Buying a property requires a considerable amount of research, time, commitment and planning. Remember this could nearly be the biggest financial commitment and decision you will ever have to make and one that will almost certainly have a major impact on your lifestyle.
The first thing you should do before you start your search for the perfect dream home or investment, is determine how much you can afford and the area in which you would like to buy into.
There are a variety of home loans that are available, each offering different rates and features. The two basic home loan types are Fixed Loans and Variable Loans, both having their advantages and disadvantages. When selecting a loan you should speak with your Finance Consultant as they will be able to arrange a loan that best suit your needs.
Prepare a short list of the preferred areas that best suit your lifestyle, keeping in mind affordability and accommodation requirements. Once you have established the area in which you would like to live, research recent sales and the price of properties on the market, as they should give you a good indication of property values and an understanding of the real estate market. Also attend and inspect every property for sale in your preferred location and this will help give you a feel for the prices.
Develop a relationship with one of our professional Sales Consultants as they will be able to advise you with any further information you may need and also register you on our Sales Database so you automatically receive notification of any new listings.
Before you commit to buying your property there are a number of inspection reports that should be completed. These inspections are noted below and it should be noted that the costs of a professional property inspection is minimal compared to the cost of any possible defects and unforseen repairs.
Building Inspection - Will give you an expert's opinion on the condition of the property and detect any significant structural defects or problems.
Pest Inspection - Will identify whether there is any termite activity or other pest that may exist in the property.
Strata and Company Title Searches - This report is very important when buying an apartment, townhouse, unit or any property managed by a company or body corporate. This search will show the history of the property, identify any problems the property has had and proposed repairs to other units and the common areas.
Deciding on how much to offer can be difficult. You may wish to start with your best offer up front or a lower offer and be prepared to negotiate higher. The choice is totally yours. If you are in any way unsure of the process, your Select Property Group Sales Consultant is always there to guide you.
A Contract of Sale sets out the Terms and Conditions of the sale. A buyer can examine the contract at any time, even before an offer is made. Once your offer has been accepted, contracts must be signed by the purchaser and the vendor. Most people employ a Conveyancer/Solicitor to do the legal work involved in purchasing a property which includes preparing documents, title searches, giving legal advice on contracts and explaining the implications.
Once negotiations have been finalised, you will be required to sign the Contract of Sale and pay a deposit, which is normally 10% of the purchase price. The deposit is paid to the seller's Real Estate Agent or Solicitor who will hold the money in a trust account until settlement.
Prior to settlement, it is advisable that you do a final inspection. This inspection usually takes place as close to the settlement day as possible and is to ensure the property is in the same condition as when you last inspected it and that all inclusions are as per the contract you signed.
At settlement, once the balance of the purchase price is paid, including any adjustments and the titles and transfer documents have all been exchanged, you become the legal owner of the property.
Stamp duty is a Government Tax that must be paid on settlement. It is calculated as a percentage of the sale price or the market value. Your Agent can explain the tax payable.
It is important to understand the procedures of buying at an auction. You should have researched the property being auctioned and have finance approved prior to bidding, because, if you are the successful bidder and the property is sold to you under the hammer, you are obliged to purchase the property.
Before the auction commences, the seller will nominate a "reserve price" to their Agent, which is the lowest price that the seller will accept for the home. This "reserve price" will not be disclosed to the buyers.
If the property fails to reach the "reserve price" the property can be "passed in" or withdrawn from auction. The agent may then negotiate with the highest bidder. This may result in a sale.
If the property is sold at auction the successful bidder is required to sign the Contract of Sale and pay a deposit, usually 10% of the purchase price right there and then.
Please note: It is illegal to make "dummy bids" at an auction. If you make "dummy bids" for the seller, you may be prosecuted and incur a fine.