I attended a couple of house actions this morning to see how hot or cool the property market is now. The first house attracted no bidder, opening at $780k. This house is very old, so it is probably targeted at someone who has in mind to build a new house on the 771 sq m of land. At the peak, this would have easily sold above $800k. The second house (in a different suburb) is only 5 years old, single storeyed, and in a very modern neighborhood. This house attracted 3 bidders, and was finally passed in at $640k. It was not sold under the hammer, as the owner had in mind a higher reserved price.
What do I make of this? Well, the market has certainly cooled a lot, with the noticeable absence of mainland Chinese bidders. So it is true that the governments previous policy of allowing foreigners to buy into the market did create an unrealistically strong demand and a huge inflation in house prices.
What hasn't change is the way house auctions are conducted. It is all to the advantage of the seller, and indirectly, the estate agents (who benefit from playing up the market). First of all, I have noticed that while the auctioneer tries to induce people to bid up the price, the buyer is not told at which price the owner is willing to sell. The impression given is that if you are the last bidder, common sense tells you that you have won the bid. Isn't that how auctions are supposed to go? But no, the auctioneer will hang on to the last bid, and then go and talk to the owner. Then he will come back to say if the house is "on the market". If it is, the bidding continues from that level.
In the case of the second auction I attended today, the three bidders were genuinely bidding against one another in good faith and at reasonable price level. Yet in the end, the final bidder did not get the house, but only got the "first right" to talk to the owner to further negotiate. I think the auction rules ought to be re-written.
Showing posts with label migration. Show all posts
Showing posts with label migration. Show all posts
Friday, August 13, 2010
Monday, June 21, 2010
Tips for new migrants: driving
Driving in a new place is not only about knowing the traffic rules. It is about knowing how to avoid a collision, knowing what to do in a collision, and finally how to avoid the fines and summonses. The following pertains to Melbourne. I'll only mention what a seasoned driver from Malaysia may not be aware of.
Traffic rules: Always give way to pedestrians. At the roundabout, always give way to the traffic on your right even if you arrive first at the roundabout. When turning right at a junction, if there is no red arrow right-turn signal, you are allowed to go forward and wait until the oncoming traffic is clear. Then turn right. It is helpful to get just one or two lessons from a driving instructor. At least, read the driver's manual which you can pick up from any newsagent.
What to do in a collision: If no bodily injury is involved, you can pull over to the side and talk with the other person. There is no need to make a police report in this case. Exchange the name of the driver, address, phone, license plate, driver's licence number, and insurance company. If the driver drives off or is uncooperative, the best you can do is to get his rego (i.e registration number or licence plate), and then make a police report. It helps to get the name and contact number of a witness of two. There is no need to discuss on the spot who is in the right, because it is up to the insurance companies to work it out between themsleves. They will arrange for a repairer for you.
Avoiding fines and summonses: Obey all speed limits; speed traps are everywhere. They won't stop you; you'll just get a letter in the mail. Usually your first speeding ticket will be waived if you write in and appeal. In a school zone, the speed limit is often 40kph at certain hours. Watch out! The other place you don't want to get caught are at traffic junctions where both speed cameras and red light cameras are installed. I have seen the camera flash go off very often when waiting at a busy junction. There's a heavy fine and demerit points.
Parking fines are also very common. In areas of limited parking, the parking inspectors are very, very hardworking. People often get a ticket for going over time by 5 min. Be familiar with loading zones, wheelchair bays, no-standing ("S" sign), and clearways ("C" sign). The last two are especially very rigorously enforced. In a no-standing area, you can get a ticket even if you still remain in the car with the engine running. In a clearway, your car will be towed away right before your eyes. There's no negotiation. In addition to a fine, you'll have to pay towing cost and storage charges.
Traffic rules: Always give way to pedestrians. At the roundabout, always give way to the traffic on your right even if you arrive first at the roundabout. When turning right at a junction, if there is no red arrow right-turn signal, you are allowed to go forward and wait until the oncoming traffic is clear. Then turn right. It is helpful to get just one or two lessons from a driving instructor. At least, read the driver's manual which you can pick up from any newsagent.
What to do in a collision: If no bodily injury is involved, you can pull over to the side and talk with the other person. There is no need to make a police report in this case. Exchange the name of the driver, address, phone, license plate, driver's licence number, and insurance company. If the driver drives off or is uncooperative, the best you can do is to get his rego (i.e registration number or licence plate), and then make a police report. It helps to get the name and contact number of a witness of two. There is no need to discuss on the spot who is in the right, because it is up to the insurance companies to work it out between themsleves. They will arrange for a repairer for you.
