Buying, selling, building or investing?
Buying, selling, building or investing in Gold Coast Real Estate? Here you will find a range of valuable information about the Gold Coast's property market. We've made it easy to find the property that's right for you. Check legal considerations, costs, statistics and more.
Our regular investment tips and property news will help you make a well-informed decision.
Steps involved in buying real estate
The Real Estate Institute of Queensland (REIQ) recommends following these basic steps when you are buying real estate on the Gold Coast.
- Find out your borrowing capacity from banks or financial institutions.
- Choose a location where you would like to buy property.
- Research the history of property sales in your chosen area.
- Look for a property through real estate agent's offices, listing magazines, newspapers and property websites.
- Approach the selling real estate agent and inspect the property.
- If the property is suitable, decide on the price that you are prepared to offer.
- Obtain from the selling agent Form PAMD 27a Disclosure to Buyer.
- Obtain Form PAMD 30a Warning Statement from the selling agent. This form concerns the legal provision for full vendor disclosure. It contains information about the property that the vendor must attach to the contract. If unexpected problems surface after the exchange of contracts, the contract can usually be cancelled or rescinded. At this time you should seek legal advice regarding whether or not to waive the five-business-day cooling off period before signing the Contract of Sale.
- Make an offer and sign a Contract of Sale noting any special conditions. Make the contract subject to building and pest inspections.
- Pay your deposit to the selling agent and you will then receive a trust account receipt.
- The agent gives the Contract of Sale to the seller.
- The five-business-day cooling off period can be waived by signing the PAMD Form 32a Lawyers Certification. If they did not waive this right, the buyer may terminate the contract within five-business-days of signing it. There is a termination penalty of 0.25% of the purchase price stated on the signed contract. This five-business-day period does not apply to properties sold at auction.
The following forms are relevant to the buyer:
- Form PAMD 27c - Selling Agent's Disclosure to Buyer
- Form PAMD 30a - Warning Statement
- Form PAMD 32a - Lawyer's Certifications
The REIQ Standard House and Land Contract have been prepared in accordance with relevant legislation and the Queensland Law Society. Queensland real estate agents commonly refer it to.
Buying a property
Location
There are many factors to consider when deciding where to buy property.
If you are buying a property to live in, you need to find out the location of:
- The closest shopping centre
- Public transport
- Parks and other facilities
- Schools if you have children
- Recent property growth figures
- The demand for rental properties in that area
- The facilities that will appeal to the rental market
Buying off the plan means you are purchasing a property that has not been built yet. Generally you will be able to view detailed plans, models or displays of the proposed building.
The types of properties generally available off the plan are inner city unit developments, and house and land packages in the outer suburbs.
Usually 10 percent of the purchase price is paid when the contracts are exchanged. The balance is paid once the building has been completed. This 10 percent is treated as a deposit and is usually kept in an interest producing trust account. Generally the interest accrued is shared between the purchaser and the vendor.
It's less expensive to buy off the plan than it is to purchase a property that has already been built. This is because when the developer has your money their financial risk is lower.
One disadvantage is you must pay the ten percent balance a long time before you can move into your home. There is also the risk that the builder or developer may go out of business before your property is finished, and you may lose your deposit.
Before you commit to buying off the plan, find out what is included in the purchase price. Specifically ask about fittings, fixtures, carpets and painting. Sometimes they will be included in the price, but not always.
If particular brands for fittings have been mentioned, make sure they are specified in the contract. Keep in mind that under some conditions (which should be covered in your contract), the builder can use other brand fittings if they are of equal quality.
Always research the developer before you sign the contract. Ask if they have built other properties that you can have a look at. This will allow you to see the quality of their finished work. You should also check with the Building Services Authority to see if complaints have been lodged about the developer or builder.
The cost of buying real estate
The REIQ advise that the following are the main costs involved when you buy property:
There is also a payment to the seller if you choose to terminate the contract during the five-business-day cooling off period.
You are not required to pay goods and services tax (GST) on the sale price of a property.
Price of the property
You are able to make an offer that is less than the advertised price.
The real estate agent presents the offer to the seller who will either accept it or reject it.
The price that the buyer and seller agree upon is countersigned on the Contract of Sale.
Stamp duty
Stamp duty is tax that is imposed on written documents that record or affect certain types of financial or legal transactions.
Stamp duty is chargeable on documents or statements if they are:
- Signed or executed in Queensland
- Signed or executed outside Queensland, but relate to property situated in Queensland
The percentage scale will vary according to the sale price and whether or not the buyer intends to live in the property, or rent it out as an investment. Depending on the nature of the transaction, certain concessions and exemptions are available.
