Before you buy an investment property you need to ask yourself two key questions, how will you buy the property and what exactly are you buying?
Does it matter what name I put on the contract?
Before signing the contract you should work out whether you will buy the property in your own name, in co-ownership, under a company name or using a trust.
Investment properties carry more risk than an owner occupied residence. If you develop the property, or rent it out, and an accident happens that’s not covered by insurance then you could be liable for damages. Similarly, if you run a business or are involved in a risky profession then you are at risk of being sued.
If you are sued, become bankrupt and own all your properties in your own name, then all those properties could be at risk.
Are you sure you know what you are buying?
Not every property is what it seems and not every seller is honest. There can be a multitude of issues that that can be hidden from unsuspecting buyers.
If you’re purchasing an investment property, it’s important to know what you are buying. To be sure you get what you pay for; taking the following steps can help:
- Engage a qualified building and pest inspector to inspect the property for defects and pest infestations;
- Obtain a survey to make sure the property boundaries are where they should be and that there are no encroachments;
- Instruct your lawyer to undertake the right property searches so there aren’t any surprises such as illegal building works, building defects, unpaid rates, taxes and levies, rights of way and easements, zoning non-compliance, contaminated land, and compulsory acquisition.
Buying an investment property can be complicated and confusing. It’s important you have the right legal team - so you can buy securely.
Lawlab is a national law firm specialising in property law and conveyancing, with more than 100 years of experience.
For more information call 1800 529 522 to speak to our friendly team, or email firstname.lastname@example.org