Avoiding fines and summonses: Obey all speed limits; speed traps are everywhere. They won't stop you; you'll just get a letter in the mail. Usually your first speeding ticket will be waived if you write in and appeal. In a school zone, the speed limit is often 40kph at certain hours. Watch out! The other place you don't want to get caught are at traffic junctions where both speed cameras and red light cameras are installed. I have seen the camera flash go off very often when waiting at a busy junction. There's a heavy fine and demerit points.
Parking fines are also very common. In areas of limited parking, the parking inspectors are very, very hardworking. People often get a ticket for going over time by 5 min. Be familiar with loading zones, wheelchair bays, no-standing ("S" sign), and clearways ("C" sign). The last two are especially very rigorously enforced. In a no-standing area, you can get a ticket even if you still remain in the car with the engine running. In a clearway, your car will be towed away right before your eyes. There's no negotiation. In addition to a fine, you'll have to pay towing cost and storage charges.
Sunday, June 20, 2010
Tips for new migrants: health care
Australia's health care situation is quite "similar" to Malaysia's in the sense that you can choose to buy health insurance coverage, or rely on public health care service. The difference is that Australia's public health care service is by far much better than Malaysia's. Unless you are in the high income bracket, you can safely rely on the public hospitals. Even insured people are ultimately referred to the public hospitals as a final recourse (unlike in Malaysia where many will turn to Pantai Hospital or SJMC if they have the means).
Sign up for a Medicare card as soon as you can. Then you can visit clinics that provide "bulk billing" and you won't need to pay a cent for consultation. If you are referred to a non-bulk billed place for further tests or consultations, you can still get partially reimbursed by Medicare. If you are hospitalized, you are also covered.
Ambulance service is not free. It is best to sign up with Ambulance Victoria as soon as you arrive. You can do that in a post office. You'll never know when you need one and it is very expensive to call for an ambulance.
Dental care is very expensive. A simple filling for a cavity can cost you ten times more than what you pay in Malaysia. It is not covered by Medicare. Plan your treatments to be done in Malaysia if you go back regularly. Or else, buy a "comprehensive extra" coverage, which costs $1k+ per year, and will provide you some peace of mind. Note: this is not hospital coverage. It is only for things like dental, optical, physiotherapy, etc.
Finally, if you intend to buy health insurance coverage anyway, do so within one year of your first arrival. Then you won't be penalized with a hefty premium loading.
Sign up for a Medicare card as soon as you can. Then you can visit clinics that provide "bulk billing" and you won't need to pay a cent for consultation. If you are referred to a non-bulk billed place for further tests or consultations, you can still get partially reimbursed by Medicare. If you are hospitalized, you are also covered.
Ambulance service is not free. It is best to sign up with Ambulance Victoria as soon as you arrive. You can do that in a post office. You'll never know when you need one and it is very expensive to call for an ambulance.
Dental care is very expensive. A simple filling for a cavity can cost you ten times more than what you pay in Malaysia. It is not covered by Medicare. Plan your treatments to be done in Malaysia if you go back regularly. Or else, buy a "comprehensive extra" coverage, which costs $1k+ per year, and will provide you some peace of mind. Note: this is not hospital coverage. It is only for things like dental, optical, physiotherapy, etc.
Finally, if you intend to buy health insurance coverage anyway, do so within one year of your first arrival. Then you won't be penalized with a hefty premium loading.
Tips for new migrants: buying a car
Buying a car here is an easy process. Once you have decided which car to buy, and if the car is ready for you, you just have to buy a bank draft in order to pick up your car. At the same time when you do that you can arrange for a car insurance on the spot. If the company does not have an in-house agent, then they will provide you with a phone to arrange for one on the spot, and you can drive off on the same day. Your Malaysian insurance record will not help you to get an NCB (no-claim bonus) here.
Who to insure with: Most people would go with one of these two: RACV or AAMI. Call both of them to compare prices. The rate you pay depends largely on the driver's age, the make and model of the car, and the area you live in. I find that AAMI offers the better rate for my car, which is close to $700 for a Toyota Camry.
If you are a car aficionado, then skip this part. If you just want a decent car to drive, the Camry is a good choice: good car, low maintenace cost, good resale value. Some of my friends are satisfied with getting a 2-3 year old Camry, for which they pay anything from $15k-$19k at a Toyota dealer. A new one starts from $25k after adding road tax (~$624) and delivery charges (~$2k?).
