There RBA has lowered interest rates today to a low 0.75% which means most people get some breathing space and a little more disposable income that should boost the economy. The RBA has lowered interest rates 3 times this year which lowered the interest rate by 0.75 pints from the start of this year.
A bold move by RBA to drive the economy. And effective one too for the property market, which has seen a steady recovery and growth at least in the south eastern suburbs. Being involved in property conveyancing, RET conveyancing has been trough the roller coaster of the property market for over 35 years and from the current increased activity levels we are confident that property is on the way to another boom. Today's interest rate cut will only add fuel to the fire and will give investors more confidence to enter. There are significantly more signed contracts of sale coming in now to our conveyancing office, more contracts reviewed and the prices mostly are above expectation.
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What is E- Conveyancing?
Electronic Conveyancing will soon replace traditional paper settlements in Victoria. The system eliminates the need for a physical settlement with bank cheques and documentation, and the lodgement of paper instruments with Land Victoria. It is effectively a virtual settlement room that stores the data required for lodgement of dealings at Land Victoria and the transfer of funds upon settlement. At a nominated date and time, the funds are transferred and data lodged. (Source: Law Institute of Victoria) What are the benefits of e-Conveyancing? Buying and selling property starts online – with website searches, mortgage calculators and other online tools. However, until recently, the conveyancing process was mostly completed offline. Paperwork and postage increased the risk of errors and delays. Greater certainty Manual processing is prone to error...why take the risk? PEXA's online document checks bring you greater certainty of successful, on-time settlement. Get your money fast Why wait days for cheques to clear? With online settlement through PEXA, your sale proceeds will be processed as cleared funds to your nominated accounts. Easier for you PEXA makes the experience of settling easier for you. With PEXA, there is no longer any need to physically obtain and sign a paper transfer document. Buying just got a whole lot easier... On-time settlement PEXA's automatic online document checks give you greater certainty that your settlement will occur as scheduled, allowing you to take ownership of your new property. Peace of mind In the manual world, documents registering your ownership are typically not lodged until days or sometimes weeks after settlement. With PEXA, this happens instantly giving you peace of mind. No more bank cheques PEXA eliminates the need for bank cheques, saving you time and money Stay informed with SettleMe. SettleMe is a free app powered by PEXA that keeps you informed throughout your settlement process. It’s available exclusively to buyers and sellers represented by PEXA-registered lawyers and conveyancers – US!. SettleMe helps you stay organised with a customised checklist. It also sends instant alerts via SMS or email about the status of your settlement. (Source: PEXA Australia) Getting Ready for Settlement DaySettlement day is the exciting day when you become the legal owner of your property. This day should be smooth sailing as we, as your conveyancer would have made all necessary preparations to ensure an easy transaction. What is settlement? Settlement is the legal term for what occurs when ownership is transferred from the Vendor to the Purchaser. You will not need to attend settlement. We will attend as your representative and will hand over all necessary documents. As the law changes, paper settlements are being replaced by electronic settlements taking place online via a settlement platform called PEXA (Property Exchange Australia). This will soon entirely replace the paper process. We are experienced and certified to conduct electronic settlements. What happens on settlement day? Settlement day is an exchanging of Transfer and Title Deed documents and of course, money! In a Purchase settlement, your conveyancer will hand over the balance of funds owing in exchange for the Title Deed of the property. This is the evidence that you now own the property. If you are taking out a loan/mortgage on the property, then your financial institution will also be present at the settlement and will provide bank cheques to the Vendor’s representative. Cheques for Council Rates, Water charges and other property outgoings are handed over so that you have a clean slate of all charges when you take over the property. In a Sale settlement, if a bank holds a registered mortgage over the property, they will also attend settlement to collect loan funds owed to them in exchange for providing a Discharge of Mortgage document. As your Conveyancer, we will ensure all funds and documents handed over are correct and in accordance with the Contract of Sale. Rebalancing the off the plan stamp duty concessionAbout the initiative
