Useful Buying tips

Buying a property is such an exciting event. However it requires a considerable amount of research, planning, time and commitment to ensure a wise purchase.

Here are some simple tips to assist your preparation:

  1. How much can you afford? Speak to your bank, financier or contact us to organise a meeting with our mortgage broker. Lenders structure loans in various ways, therefore it is best to do your research to arrange a loan that best suits your needs.
  2. Where would you like to live? Narrow your search to one or two areas. Having established your purchase price you will be able to decide on what type of property (ie house, unit, townhouse etc.) you can comfortably afford to buy. Research recent sales in the area. Inspect every property in your preferred area so you have a feel for the price. Attend a few auctions also.
  3. Develop a relationship with the local real estate agents in your desired area.  Provide the agent with your email details so that they can help keep you informed of new listings and provide you with additional advice and information.
  4. When you find a property that you would like to buy, ask the agent to send you and your solicitor or conveyancer a copy of the Sale Contract for them to review.
  5. Before committing to purchase a property, a number of reports should be conducted: a) building inspection b) pest inspection c) strata and/or company title.
  6. Make an offer. Deciding on how much to offer can be difficult. Your offer should be around the current market value. Put your offer in writing and give it to the agent. The agent is obliged to submit such offers to the owner. Bidding at auction is obviously different. The Office of Fair Trading has some literature called the “Bidder’s Guide” that you can find on their website.
  7. Offer accepted. Once your offer is accepted you will need to sign a contract and present a cheque for 10% of the purchase price. There are two contracts, the owner(s) signs one and the purchaser signs the other. The solicitor/conveyancer usually organises the exchange.
  8. The cheque is made payable to the real estate office’s trust account (sometimes an interest bearing account). These funds are held in trust for the duration of the settlement. If in an interest bearing account, on settlement the interest is normally divided between the buyer and seller.
  9. Settlement. This is when the property becomes legally the possession of the buyer. Your solicitor/conveyancer may suggest that you do a pre-settlement inspection to ensure that the property is in the same condition as when you last inspected it.