To save on fuel cost, some might consider getting a smaller car. In my opinion, it is better to get a secondhand Camry and convert it to run on LPG, since the government is generously subsidizing this now. I paid only $300 for my conversion and have been happily using gas, which is 54c/lit now, as compared to ~$1.30/lit for petrol. Eligibility is only one subsidy per person every 2 years. If you plan to get 2 cars, then remember to register one in your name and one in your wife's name. If you register 2 names on one car, you are only eligible for one subsidy.
Who to insure with: Most people would go with one of these two: RACV or AAMI. Call both of them to compare prices. The rate you pay depends largely on the driver's age, the make and model of the car, and the area you live in. I find that AAMI offers the better rate for my car, which is close to $700 for a Toyota Camry.
If you are a car aficionado, then skip this part. If you just want a decent car to drive, the Camry is a good choice: good car, low maintenace cost, good resale value. Some of my friends are satisfied with getting a 2-3 year old Camry, for which they pay anything from $15k-$19k at a Toyota dealer. A new one starts from $25k after adding road tax (~$624) and delivery charges (~$2k?).
To save on fuel cost, some might consider getting a smaller car. In my opinion, it is better to get a secondhand Camry and convert it to run on LPG, since the government is generously subsidizing this now. I paid only $300 for my conversion and have been happily using gas, which is 54c/lit now, as compared to ~$1.30/lit for petrol. Eligibility is only one subsidy per person every 2 years. If you plan to get 2 cars, then remember to register one in your name and one in your wife's name. If you register 2 names on one car, you are only eligible for one subsidy.
Friday, June 18, 2010
Tips for new migrants: opening a bank account
Opening a bank account requires a 100-point check. Since identity cards are not used here, the driver's licence is the usual form of identity. Very often, such as in opening a bank account, you will require more than just the driver's licence to identify yourself. Various forms of ID can be used but they must add up to a minimum of 100 points.
A few tips here about banking:
1. If you sign up for electricity or other utility bills, it is better to put both husband and wife's name. Then when it comes to dealing with the utility bill company, either husband or wife can act. Or else, they will only deal with the nominated person and strictly nobody else. Also, either one can use the utility bill towards the 100-point check if needed.
2. Always use your name consistently. They will accept Anglican name, nickname, or whatever you fill in. It is best to be consistent. For e.g. if your name is Ah Beng, don't put it as "Ah_Beng" or "Ah-Beng" or "Ahbeng" or "John". Be consistent all the time (i.e. school, medicare, income tax, etc) and you'll minimize future inconvenience.
3. The 4 major banks are ANZ, Commonwealth Bank, Westpac, and NAB. Any bank will do but you'll probably want one that is closest to you or has ATM machine convenient to your location. If you go for HSBC, there are very few branches in Melbourne and it gives you no advantage at all in terms of transferring money between HSBC Malaysia and here, if that's what you have in mind. Suncorp, St.George, and other small regional banks also have fewer branches; an inconvenience if you are traveling through smaller towns.
4. Once you've set up an account, you will be providing that to the tax dept, Medicare, Centrelink, your employer, Superannuation fund, utility companies, etc. Plan to have one permanent account that you will use all the time for a long time, and for putting your pay in and paying bills out of it.
5. It is more practical for husband and wife to set up their own account. It makes it easier to work with the automated tax filing system (you'll find out later). You can always set each other up as nominees to operate each other's account.
6. Unlike in Malaysia, you don't need a cheque book account. I don't have one. The only time you'll need to write a cheque is when you buy a house or a car. Just buy a bank draft then. All bills can be paid via Bpay in the internet.
7. The most useful account is an everyday account and a savings account. The everyday account allows you to pay bills through Bpay and withdraw money from the ATM. The savings account is where you put the rest of your money away. You can also get a debit card to work with your everyday account, so you don't really need to have a credit card. Usually there is no charge to have a debit card and it can be used like a credit card. Initially it is hard to get approval for a credit card unless you are employed here.
A few tips here about banking:
1. If you sign up for electricity or other utility bills, it is better to put both husband and wife's name. Then when it comes to dealing with the utility bill company, either husband or wife can act. Or else, they will only deal with the nominated person and strictly nobody else. Also, either one can use the utility bill towards the 100-point check if needed.