Property owners that keep their property vacant effectively withdraw supply of occupiable properties from the market, thereby increasing pressure on prices and rents. The Vacant Residential Property Tax is intended to encourage these owners to make their property available for purchase or rent, allowing Melbourne’s current housing stock to be used efficiently. The tax will apply to the inner and middle areas of Melbourne, where the issue of housing affordability is most pressing. There will be a number of practical exemptions applied, recognising there are some legitimate reasons for a property being left vacant. The framework for the tax will be subject to consultations with property groups and the community. When does the Vacant Residential Property Tax start? The Vacant Residential Property Tax will apply from 1 January 2018. The transition arrangements for 2017 will be subject to consultation. How will vacancy be reported? The tax will be incorporated into the land tax legislative framework. Consistent with this framework, liability for the vacant residential property tax is self-reporting. That is, property owners are expected to inform the State Revenue Office when their property triggers the tax. The State Revenue Office will also undertake monitoring and compliance activities. How is the Vacant Residential Property Tax calculated? The Vacant Residential Property Tax will be a 1 per cent tax on the capital improved value of the taxable property. The capital improved value of a property is the value of land and buildings as determined every second year as part of the council valuation process. The capital improved value of your property is displayed on your council rates notice. For example, if the taxable property has a capital improved value of $500,000, the applicable tax will be $5,000. Who will have to pay the Vacant Residential Property Tax? The Vacant Residential Property Tax will only apply to the owner of a property that is unoccupied for more than six months within a calendar year. The details of the tax are still subject to consultations with stakeholders. Are there any exemptions? There will be a number of practical exemptions applied, recognising there are some legitimate reasons for a property being left vacant. These include properties used as holiday homes by those with a separate principal place of residence, those who need a city unit for work purposes, deceased estates, and homes owned by Victorians who are temporarily overseas. The list of exemptions will be finalised in consultation with industry and property groups. Does the Vacant Residential Property Tax apply to all properties in Victoria? The Vacant Residential Property Tax will only apply to vacant properties located in the inner and middle suburbs of Melbourne. Any vacant properties outside this area will not be subject to the tax. The local council areas where the tax is applicable is listed in Table 1, below. Table 1: Local council areas where the Vacant Residential Property Tax will be applicable Banyule Bayside Boroondara Darebin Glen Eira Hobsons Bay Manningham Maribyrnong Melbourne Monash Moonee Valley Moreland Port Phillip Stonnington Whitehorse Yarra How can I find out more? There will be a period of consultation with industry bodies over the coming weeks to ensure the final design of the Vacant Residential Property Tax is appropriately targeted. Once the consultation process is complete, more detailed information about the tax will be announced. About this initiative:
From 1 July 2017, first home buyers purchasing properties valued below $600,000 will be exempt from paying stamp duty. Further, first home purchases valued between $600,000 and $750,000 will receive a concession applied on a sliding scale. It will be available for new and established home purchases. This initiative gives first home buyers across the state a helping hand, by substantially reducing the upfront cost of purchasing a home. How will it work? The exemption and concession are available for new and established home purchases and will be applicable to contracts signed from 1 July 2017. What are the criteria to qualify for an exemption or concession? • The home must have a dutiable amount of less than $600,000 to receive a stamp duty exemption. • A concession applies on a sliding scale for purchases with a dutiable amount between $600,000 and $750,000. • The dutiable amount of a property is generally the greater of the purchase price or market value, minus any deductions (such as a deduction for an off-the-plan the purchase). • The purchaser and the purchaser’s partner must be first home buyers, consistent with the definition under the First Home Owner Grant Act 2000. • The purchaser must be an Australian citizen or permanent resident (New Zealanders holding a special category visa are considered permanent residents if they are in Australia at the time of settlement). • The purchased property must be used as the purchaser’s principal place of residence for a continuous period of 12 months, commencing within 12 months of possession of the purchased property. Prospective first home buyers can contact the State Revenue Office on 13 21 61 to find out more about their eligibility. How many people will be helped? Around 25,000 first home buyers will benefit each year and be able to contribute more towards the equity of their home and reduce their mortgage payments. How can I find out more? First home buyers purchasing property valued up to $750,000 will need to fill the appropriate documentation when completing the purchase. (For more information on applying for the concession, contact the State Revenue Office on 13 21 61 or visit http://sro.vic.gov.au/first-home-owner.) The exemption and concession are in addition to the First Home Owner Grant (FHOG) (for more information on the FHOG, see the FHOG Fact Sheet on www.sro.vic.gov.au). About this initiative
