Buying a Property

Ready to Buy?

Knowing your property requirements beforehand saves time and streamlines your search. Key considerations include:

Financial Considerations

Affordability: Calculate your deposit and repayment capacity. Typically, you’ll need at least 10% of the selling price as a deposit. Lenders usually cap monthly repayments at 25% of your gross income.

Location Priorities

Preferences: Identify areas that match your lifestyle and needs, shortlisting two or three suburbs. Consider transport, schools, shopping, and amenities. Research suburbs with new developments and improved access to facilities.

Property Type

Requirements: Decide on the type of property (flat, apartment, townhouse, house) and essential features like the number of bedrooms, bathrooms, living areas, kitchen size, garden maintenance, garage size, and the need for a study.

Searching for Properties

Methods: Use real estate agent offices, magazines, TV programs, and websites. Builders in your chosen areas can provide insights into new or valuable properties. Attend seminars, auctions, and ‘Open Inspections’. Consider a buyer’s advocate or agent for professional guidance.

Evaluating Properties

Inspect: Visit properties during advertised times or schedule appointments. Multiple inspections might be necessary.

Criteria Assessment: Evaluate properties against your needs, considering location, size, and proximity to amenities. Visit at different times to understand the environment.

Expert Inspection: Have a builder or architect inspect for defects, especially if planning renovations. Services like Architecture and the Housing Industry Association (HIA) offer detailed reports.

Organizing Finance

Confirm Loan: Verify your borrowing capacity with your financial institution. Ensure repayments are manageable even if interest rates change.

Additional Costs

Consider extra costs like legal fees, stamp duty, loan application fees, insurance, and adjustments for council rates and water fees.

Making an Offer

Process: The agent submits offers to the vendor. The property remains on the market while offers are considered. Include a lapse date and conditions (e.g., finance approval, inspections) in your offer. A contract becomes binding once both parties sign.

Final Steps

Exchange of Contracts: This legally binds the sale. Both parties sign and exchange contracts, and a deposit is paid.

Settlement: Complete payment and take possession of the property.

Moving In: Connect utilities, check locks and alarms, ensure child safety, and register to vote in your new electorate.

By following these steps, you’ll be well-prepared to find and secure a property that meets your needs and preferences.

Information in this article has been sourced from the Real Estate Institute of Australia