2. Always use your name consistently. They will accept Anglican name, nickname, or whatever you fill in. It is best to be consistent. For e.g. if your name is Ah Beng, don't put it as "Ah_Beng" or "Ah-Beng" or "Ahbeng" or "John". Be consistent all the time (i.e. school, medicare, income tax, etc) and you'll minimize future inconvenience.
3. The 4 major banks are ANZ, Commonwealth Bank, Westpac, and NAB. Any bank will do but you'll probably want one that is closest to you or has ATM machine convenient to your location. If you go for HSBC, there are very few branches in Melbourne and it gives you no advantage at all in terms of transferring money between HSBC Malaysia and here, if that's what you have in mind. Suncorp, St.George, and other small regional banks also have fewer branches; an inconvenience if you are traveling through smaller towns.
4. Once you've set up an account, you will be providing that to the tax dept, Medicare, Centrelink, your employer, Superannuation fund, utility companies, etc. Plan to have one permanent account that you will use all the time for a long time, and for putting your pay in and paying bills out of it.
5. It is more practical for husband and wife to set up their own account. It makes it easier to work with the automated tax filing system (you'll find out later). You can always set each other up as nominees to operate each other's account.
6. Unlike in Malaysia, you don't need a cheque book account. I don't have one. The only time you'll need to write a cheque is when you buy a house or a car. Just buy a bank draft then. All bills can be paid via Bpay in the internet.
7. The most useful account is an everyday account and a savings account. The everyday account allows you to pay bills through Bpay and withdraw money from the ATM. The savings account is where you put the rest of your money away. You can also get a debit card to work with your everyday account, so you don't really need to have a credit card. Usually there is no charge to have a debit card and it can be used like a credit card. Initially it is hard to get approval for a credit card unless you are employed here.
Tips for new migrants: landline and internet
Check with your internet service provider first whether the area you live in is supported by them. Then only decide which land line to subscribe to. Note: once you sign up for an internet plan, you are usually locked in for 24 months. If you quit halfway, you will still have to pay a hefty penalty equivalent to the remainder of your contract.
Landline: Basically this is monopolized by Telstra and Optus. They usually will try to sell you a bundled plan, together with mobile phone and internet service. Refrain from bundled plans. These days, some people do not even want to have a landline at home, they just go for naked ADSL (which doesn't require you to have a landline). If you are one of these people, skip this. However, if you really want to have a landline, then go for the most basic plan. Mine is a $20/month plan. My landline is only for receiving incoming calls. I make all outgoing calls on VOIP. Hence my monthly bill is a constant $20.
Internet: Again Telstra and Optus are the big boys. However, TPG, iPrimus, and iiNet are the ones I would go for. See http://bc.whirlpool.net.au/ if you want to know more. TPG has the most cost effective plan. Mine is the $49/month plan with TPG. Even the capped speed is a high 1024kbps, which is highly useable. TPG also has naked ADSL if you so choose.
VOIP: This is for making phone calls over the internet. MyNetFone is the best one around, in my opinion. They have a fully prepaid plan that costs you nothing in monthly subscription. Each call you make to Australia landline anywhere in Australia is 12.5c for unlimited duration. Calls to Malaysia are 3.5c per min. Calls to Australia mobiles are 20c per min with no flagfalls. In comparison, the first one minute of call on a prepaid mobile can cost you up to $1.50. In my opinion, everyone should use VOIP. It will save you buckets.
The only reason I still own a landline is because I am old fashioned. I really ought to just go with naked ADSL.
Landline: Basically this is monopolized by Telstra and Optus. They usually will try to sell you a bundled plan, together with mobile phone and internet service. Refrain from bundled plans. These days, some people do not even want to have a landline at home, they just go for naked ADSL (which doesn't require you to have a landline). If you are one of these people, skip this. However, if you really want to have a landline, then go for the most basic plan. Mine is a $20/month plan. My landline is only for receiving incoming calls. I make all outgoing calls on VOIP. Hence my monthly bill is a constant $20.
Internet: Again Telstra and Optus are the big boys. However, TPG, iPrimus, and iiNet are the ones I would go for. See http://bc.whirlpool.net.au/ if you want to know more. TPG has the most cost effective plan. Mine is the $49/month plan with TPG. Even the capped speed is a high 1024kbps, which is highly useable. TPG also has naked ADSL if you so choose.