Your solicitor will obtain the appropriate rate. The buyer pays the solicitor, who then arranges payment to the government authority.
For more information about stamp duty, visit the Queensland State Government's website at www.osr.qld.gov.au or phone 07 3227 8733 or 1300 301 342.
Legal costs and searches
The REIQ strongly encourages buyers to seek independent legal advice before signing a Contract for Sale.
The Queensland State Government's Property Agents and Motor Dealers Amendment Act 2001 has introduced a number of forms that affect the buyer and the seller.
Factors the buyer should understand include:
- The appropriateness of accepting or waiving the five-business-day cooling off period
- The REIQ Contract of Sale
- The Selling Agent's Disclosure to the Buyer Statement (Form 27a)
After a buyer has signed the appropriate forms and the Contract of Sale, they are advised to undertake certain searches, including:
- A title search establishing the true owner of the property
- A local government building report on the legality of existing structures on the property
- A local government search on the zoning of the property indicating any restrictions on the property
- The encumbrances on the property easements
It is advisable to compare the fees being offered by a number of solicitors.
Good referrals and past experience should be considered when choosing your legal representative.
It is possible for a buyer to undertake these activities on their own, however the REIQ strongly recommends using qualified solicitors for conveyancing.
Visit the Queensland Law Society website for further details about how to find a qualified solicitor. www.qls.com.au
Valuation report
An independent valuation report on a property informs the buyer of a property's true worth.
Sometimes the seller will obtain this report for the buyer at his or her own cost, however the REIQ recommends that buyers obtain their own independent valuation.
Contact the Australian Property Institute on 07 3832 3139 for the names of licensed valuers.
Pest and building inspection reports
Buyers can make their Contract of Sale conditional on the basis of a satisfactory building and pest inspection reports from a licensed professional. Queensland legislation requires an inspector to be licensed by the Building Services Authority.
Visit the Building Services Authority website for more information. www.bsa.qld.gov.au
Termination of a contract under the five-business-day cooling off period
If a buyer terminates a Contract of Sale during the stipulated five-business-day period, they will have to pay the seller 0.25% of the property price on the contract. There is no additional goods and services tax (GST) payable on this amount.
If the buyer has elected to waive the cooling off period, they cannot terminate the contract.
Buying as an investment
While the decision to buy a family home is usually very emotive, buying investment property should be based on a logical and calculated process.
To minimise the risk of getting stuck with a bad investment, the REIQ recommends buyers research the area they intend to buy in.
The REIQ advises investors to:
1. Check the local newspapers
Find properties with similar features and compare their prices. This simple research will be a valuable guide to determining what is on the market, and at what price.
2. Talk to a real estate agent in the area
A good agent should be able to provide buyers with an informed opinion on prices and market trends.
They should also be aware of the property types that tenants are looking for, and how much particular types of property should return in rent.
A buyer can also pick up the Realtor magazine from any member office of the REIQ.
This colour pictorial magazine shows homes for sale by region, and is distributed throughout the state.
3. Contact your local council and Main Roads Department
It is recommended that potential investors contact the local council and Main Roads Department to find out whether any major developments are planned for the area.
Your perfect investment may not be so perfect if a freeway overpass is being planned for your back yard.
In many cases, a solicitor will automatically supply you with a list of all the searches necessary for a sensible purchase. However, it's worthwhile to ask for a more extensive list of searches.
4. Research the body corporate (if applicable)
If you're investing in a unit, townhouse or a lot in a community title scheme, it's worthwhile getting a reputable search agent to appraise the body corporate records. The agent will provide you with a comprehensive report on the state of affairs of the building.
5. Seek financial advice
Seeking the advice of your accountant, financial adviser and bank is important. Each will assess your financial situation using different criteria. These assessments will provide a broad picture of the financial feasibility of your investment.
If you're a first time investor, property investment should be considered and managed as part of an investment portfolio. Unless you're an experienced property investor, independent advice will prove invaluable.
Like any other investment, you need to consider:
- How much money you can invest
- What the goal of the investment is
- How long you want to hold the investment
6. Re-evaluate regularly
Another important factor to consider are the property and the market conditions affecting your investment. It must be monitored and re-evaluated on a regular basis.
While there are many avenues of investment, property is still a stable and financially rewarding investment.
The buyer must be aware of what sort of return they can expect from their investment. Purchasing the right property makes it easier to rent out and sell when the need arises.
Buying 
