Insurance and Risk when buying property in Queensland.

I would like to raise the topic of Insurance and Risk when purchasing in Queensland.

DO YOU KNOW? When buying a property in Queensland the following applies:

The Property is at your risk from 5pm on the first business day after the Contract Date.

It is your responsibility to attend to any necessary insurance for the Property.

Please see below about insurance requirements:

Generally, it is recommended you make enquiries about insurance availability and cost before entering into a contract. Insurance can be expensive and, for some properties, may only be available in relation to certain risks. Despite the Property being at your risk, the Seller has an obligation until settlement to take reasonable care of the Property.

If the Property is damaged between the Contract Date and settlement (e.g. extreme weather event, fire or vandalism) you are still required to settle in accordance with the Contract (unless it is a dwelling or residential unit so destroyed or damaged as to be unfit for occupation). If the damage arises from the failure of the Seller to take reasonable care you may be able to seek compensation from the Seller.

If the Contract provides for risk to remain with the Seller until settlement you may still be required to settle in accordance with the Contract despite the damage (unless the damage is substantial or a residence is unfit for occupation). You are also unlikely to be able to make a claim on the Seller’s insurance or to insist the Seller make a claim.

If damage occurs, we recommend you obtain evidence of any damage (such as photos or video), including the source of the damage. In some circumstances you may gain the benefit of the Seller’s insurance by making a claim upon the Seller’s policy before taking early possession or completing settlement. We do not recommend that you rely upon this as:

a. the Seller may not take out insurance;

b. the Seller may cancel its insurance;

c. the event that causes the damage may not be covered; or

d. other factors may preclude recovery.

We strongly recommend that in all cases you take out insurance as advised below. You can arrange insurance by contacting an insurance broker or home insurance company directly. Advice on your insurance policy is outside the scope of our retainer.

If you are purchasing a residential house, not in a Community Titles Scheme, we recommend in all cases you arrange property insurance cover for house, contents and public liability.

If you are purchasing a lot in a Community Titles Scheme, please seek further advice.

If you are obtaining finance it will be necessary for your financier to be noted on the policy as mortgagee. Please arrange for your insurance broker or home insurance company to attend to this for you.

Source: Harmony Lawyers |© Lexon Insurance

Interviewing prospective buyer's agents

Interviewing prospective buyer's agents is a crucial step in finding the right person to assist you with your property purchase.

I hope these questions and answers will help you assess and compare myself with other buyer's agents based on qualifications, experience, ethics, and compatibility with your needs.

Here's a list of the top 12 questions to ask.

1. What type of license do you hold?

Answer: I hold a Full Real Estate License, which allows me to provide comprehensive assistance and support throughout the buying process. Having this license ensures that I am well-versed in all aspects of real estate transactions and can handle your significant purchase with expertise and professionalism.

2. How much experience do you have in the real estate industry?

Answer: I have been working in the Australian real estate industry for over 23 years, and became a buyer’s agent in 2010. With a strong track record of successful property purchases and satisfied repeat clients. I have what it takes to protect you in your next property purchase.

3. Are you an exclusive buyer's agent, or do you also sell property?

Answer: I am an exclusive independent buyer's agent, fully committed to representing buyers only. I have no conflicts of interest and do not sell properties.

4. Do you receive commissions from any third parties?

Answer: As an independant buyer's agent, I don't receive any commissions from third parties. My sole focus is on serving the best interests of my clients, the buyers!.

5. Do you or your company hold professional indemnity insurance?

Answer: Yes, both I and my company carry a Professional Indemnity insurance policy, ensuring protection for my clients in case of any unforeseen negligence.

6. What previous purchases have you made, and what experience do you have?

Answer: I have successfully facilitated many property purchases. Happy to provide you with examples.

7. How extensive is your network of contacts in the real estate industry?

Answer: I have built a wide network of industry contacts over the years, including real estate agents, property developers, and industry professionals. This network allows me to access off-market opportunities and gain valuable insights.

8. What is your fee structure?

Answer: My fee structure is based on a flat fee depending on the scope of services you require. For complete transparency my fee structure can be found HERE. NO hidden fees, you will know exactly what the fees are prior to engaging my services.

9. Do you own any property yourself?

Answer: Yes, I do own property myself, both PPR and investments. I believe in the value of real estate investment and have personal experience in navigating the property market.

10. Why should I use your services over another buyer's agent?

Answer: My extensive experience, exclusive focus on buyer representation, and strong network of industry contacts set me apart. I am committed to providing personalized service, from day one, through to you or your tenants moving in. Delivering the best possible outcomes for my clients.