VOIP: This is for making phone calls over the internet. MyNetFone is the best one around, in my opinion. They have a fully prepaid plan that costs you nothing in monthly subscription. Each call you make to Australia landline anywhere in Australia is 12.5c for unlimited duration. Calls to Malaysia are 3.5c per min. Calls to Australia mobiles are 20c per min with no flagfalls. In comparison, the first one minute of call on a prepaid mobile can cost you up to $1.50. In my opinion, everyone should use VOIP. It will save you buckets.
The only reason I still own a landline is because I am old fashioned. I really ought to just go with naked ADSL.
Thursday, June 17, 2010
Tips for new migrants: mobile phone
I think I'll start writing a series of blogs giving my own tips to new migrants in Australia. I believe this information will help new migrants to Australia settle down easily and avoid making expensive mistakes. I'll start off with hand phones (Aussies call them mobiles).
Telstra and Optus are the big boys among the service providers. That doesn't mean they have the best deals. Hutchinson "3" and Vodafone are also competitive. Mobile phones that you buy here are usually locked to one of the service providers, although you can buy unlocked phones. Also, if you sign up for a plan with one company, typically the phone has to be unlocked before you can use it with another company. However, your phone number can be transferred.
Common mistakes: (1) "Free" phone plans. Many people are taken in with phone plans because they come with a "free" phone. Believe me, the cost of the phone is well hidden in the fees. For example, a $19/month plan may seem to be reasonable if it comes with a free phone. But the so-called "capped limits" are usually reached very quickly (newcomers take time to wise up to this, believe me). If you are not careful, you might think you have signed up for a "capped limit", but you can easily get slugged with a few hundred dollars in your bill. (2) Bundled plans. Service providers often try to tie you down with several products and services (e.g. landline + mobile + internet). Be very careful! I have often found bundled packages to be more expensive.
Suggestion: Do not subscribe to any monthly plan. Buy a phone outright. There are many inexpensive ones for less than AUD$100. Sign up for a prepaid plan. I am with Optus prepaid. Vodafone prepaid is also very attractive. There are several prepaid options. I go for the low usage option, whereby the $30 is good for 6 months unless you used up the credits. It also comes with 100min of free calls to 5 nominated numbers (all Optus, of course) each time you top up. Prepaid plans are good if you only make calls within the restricted numbers, or only receive outside calls. Otherwise, go for Suggestion #2.
Suggestion #2: If you are a heavy user, it is best to sign up with TPG Mobile. For $15/month you get $300 worth of calls. You bring your own phone. There is no contract to tie you down. I have found that currently this is the best mobile plan around. They also have $9, and $13 plans for different call quota. You can buy any unlocked phone, or any Optus phones (they also work on TPG Mobile). TPG Mobile doesn't have a shop front. Go to their website for detailed info: http://www.tpg.com.au/mobile/plans.html
Telstra and Optus are the big boys among the service providers. That doesn't mean they have the best deals. Hutchinson "3" and Vodafone are also competitive. Mobile phones that you buy here are usually locked to one of the service providers, although you can buy unlocked phones. Also, if you sign up for a plan with one company, typically the phone has to be unlocked before you can use it with another company. However, your phone number can be transferred.
Common mistakes: (1) "Free" phone plans. Many people are taken in with phone plans because they come with a "free" phone. Believe me, the cost of the phone is well hidden in the fees. For example, a $19/month plan may seem to be reasonable if it comes with a free phone. But the so-called "capped limits" are usually reached very quickly (newcomers take time to wise up to this, believe me). If you are not careful, you might think you have signed up for a "capped limit", but you can easily get slugged with a few hundred dollars in your bill. (2) Bundled plans. Service providers often try to tie you down with several products and services (e.g. landline + mobile + internet). Be very careful! I have often found bundled packages to be more expensive.
Suggestion: Do not subscribe to any monthly plan. Buy a phone outright. There are many inexpensive ones for less than AUD$100. Sign up for a prepaid plan. I am with Optus prepaid. Vodafone prepaid is also very attractive. There are several prepaid options. I go for the low usage option, whereby the $30 is good for 6 months unless you used up the credits. It also comes with 100min of free calls to 5 nominated numbers (all Optus, of course) each time you top up. Prepaid plans are good if you only make calls within the restricted numbers, or only receive outside calls. Otherwise, go for Suggestion #2.
