Australia-wide property prices have been on the rise this year, from the highly publicised runaway prices in Sydney, to the steady growth in Melbourne, the recent boom and apartment sales in Brisbane and the slew of new developments announced for the Gold Coast. Key to this tremendous growth has been the high level of sales to property investors.

If you’re looking to get into the property market and buy an investment property there are a lot of benefits to be had, such as wealth creation, capital growth and tax benefits, but since buying property is such a major decision that can take a huge financial toll it’s worth doing some thorough research on the property before signing that contract of sale.

Everyone likes to get advice before they make a decision. Whether it’s asking a friend what they thought of a restaurant before you make a booking, asking your husband if your bum looks big in that dress before a night out, or what type of car you should buy.

At Dylan & Inns our conveyancing solicitors see a lot of clients who are purchasing an investment property on the Gold Coast, or in Brisbane. Some of these clients are savvy investors who have purchased numerous properties before and are familiar with the process, while others are first time property investors dipping their toe into the market.

In Queensland the standard contracts of sale, being either the REIQ Contract, or the ADLForms Contract, include a standard building and pest condition. What this means is that a contract for the purchase of property will be subject to the buyer undertaking a building and pest inspection of the property and being satisfied with the report they receive following the inspection.

It seems these days that every week there is a new story about a property that sold at auction for close to double its reserved price, which has put the spotlight on the practice of ‘underquoting’ in the real estate industry.

Owning an investment property can be a great strategy for earning some extra income, but there are also costs involved, with one of the major costs being that of insurance. Things are slightly different where your investment property is an apartment or townhouse and there is a body corporate in place. As part of your body corporate levies you are paying for the body corporate to have insurance over the property.

Unfortunately the price on the contract of sale for the property you are buying is not the total amount you will be required to pay at settlement. What many people fail to take into account and budget for is the price of the transfer duty that is payable on the purchase.