If buying at auction, ask your agent about the process. A fundamental rule for auctions is to be completely prepared. A successful bid at auction is legally binding and no "cooling off" period is applicable.
If you plan to bid at auction, it is wise to complete any building or strata inspections you desire beforehand. It's also important to have received your loan approval in writing.
Immediately following the auction, if successful, you will be required to sign the contract and provide a cheque for the full deposit. It is crucial that any changes or conditions you would wish to make to the contract have been negotiated through the real estate agent, and agreed to by the owner in writing, prior to auction. The owner is under no obligation to agree to changes to terms stipulated in the contract post-auction and the auctioneer is legally entitled to sign the contract on the buyer's behalf in the event of a dispute. Whether the auction is being held in a real estate agent's auction rooms or on-site, the process is identical.
The auctioneer starts proceedings with a short explanation of the contract and terms of the auction. Buyers are entitled to ask questions at this stage. The auctioneer will then call for an opening bid. If a genuine bid is not forthcoming, the vendor is entitled to make a "vendor bid". It is legitimate for the vendor to bid for their own property. Likewise the auctioneer can bid on behalf of the vendor as can an agent on behalf of a buyer. The auctioneer is likely to announce the vendor bid if no other bid has been received.
Those of us who have entered the investment property market later in life may look back on our misspent youth and wonder why we didn't start earlier. Days of partying and flittering away cash on the latest fashion may have seemed wise at the time but, with hindsight, what do investors say they would do differently if they had their time over again.
Make it a rule to save and start saving early. Creating the habit of regular saving not only creates wealth, it also creates a habit to last a lifetime. You don't necessarily have to forego a terrific lifestyle to save just a little each month.
Property investment is a long term strategy for future wealth. Investing early gives you a greater chance of reaping the rewards of a growing asset.
Keep your credit record as clean as possible. Sometimes when we are young, it is hard to see the consequences of our actions. A bad debt may impact on future credit decisions.
Time equals experience. The more time you are in the property market, the more you learn from it to positively influence property decisions in the future.
Leaving investing till later in life, you may be surprised at how your mortgage and family responsibilities can limit your ability to invest.
As with most things in life, the more you know on a subject, the more likely you are to succeed. Spend time researching and following advice from seasoned investors and make decisions now that will grow your future wealth.
Fair Trading NSW
Real Esate Instutite of Australia(REIA)
NSW Office of State Revenue
Information for first home buyers
Australian Taxation Office
Land and Property Information NSW
Home Price Guide
Online street directory for Australia
Australian Securities & Investment Commission, Company Names and Searches
Foreign Investment Review Board
State Transit Authority NSW