Suggestion #2: If you are a heavy user, it is best to sign up with TPG Mobile. For $15/month you get $300 worth of calls. You bring your own phone. There is no contract to tie you down. I have found that currently this is the best mobile plan around. They also have $9, and $13 plans for different call quota. You can buy any unlocked phone, or any Optus phones (they also work on TPG Mobile). TPG Mobile doesn't have a shop front. Go to their website for detailed info: http://www.tpg.com.au/mobile/plans.html
Monday, September 21, 2009
Selling a house in Australia: the paperwork
Again, this is taken from last weekend's Domain, published by The Age newspaper. There are three documents involved:
1. Sale authority.
This is a legally binding contract that outlines the sale of your house through the appointed agent. Take note: 1) there is no set industry-standard for the agent's commission; 2) the seller is liable for advertising expenses even if a sale doesn't happen; 3) it is illegal for the agent to underquote the seller's reserve price.
2. Vendor's statement (or Section 32).
Typically prepared by a conveyancer or solicitor, it must be complete and signed by the seller. Take note: prospective buyer must receive a complete and signed vendor's statement or else the contract of sale would be void.
3. Contract of sale.
Verbal offer is not binding. A contract of sale identifies the buyer, seller, particulars of the property, settlement date, deposit amount, sale value, and which chattels to go with the house. Note that: 1) buyers can request a sale to be subject to finance approval, sale of their own property, or building inspection; 2) buyers have a cooling off period of three business days (can back out subject to a small penalty), unless the property is bought within three business days of a scheduled auction or if they took legal advice before signing the contract. Auctions can have no cooling off period and no attached conditions.
1. Sale authority.
This is a legally binding contract that outlines the sale of your house through the appointed agent. Take note: 1) there is no set industry-standard for the agent's commission; 2) the seller is liable for advertising expenses even if a sale doesn't happen; 3) it is illegal for the agent to underquote the seller's reserve price.
2. Vendor's statement (or Section 32).
Typically prepared by a conveyancer or solicitor, it must be complete and signed by the seller. Take note: prospective buyer must receive a complete and signed vendor's statement or else the contract of sale would be void.
3. Contract of sale.
Verbal offer is not binding. A contract of sale identifies the buyer, seller, particulars of the property, settlement date, deposit amount, sale value, and which chattels to go with the house. Note that: 1) buyers can request a sale to be subject to finance approval, sale of their own property, or building inspection; 2) buyers have a cooling off period of three business days (can back out subject to a small penalty), unless the property is bought within three business days of a scheduled auction or if they took legal advice before signing the contract. Auctions can have no cooling off period and no attached conditions.
Cost of selling a house in Australia
I am just reproducing here the information I gleaned from last weekend's Domain, published by The Age newspaper. The cost of selling a house is not something to be taken lightly. Take as an example a house that is worth $400k and eventually sells for $440k. Here's a typical breakdown:
1. Real estate agent's commission: 2.5% of $440k = $11k
2. Variable commission: 5% for amount over $400k = $2k
(note: that's a whopping 7.5% in total for the $40k "extra")
3. Advertising cost: 1.5% (for signboard, online listing, print ads, etc) = $6.6k
4. Building inspection (if required) = $1k (say)
5. Legal costs (vendor statement, auction contract, etc) = $1k (at least)
6. Exit fee from bank for outstanding mortgage = $1k (say)
Total = $22.6k, which works out to 5.1% of $440k. In addition, if you buy another house to replace this, expect to pay about 5% in stamp duty. That makes a grand total of roughly 10%, excluding moving costs and the cost of hiring temporary props to make the house look more attractive to the buyer.
The bottomline: everything above is negotiable; but not after you have signed any papers. So negotiate first!! Don't be fooled into thinking that the rates are non-negotiable.
1. Real estate agent's commission: 2.5% of $440k = $11k
2. Variable commission: 5% for amount over $400k = $2k
(note: that's a whopping 7.5% in total for the $40k "extra")
3. Advertising cost: 1.5% (for signboard, online listing, print ads, etc) = $6.6k
4. Building inspection (if required) = $1k (say)
5. Legal costs (vendor statement, auction contract, etc) = $1k (at least)
6. Exit fee from bank for outstanding mortgage = $1k (say)
Total = $22.6k, which works out to 5.1% of $440k. In addition, if you buy another house to replace this, expect to pay about 5% in stamp duty. That makes a grand total of roughly 10%, excluding moving costs and the cost of hiring temporary props to make the house look more attractive to the buyer.
The bottomline: everything above is negotiable; but not after you have signed any papers. So negotiate first!! Don't be fooled into thinking that the rates are non-negotiable.
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