Expert Kiani Mills reveals five traps buyers fall into when settling on a property

0

A real estate expert reveals five traps buyers fall into when settling – and they could cost YOU thousands

  • Kiani Mills, 35, built a multi-million dollar transfer building from the ground up
  • Helps clients avoid costly mistakes by carefully reviewing contracts
  • She revealed five of the costliest mistakes people make on property

Kiani Mills, 35, revealed the five pitfalls to avoid when buying a new property

A transfer agent who built a multi-million dollar business empire after starting out with a “$1,600 loan from grandma” has revealed his top tips for saving money when investing in real estate.

Speaking to FEMAIL, Kiani Mills, 35, described five mistakes buyers make that can cost them thousands of dollars.

The number one tip is to have all contracts reviewed “by a professional,” she said.

“It’s a huge mistake, which could cost you thousands of dollars,” she said.

“Major red flags can be raised when performing a contract review. Illegal building work, incorrect boundaries, faulty construction, coating, water leaks or local council requirements.

Kiani also advises clients to use their “entrepreneurial spirit” when inspecting a property instead of simply “falling in love” and blind to serious issues.

The mother-of-two built her landlord empire from the ground up - and helped people create impressive property portfolios

The mother-of-two built her landlord empire from the ground up – and helped people create impressive property portfolios

“The condition the property is in on the day you sign the contract is the condition it will be returned to you upon settlement. Your initial inspection is the last time you will see the property, so inspect it carefully,” she said.

‘Check lights, windows, stove, gas appliances, oven, extractor fan, shower, taps, locks/keys, remotes, air conditioning/heating – everything. If it is broken on the day you sign the contract, it will be broken on settlement – ​​unless it is recovered,’ she said.

Kiani also says it’s important to check the property’s zoning — and understand what that means.

“Check the zoning, location and size of the property you’re buying, especially if it’s an apartment. Some banks won’t lend money to a property in a commercial area or mixed-use area, if the type of property you’re buying is residential,” she said.

“They may also not lend depending on the size of the apartment, if there are any coating or construction faults, or if it is located in certain areas.”

She will be forever grateful to her grandmother who gave her $1,600 to start her new life - getting a transfer certificate

She will be forever grateful to her grandmother who gave her $1,600 to start her new life – getting a transfer certificate

Kiani says it’s also important to understand auction rules when buying a new property.

‘A deposit of 10% is due and payable on the day. There is no cooling off period, you cannot change your mind. The settlement date is negotiated after your win. However, know the suppliers’ requirements – and be flexible.

“I had a case where my client was the winning bidder at an auction and as such continued to negotiate with the seller after the auction. It turned out that the Seller needed 30 day settlement as he had purchased another property and needed to match settlement dates.

‘My client needed to sell his property and therefore needed a 120 day settlement. As a result, they couldn’t agree on a settlement date and the property essentially passed,” she said.

The fifth tip is to check for probate and if the property has ever been subdivided.

“The easiest way to determine if the transaction is a little ‘different’ is to ask the agent what settlement the seller would like,” she suggested.

“It’s always good to know, to make sure your terms of settlement match the sellers…However, if the agent says ‘property will be ready in ***days’ or ‘settlement is expected in approx** *month”. This is a good indication that there is not yet a fixed settlement term, and as such the settlement date may be subject to the registration of the subdivision plan, or subject to the registration of the concession of homologation.

How to save thousands when buying a property:

1. Have your contract reviewed by a professional: Not having the contract reviewed by a professional before signing is a serious mistake, which could cost you thousands of dollars.

Major red flags can be raised when performing a contract review. Illegal building work, incorrect boundaries, faulty construction, coating, water leaks, local council requirements, etc.

2. Take off the rose-coloured glasses: Use your “entrepreneurial spirit” when inspecting the property. The condition the property is in on the day you sign the contract is the condition it will be returned to you upon payment. Your initial inspection is the last time you will see the property, so inspect it carefully. Check – lights, windows, stove, gas appliances, oven, hood, shower, faucets, locks/keys, remotes, air conditioning/heating. If it is broken on the day you sign the contract, it will be broken at the time of settlement – UNLESS you collect it. Ask your donveyancer for an inspection checklist to make sure you don’t miss anything.

3. Check the zoning, location and size of the property you are buying. This is especially important if it is an apartment, some banks will not lend money to a property in a commercial area, or mixed use area, if the type of property you are buying is residential. They may also not lend depending on the size of the apartment, if there are any coating or construction faults, or if it is located in certain areas. The bank lends you money on an asset that it will hold. You must ensure that the property complies with your bank’s lending requirements. Especially if you plan to buy at auction.

4. Know the auction rules. A 10% deposit is due and payable the same day. There is NO cooling off period, you cannot change your mind. The settlement date is negotiated after your win. However, know the suppliers’ requirements – and be flexible. If you use a government deposit system, you may not be able to bid. If you don’t have quite 10% deposit, you may not be able to bid. If you do not have pre-approval in place or have not received confirmation from your broker/banker, you may not be able to bid.

5. If the property is not yet subdivided or subject to probate, it may be a very different transaction, with different timeframes and requirements – know what you are buying. The easiest way to identify if the transaction is a little “different” is to ask the agent what settlement the seller wants. This is always good to know, to make sure your terms of payment match the sellers… However, if the agent says “property will be ready in *** days” or “payment is expected in approximately *** month “. This is a good indication that there is not yet a fixed settlement term and as such the settlement date may be subject to subdivision plan registration or grant registration. of approval.

Source: Kiani Mills

Share.

Comments are closed.