Before purchasing a property it is important to make sure that previous owners have obtained appropriate permits for any additions or improvements. I recently inspected a property in Melbourne’s outer western suburbs that had what appeared to be a recently constructed extension to the rear of the property. The addition was not well designed as…
The practice of selling agents deliberately and substantially underquoting the likely selling price of an auction property will never be eradicated. This strategy has been implemented for the purpose of attracting buyers to inspect a property and potentially become involved in the bidding process. In essence it is based on deception similar to bait advertising.…
Carbon monoxide poisoning from faulty gas appliances has killed nine Victorians in the past decade. The main causes of these deaths have been faulty or badly maintained gas heaters. It has become known as the silent killer, as carbon monoxide gas can’t be seen and does not have a smell. Energy Safe Victoria (ESV) is…
State and local governments have introduced a greater number of controls on the use of land over the past five years. Also, more land is now subject to overlays than ever before. Overlays are a restriction on the use of land in a designated area. In many cases, if a property is affected by an…
“I’m singing in the rain, just singing in the rain, what a glorious feeling I’m happy again” This is what every property buyer should be singing if they are lucky enough to be inspecting a property while it is raining. Over 80% of domestic building faults are related to water. Hence when it is raining…
The idea that one real estate agent would oversee another real estate agent in the sale of a property seems absurd. Yet it happens: it’s called vendor advocacy. Vendor advocacy is a service whereby a real estate agent who calls himself a vendor’s advocate will appoint another real estate agent to sell a property. The…
Residential property investors should be extremely wary if contemplating buying real estate using a self managed superannuation fund structure (SMSF). This structure which has created a lot of media attention lately may prove to be a fad that burns many a property investor. At the time of writing more than 400,000 investors are running their…
The changes to the rules governing foreign investment in residential property announced by the assistant treasurer in April of this year have done nothing to benefit the Australian economy or struggling first home buyers desperate to enter the market. One of the more significant changes is that all temporary residents seeking to purchase existing property…
The standard Real Estate Institute of Victoria building defects clause that is used by real estate agents has proven to be ineffective by a recent decision of the Victorian Supreme Court. The clause states that a buyer can only avoid a contract of sale if a “major structural defect” is found. I have never agreed…
When buying off the plan the most important documents in the transaction are the plans and specifications. In this situation the purchaser is essentially buying two elements, the land and the plans/specification document. Unfortunately many buyers are not aware of the importance of getting these documents absolutely right. In the construction of a dwelling there…