Don’t cut corners on what is, for most, the biggest investment you’ll make in life, says Velocity Conveyancing director Andrew Satsias. Photo: Thomas Lucraft.
When Andrew Satsias began his career in general legal practice, he recalls a time when “you did a bit of everything”.
But life, and the law, has become far more complicated these days, the Velocity Conveyancing director says.
So when it comes to what is, for most, the biggest investment they’ll make in life, the lawyer of 29 years says it’s vital you don’t cut corners.
Buying a home should be an exciting milestone but the process can be complex and full of traps for the unwary, Andrew says.
“Conveyancing involves a number of moving parts – contracts, concessions, costs, tax clearances – and it’s easy to miss critical details unless you have someone experienced guiding you through it,” he says.
From contracts and costs to concessions and (tax) clearances, getting your head around the nitty-gritty details is best handled by eagle-eyed experts to ensure the process goes smoothly – even when you’re an experienced investor, according to Andrew.
The devil’s in the detail, as they say, and laws and regulations vary across the country and change frequently, making it even more important to get sound advice tailored to your situation.
In the ACT, for instance, property contracts are more comprehensive than in many other jurisdictions. For houses and townhouses, they come with building, pest, compliance, and energy efficiency reports included from the outset.
“The idea is to provide buyers with greater disclosure up front, which speeds up the exchange of contracts,” Andrew says.
“We always recommend reviewing the building report carefully. If any issues are reflected in the agreed price, that’s generally fine but there should be no surprises post-settlement.
“We’re talking about things like unapproved structures and what the cost might be of making them compliant. It’s one thing if it’s a small shed, but a non-compliant deck might bring complications.”
Buyers of apartments and townhouses should pay special attention to the two years of body corporate meeting minutes, included with the contract, Andrew says.
It may sound yawn-worthy but those minutes can be a “rich source” of information.
“They’re often overlooked, but those minutes can contain valuable insights, upcoming repairs, disputes, potential fee increases.”
He says there are several recent changes in the industry which may be unknown to many.
One key area of change is in identity verification. New rules apply to buyers and sellers in a bid to combat fraud.
“There’s growing concern around fraudulent transactions. These enhanced checks provide more protection across the board,” Andrew says.
Sellers also need to be aware they require a tax clearance certificate. From January 2025, all sellers – not just foreign residents – need to provide a tax clearance certificate. Failing to provide one can result in up to 15 per cent of the sale price being withheld at settlement.
“This catches some people off guard. It’s why you want someone across these requirements – especially in regions like the ACT and NSW where differences in timing and process can be significant,” Andrew says.
Stamp duty is one such example. In the ACT, it’s due 14 days after the title is registered, not at settlement as is typical in NSW.
“If you’re not budgeting for that, it can cause issues,” he says.
Good legal advice can also open the door to major savings. Grants and concessions, particularly for first home buyers, can make a big difference. But eligibility isn’t always black and white.
Before diving into the property market, Andrew advises speaking with your bank or mortgage broker and having an honest look at your finances.
Budget is the first step you need to consider.
“What you believe you can afford and what the bank is willing to lend might not align,” Andrew says.
Even everyday habits can influence lending decisions.
“Things like your morning coffee or weekend breakfasts may not seem like much, but if they show up regularly in your bank statements, the bank could treat them as fixed expenses.
“You might think they are habits you’re planning to give up but they might be enough to affect your borrowing power and your chances of securing your dream home.”
For more information visit Velocity Conveyancing.
