Weekly wrap - Saturday 13th November
The weather is changing. The sun is out and things are looking up, five weeks to Christmas. And a well-deserved break for everyone.
A couple things are trending in lending this week
Christmas is coming!
Remember the run home to Christmas, remember the time frames attached to that - selling, buying, anything associated with property transactions. Do everything you can to get on top of that. We were working with some clients this week and their timeframe put us on the 26th of December. We actually try and put a date with it this time of year, i.e. shifting from a day range to a specific date.
Fixed rates are going up
As we mentioned three weeks ago, we see fixed rates continuing to rise, some even as far as 70 basis points. These are the sort of things we would traditionally refinance a client for half a percent. It is big money. So just be mindful that, if you're considering that, it's context to where we are today that those fixed rates are moving independently. And if it's something that you were considering, definitely jump on and check that out sooner rather than later. And remember we spoke about rate lock as well.
5 top tips for auctions
Auctions very much are a hot topic at the moment. So many clients are saying their property is going to auction, we're seeing clearance rates are really high with auction properties here in Queensland and on the Gold Coast. So it is a big topic of discussion. Please understand it is different to buying with a normal finance clause. Here in Queensland, we traditionally have a 14 or 21 day finance clause. In that time you do due diligence.
Valuations are obviously for confirming that the finance is acceptable and the property's acceptable to the bank before you go unconditional. An auction flips that round the other way, so all of your due diligence has to be done prior to auction. So we have five top tips for you for things that you need to get done before auction.
These things are going to take some time - they're not going to be something that's going to get done in the week prior to the auction.
#1 Your property inspection is really important.
#2 Your building and pest inspection: these are taking a bit longer at the moment, so you want to get that organised prior. Now again, normally with a finance clause, you would know you've secured the property before you go and pay for a building and pest inspection again; in this case, it's flip ground. The other way, some vendors will have one on hand that they can produce and give to you. Some don't however, so that may be something you need to do as well as all your other due diligence inquiries.
#3 Work out how much you think the property's worth. We can help a bit around that and get some comparable sales and reports for you of properties that sold in the area to give you a little bit of a guide.
#4 Finance. Yes. Very, very important. Speak to us weeks prior to this so you’re super organised on the finance side of thing, searches on the property, and get a copy of the proposed contract.
#5 You need to get the contract in front of your solicitor or your legal representative so they can check out the terms and run you through all the legalities that go with it.
So, lots to do before an auction! Hopefully these top tips can help you, and maybe get you thinking a little bit differently, so you can be more organised.
There are also silent auctions - all these funny little ways of selling properties seem to be coming out at the moment because of the multiple offers and multiple parties interested. The sooner you do a lot of this stuff, the better you'll be ready.
And remember, we're here to help, so please get in touch, let's have a chat!