From 1 July 2017, the off the plan stamp duty concession will only be available for those who qualify for the principal place of residence stamp duty concession or the first home buyer stamp duty exemption/concession. The concession will no longer be available for other purchases, such as residential investment properties and commercial properties. This gives owner-occupiers a competitive advantage against investors, and aligns with the Government’s goal of supporting first home buyers. The Government is using the savings from this initiative to fund the changes to stamp duty for first home buyers. What is the off the plan stamp duty concession? The off the plan stamp duty concession deducts from the contract price the cost of any construction or refurbishment which occurs on or after the contract date. This means that the dutiable amount is the value of land and improvements as at the contract date. For example, for the purchase of a house and land package, where construction has not commenced, stamp duty is levied on the land component of the property only, thereby substantially reducing a buyer’s stamp duty liability. How will the initiative work? For contracts entered into from 1 July 2017, only property purchasers who intend to live in their property will be eligible for the off the plan stamp duty concession. These are property purchasers who are eligible for:
Further information is available on the State Revenue Office website at www.sro.vic.gov.au. Know How-Choose The Right Conveyancer Convenyancing is the shifting of legal title of possession from one person to another or the granting of mortgages. This task generally involves two important landmarks and they are contract exchange and completion. In the former landmark, the equitable title is passed and in the latter case, the legal title is passed. When it comes to property purchase, it would be wise to have a lawyer with good technical knowledge in this arena as conveyancer. This professional will ensure that the purchaser / seller has a good title and he will arrange for the contracts accordingly. Now, it comes the question as to how to select this professional? Acquiring a possession without a conveyancer can be a tough and stressful task to do. Even after choosing a professional, some people may develop a doubt as to whether they have selected the right professional. If you are planning to make a property investment, you should consider many questions when selecting such a professional, who will be acting on your behalf. When you are selecting a reputable conveyancing firm, in most cases you can be rest assured of the fact that they will be having a team of licensed lawyers and conveyancers so your case will be rightly handled. On the other hand, when you seek the help of an individual, you will have to ensure whether he is registered or not. Also consider the experience of the firm whens selecting the right firm. A good conveyancing firm should have the experience of acting as Conveyancing professionals on behalf of many property purchasers. R.E.T Conveyancing will have the reputation that was built over 30 year specializing in conveyancing. We hope you will consider us as your next representative, weather you are selling, buying or transferring real estate. Melbourne – World best place to invest? When it comes to investing in real estate, impulsive decisions may prove to be detrimental, but that's not the case with a property in Melbourne. Unlike the rest of the cosmopolitan properties across the globe, the supply and demand algorithm in Melbourne works contrariwise, meaning the number of properties available are far too less than the number of property enthusiasts. Melbourne is an eccentric mix of culture, fashion, entertainment, sports, history, and heritage and is the only city in the world to house five international sporting facilities in the heart of its Central Business District. Now that you've found the perfect house in this stylish, sophisticated city, there are a few bases to cover to ensure you are subject to an enviable bargain. Conveyancing in Melbourne makes the transfer of property from the owner a seamless process. You can always choose to attempt the process yourself but going this route may take you several months or more to claim ownership. A conveyancer in Melbourne may or may not be an attorney, but is an accredited practitioner certified by the Victoria Conveyancing Association who is able to advise you of your best interests. When you commission a conveyancer in Melbourne, you can be rest assured that all the loose ends are taken care of. Buyers and sellers appoint their own conveyancer in Melbourne who usually charges a fixed fee or a small percentage depending on the value of the property. The services offered by the firms conveyancing in Victoria are not limited to forming the contract, disbursements, inspections, property assessments and finally transferring of the property. It is the responsibility of a property buyer to ensure that the seller has the complete right and title towards the property that he is intending to sell. It should also be ensured that the house has any factor that would prevent the purchaser from reselling or mortgaging in the future for meeting any other expenses. |
AuthorInna Segal of www.retconveyancing.com.au Archives
October 2019
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