11. Can I talk to some of your previous clients for testimonials?

Answer: Of course! I'll be happy to provide you with references from my previous clients who can share their experiences working with me. You can read some testimonials HERE

12. Can I cancel the agreement if my circumstances change or I'm not happy with the service?

Answer: Yes, you can cancel the agreement at any time if your circumstances change or if you are not satisfied with the service. Client satisfaction is a priority, and I aim to be flexible in meeting your needs.

Remember, this is an important financial decision, and finding the right buyer's agent can make a significant difference in your property purchase process.

Take your time and choose wisely.

Things You Should Know When Researching to Buy A Property

Buying a property is a significant financial commitment that can have a lasting impact on your life. 

Buying a property can be dauting and a big step in anyone's life, it's essential to approach the process with a level head. Here are some tips to help you make informed decisions when researching to buy a property:

1.  Determine Your Budget: To avoid disappointment before you start dreaming of that prefect home or investment, you need to know how much you can afford to spend. This means taking an honest look at your finances and working out your budget. Consider factors such as your earnings, savings, debts. You can use online calculators to get an estimate of what you can afford, but it’s always best to talk to a professional mortgage advisor.

2. Consider Additional Costs: Buying a property involves more than just the purchase price. You should also consider additional costs such as stamp duty, property rates, body corporate/strata fees, maintenance costs, and insurance premiums. These costs can have a significant impact on your budget, so make sure to include them in your calculations.

3.  Your team of professionals: Seek advice from professionals like an Accountant, Financial planner, Solicitor/Conveyancer, Finance broker/Banker, and Independent licensed buyer's agent to ensure you're well-informed throughout the process.

4. Decide what type of property: Consider your plans and goals for the property and the type of property that will best suit your needs. Will it be low maintenance? Will there be extra outgoings? Will it offer you organic capital growth or can you manufacture capital growth? If it is an investment what type of yield? 

5. Research the Location: When buying a property, it’s important to research the location thoroughly. Whether you’re buying a home for yourself or as an investment, you need to consider factors such as proximity to amenities, crime rates, schools, transportation, and the job market. Researching the location can give you a better idea of what to expect in terms of property value and quality of life.

6. Prepare for property viewings: It is important to view as many properties as you can, do not limit this to open homes, choose different times of the day, different days of the week. Do your research on what has sold, (to do this well, you need to have viewed them prior to them selling). Check the history of the property you are interested in.

7. Building and Pest Inspections: Before you commit to an offer, make sure to get the relevant property inspections carried out. This can help you uncover any issues with the property that could impact its value or safety. A home inspection can also give you information on maintenance and repair costs, which can help you make an informed decision.

8. If it is an investment property: Consider any depreciation you may be entitled to; this is not restricted to new builds.

9. Pre settlement inspections: Always, carry out a pre settlement inspection because once the settlement has occurred it can be too late to rectify any issues, regardless of the extent of them.

Buying a property is a significant investment, so it’s important to do your due diligence and make informed decisions. By following the tips above, you can ensure that you’re on the right track to buying the right property.

Recommended Professionals to have on your side!

Before buying a property, whether that is an investment or home which can be one’s biggest investment, it's important to have the right professionals on your team. Here are some key professionals to consider:

• Accountant: It's always best to talk to your accountant first especially if it is an investment property you plan to buy to ensure that you have the correct information before proceeding with your property search. They can provide important information about tax implications, GST, CGT, and land tax.

• Mortgage broker/financier: Before you start your property search, it's essential to check your financial situation and find out what your lending capability is. A good mortgage broker or financier can help ensure that your finances are in order and that the transaction goes through as smoothly as possible.

• Financial planner: If you're buying for investment purposes, especially within a self-managed superannuation fund (SMSF), a financial planner can be a great asset. They can help you set up your investment strategy so that it works for your retirement and discuss the benefits of having property within your SMSF.

• Solicitor/Conveyancer: Having the right solicitor or conveyancer is crucial. They will work with all the other professionals on your team to ensure that everyone is on the same page. Getting them on board before you sign any contracts is the best thing you can do.

• Licensed Buyer's Agent: A licensed buyer's agent can be a valuable resource in the real estate market. They can provide valuable advice that will make your property hunt more efficient and cost-effective. By working together, you can ensure that you find the right property without the stress and hassle of endless searching and overpaying.

Remember, communication is key. As the purchaser of the property, it's important to discuss your venture with all of these professionals and ensure that everyone is on the same page. You are the integral part of this process, after all, it is your money that you are spending.