Savings & Finance
Make enquiries with your existing bank as to what deposit is required and the products they offer. Also make contact with a broker known to family or friends. Brokers may have a larger product range than banks as they usually deal with up to 30 banks having various products and options.
Choosing a first home
You will need to determine what type of property will suit your lifestyle. For example, if you’re starting out in the property market your finance options may be limited and a low maintenance unit or apartment could be your best option. You may then have a 5-7 year plan to move on into a larger family home.
The State Government has legislated that First Home Buyers will not be required to pay Stamp Duty up to a $600,000 purchase.
What to look for
Location is always the most important consideration to make when looking to buy property. Unfortunately, top location is directly associated with higher pricing.
You might need to study a target area that has all the transport, shopping and educational facilities but has not yet been ‘discovered’ or is not yet seen as ‘trendy’. Neighbourhoods and even whole suburbs can evolve over time with the growth patterns of cities. Talking to local agents and checking Government Planning Schemes online can help with this process.
Other things to think about are the age and condition of the building, drainage of the land and natural light. Mclennan recommends that you employ a qualified building and pest expert to conduct a pre-purchase inspection.
The negotiation process
There is plenty of sales information available to download on sites such as realestate.com.au. Do your research and drive by similar properties sold in the area. Attend Auctions and open for inspections. Very quickly you will have all the data you need to make an informed opinion and, hopefully, an offer on the property.
Solicitor / Conveyancer
A family member or friend may already have a relationship with a Solicitor or Conveyancer who they can recommend. When choosing a Conveyancer, make sure they have the required public liability insurance. They will guide you through the legal aspects of the purchase process and will liaise with your lending institution to arrange Settlement.
Pre-settlement final inspection
You’re getting excited and settlement is not far away. Your legal representative should advise you to arrange a final inspection of the property prior to settlement day. Make sure you allow at least three days prior to settlement to conduct your final inspection. This allows time to rectify any concerns or issues there may be with heating or appliances that don’t seem to work.
Occasionally, particularly if the house has been vacant for a while, gas air locks can develop which can be quickly fixed by a licensed plumber and the appliance is actually in good order. If the property has been vacant, make sure the agent has arranged with the owner to have the electricity connected so that all checks can be made.
The inspection will be conducted with the agent present and in some cases, the vendor / owner.
Your settlement will be arranged for a specific time of the day. Normally, you will hear from your legal representative within the following hour advising that it has settled.
Arrangements to pick up keys, remotes etc. should be made with your agent in the days prior. A week or so prior to settlement, you will have made sure your service connections are in place.
Congratulations, you are on your way!
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