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fees for taxation purposes.
Insurance
Your lender will require you to organise
building insurance (except in the case of strata
title properties). Most investors also invest in
landlord insurance.
Final inspection
Arrange for a final inspection (just prior to
settlement date) with the real estate agent.
Check for all inclusions in the contract for sale
and that they are in working order. Check
light switches, power points, air conditioners,
exhaust fans, hot water, swimming pool
equipment and security system and request
copies of all manuals for stove, dishwasher and
other relevant inclusions.
If your property is interstate perhaps have a
friend inspect it for you or jump on a cheap
flight and do it yourself. Costs associated may
be claimed with your tax return.
Settlement
Your conveyancer/legal representative will
attend to settlement. This is the day on which
the balance of the purchase price is paid to
the vendor. Stamp duty and lender’s mortgage
insurance will also have to be paid. You can
collect the keys from the real estate agent
once settlement has been advised.
If something goes wrong
If you have signed a contract to buy a property
it may be a costly exercise to withdraw even
if you have not reached settlement. If the
cooling off period has passed, the contract is
binding. If you wish to get out of the contract
you may be liable to pay compensation to the
vendor. The amount will depend on the loss
suffered by the vendor and is usually based
on the amount it would take to re-sell the
house including any loss on the subsequent
sale. Read your contract carefully and be aware
of the consequences of defaulting on the
contract. If you do not wish to proceed with
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