During the last one decade, there has been a very powerful upswing in property investment all around the world. The reason for this upswing is undoubtedly huge profits with decent investment and the dwindling share market. With the right guidance and proper analysis, investment in real estate could turn out to be the best place for investing money for you.

This form of investment, like any other investment, has its share of advantages and disadvantages too. Therefore, there is always a risk of losing money if the investment is not right. Let’s have a look at the pros and cons of property investment so that you can make the right decision.

Pros
•    You can experience a long term capital growth especially when you buy the property in its development phase.
•    You don’t have to pay any large sum at one point. The payment is made in stages lowering the pressure on you.
•    There are additional tax benefits resulting in less tax liability.
•    You can have medium term financial gain by renting out your property for a fixed income.

Cons
•    Not every property flourishes with time. When you buy a property from an investor, you take the risk on the name of the developer and the location of the property. These factors if not properly analyzed can result in great losses.
•    Property investment is based on the future potential of the project. It involves taking into consideration the future maintenance of the project, market variations, and demand among customers. These points vary greatly with time.
•    You may not find the customer for selling the property at the right time.
•    The finishing quality of the project is not guaranteed. It may be subpar to the quality you actually thought you are buying.
•    It may take time to actually reap the benefits of your investment.

Property investment offers enormous benefits but with a certain degree of risk. If an investor clearly analyzes all the disadvantages, he or she can convert them into profits by putting some extra effort. This form of investment is an attractive idea but do weigh the pros and cons and choose the path that suits you the best.

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1. What are the legal steps in a normal conveyance?
There are a number of steps in a standard conveyance, although they vary from State to State:

Collecting relevant information - title search, certificates, inspections
Arranging finance
Contract - check conditions, sign and exchange
Requisitions on Title
Prepare the Transfer of Land
Rate adjustments
Arrange settlement with the seller and bank
Settlement
Lodging and notifying authorities

2. Do I have to go to the settlement myself?
No. You can have a representative at settlement. This can be anyone who represents you. As long as you send the cheques made out to the right amount it will be fine.

You should give the representative written authority to act on your behalf.

If the seller sends a representative, they should also have a written authority to accept the purchase money from you or your representative.

3. Do I have to pay for statutory certificates?
Yes. The charges are different for different authorities. To be sure, ring the statutory authority for the right charge and address. If you are using a lawyer or a conveyancing company, they will know these details.

4. What happens if settlement is delayed?
This depends on why it is delayed. If it’s your fault, the seller will probably ask you to pay penalty interest.

5. What are requisitions on title?
These are questions that you ask the seller about the property.

6. What sort of special conditions are likely to be in a contract?
They can cover many issues. Some of the conditions you should be wary of include: releasing the deposit before settlement, penalty payments if you don’t settle on time, etc.

7. What if I do a title search and discover a caveat on the property?
A caveat is a warning that another person or company has an interest in the property. For example, it may be to secure a personal loan. If there is a caveat, make sure that it is removed before or at settlement.

8. When should I get insurance?
You should think carefully about insuring the property after you exchange contracts. Although it is not strictly necessary until settlement, you are entitled to have insurance from the time of exchange. Check with your solicitor or conveyancer.

9. Can I buy a house with another person?
There are two types of co-ownership. Joint tenants are just that they own the property jointly. This is usually the way property is owned by married and de facto couples. Joint tenants own equal shares of the property.

Tenants in common can sell their share of the land or leave it to any person in a will. Tenants in common can own the property in equal shares or on any other basis, e.g. 70% - 30%.

10. Who does conveyancing? Mainly solicitors. In some states there are also licenced conveyancers. There are also do-it-yourself kits produced for some States.

When you are deciding which to use, some of the issues you should think about are:

What’s the cost?
What protection is there if they make a mistake? Is there indemnity insurance which covers faulty work?
Are there other issues that you may need advice about?
Does the conveyancing looks straight forward (are there caveats, covenants, has the house been owner-built)?
Do you have the time and energy to do-it-yourself?

Love life, not just the weekends. You only have one life, Live It! @ www.NicciAndLee.com

Property has been a popular route to wealth for many. Buying your own home is often the first investment many people make; purchasing another property may well be the second even before shares and other assets.

But your first investment in property neednt be your home. Indeed, buying a small apartment to rent out can be a good way to accumulate funds so you can eventually buy your own place, in an area where you want to live.

Increasing numbers of young persons are choosing this route, buying in one suburb while renting in a more desirable and expensive area or living at home for a while longer.

Still others are diversifying into non-residential property via property trusts and syndicates.

Sensible investments in property have many attractions. Property can be less volatile than shares though not always and it tends to be regarded as a safe haven when other assets are declining in value.

It has the potential to generate capital growth (an increase in the value of your asset) as well as rental income. Then theres the tax advantages associated with negative gearing.

However, as with any investment, there are no guarantees. Property prices go down, as well as up, and sometimes tenants are hard to find especially good ones who pay on time and take care of your investment.

Investors need to have a keen awareness of the interest rate environment how higher rates might affect their expected net return and the market for their property should they wish to sell. They also need to make sure the return or yield from their property stands up against the return they might have achieved had they invested in shares, for example.

Of course, you dont have to make a direct investment in property. Pooling your funds with other investors in managed funds with a property focus, listed property trusts or property syndicates provides exposure to a broader range of property including commercial, industrial and retail as well as residential often with a smaller investment required.

Property should account for perhaps 10 per cent of an investment portfolio.

Love life, not just the weekends. You only have one life, Live It! @ www.NicciAndLee.com