Build Definitions for Single Contract - VIC
The initial deposit is usually between $1000 and $5000 which is part of the full price of the contract, and which you pay when you agree to buy it. It is due at the time of submitting the EOI, is not binding and is refunded if the buyer doesn’t proceed.
The EOI is an expression of your intention to buy the property, however, it is not contractually binding. It will only be accepted with a driver’s licence or passport and the holding deposit. Details on the EOI are used for the contract, so ensure that full names are provided and correct.
An executed contract or unconditional contract is a finalised agreement that has been signed and agreed to by all necessary parties. Once both the land and house deposits have been paid, the agreement is now effective and enforceable.
Unconditional approval (also known as full loan approval) means the contract has been signed, finance has been approved and all conditions on the contract have been met.
Handover/defects inspection is a detailed building report of both internal and external of a newly constructed home. This occurs once the building work has been completed and before you take possession.
Settlement is when the balance 90% of the contract price is paid and ownership/possession, of the property is formally recorded (via solicitors) to provide evidence of title to you, the owner. You now legally own the property.
Property Managers are responsible for managing the letting of properties on your behalf. They oversee the daily operations of dwellings including advertising, collecting rent, screening tenants, and organising maintenance and repairs.
Tax depreciation is a tax deduction claimed for the natural wear and tear of an income-producing building and its assets over time. It is generally the second biggest tax deduction for property investors, after interest.