195,000 $5,315 $675,000 $25,865 $200,000 $5,490 $700,000 $26,990 $225,000 $6,365 $725,000 $28,115 $250,000 $7,240 $750,000 $29,240 $275,000 $8,115 $775,000 $30,365 $300,000 $8,990 $800,000 $31,490 $325,000 $10,115 $825,000 $32,615 $350,000 $11,240 $850,000 $33,740 $375,000 $12,365 $875,000 $34,865 $400,000 $13,490 $900,000 $35,990 $425,000 $14,615 $925,000 $37,115 $450,000 $15,740 $950,000 $38,240 $475,000 $16,865 $975,000 $39,365 $500,000 $17,990 $1,000,000 $40,490 $525,000 $19,115 $1,250,000 $54,240 $550,000 $20,240 $1,500,000 $67,990 $575,000 $21,365 $1,750,000 $81,069 $600,000 $22,490 $2,000,000 $95,819 $625,000 $23,615 $2,250,000 $109,240 $650,000 $24,740 $2,500,000 $122,319

12 FIRST HOME BENEFITS & INCENTIVES

13 Supporting First Home Buyers The NSW Government s comprehensive package to improve housing affordability is focused on helping first home buyers. For first home buyers, this comprehensive package includes: abolishing stamp duty on all homes up to $650,000 give stamp duty relief for homes up to $800,000 provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000 abolish insurance duty on lenders mortgage insurance ensure foreign investors pay higher duties and land taxes no longer allow investors to defer paying stamp duty on off-the-plan purchases. Stamp Duty Relief The duty paid when buying residential property can be an obstacle for first home buyers. For those entering the market, the NSW Government has abolished this duty on new and existing homes worth up to $650,000. For properties valued at between $650,000 and $800,000, the duty concessions are gradually reduced. First Home Owners Grant (New Homes) First home buyers building a new property are entitled to a $10,000 grant on homes worth up to $750,000. First home buyers purchasing a new property worth up to $600,000 are entitled to a $10,000 grant. This policy aims to provide assistance to first home buyers and stimulate the construction of new dwellings. The $5,000 New Home Grant Scheme, which was available to other buyers including investors, has now closed. This information should act only as a guide. Further information can be found at or by contacting your Solicitor/Conveyancer.

14 Nolan's were great to deal with in purchasing our new home. Being a major purchase and a home we planned on living in for a long time - I had lots of questions I needed answered to help make our decision. They either had the answer on hand or were quick to sort and source the information from the Vendor, great communicators. I feel they quickly addressed concerns we had leading into exchange of contracts and worked tirelessly behind the scenes to get things sorted for a great outcome for both parties. Rachael Thank you Nolan's for a seamless and stress free purchase process. Everything has been handled very professionally! We are so excited with our new project and won't hesitate to contact you should we be buying or selling in the future. Thanks again Tim & Sharon

15 My interactions with Nolan Partners for my property purchase was very pleasant. They were easy to contact and have great communication skills, while they were patient in explaining everything to me as a new home buyer. Their honest opinions pertaining to the existing tenant and the property, I can vouch as being genuine. I found all their advice to be legitimate. Daniel Nolan's were a pleasure to deal with from start to finish. Their knowledge of the local area and surrounds gave us the confidence to make a decision that best suited our needs. They communicated with ease between all parties involved which ensured that the entire process ran smoothly. Their approachable nature and obvious enthusiasm and passion for their work is why I think Nolan's was the perfect agency for my family to deal with. We are glad we got the chance to work with Nolan's and I wouldn't hesitate in using their services again. Morgan & Janelle

16 nolans nolan partners estate agents