– Ensure that you can afford it and have funds to complete the purchase
– Take into consideration the cost of Stamp duty; pre purchase inspection reports; legal costs; bank fees and other charges associated with your loan; property rates, levies and charges; Title Insurance, household insurance; removalist charges; and future repairs to the property.
Have your loan pre-approved
It will reduce a great amount of stress if you have your loan “pre-approved” prior to entering the property market, having provided to your nominated lender all required financials to verify your income. Generally, the only matter your lender will then need to arrange is a property valuation when you locate the property you would like to purchase.
When you find the property, you would like to purchase and the vendor (seller) has accepted your offer, you should immediately notify your conveyancer and provide them with a copy of the contract. The contract will be reviewed, and they will advise you on the Contract.
Contracts may then be “exchanged” once you are satisfied with all the terms and conditions of the sale. Exchange occurs when the seller has signed the original Contract for Sale and the buyer has signed an identical copy. Contracts will then be compared to ensure they are identical and physically or electronically (exchanged) and the front page of each Contract will be dated. The Completion date will run from the Contract date.
Contracts may be exchanged with or without a cooling off period.
During the cooling off period we highly recommend that you have the property inspected by a qualified building and pest inspector or where you are buying into a strata/community scheme a Strata Inspection Report is extremely beneficial.
A building inspection report can also be of assistance when carrying out a final inspection of the property prior to completion. If you feel the property has been damaged since you exchanged Contracts, you can refer back to your building inspection report to verify the condition of the property.
A buyer of residential property can cancel a contract within (five) 5 business days of exchange. This is called a cooling-off period.
It is important to bear in mind that should you decide to withdraw from the contract during the cooling off period, for whatever reason, you will forfeit to the vendor 0.25% of the purchase price. Most sellers of a residential property want the cooling-off period waived so that the contract is bonding on you immediately. This is called a section 66W Certificate.
If you have decided not to proceed with the purchase, it is crucial that you notify your conveyancer well before the cooling off expiry so that the proper legal notice can be served on the vendors conveyancer otherwise you will be bound to complete the contract.
Buying at Auction
Should you intend to purchase a property at auction, be aware that if you are the successful bidder you will be required on the day of auction to sign an unconditional contract (no cooling off period) and pay the required deposit, usually 10% of the price.
As you will be immediately bound to the contract, it is important that prior to the auction you carry out pre purchase inspections, have your loan formally approved and have your conveyancer explain the terms of the Contract to you.
If you purchase at Auction or the exchange of Contracts was made by a Real Estate Agent and we have not had the opportunity of providing you with advice on the Contract, we cannot be held liable for any consequences. Please notify us immediately if Contracts are exchanged by an agent.
Feel free to contact us with any enquiries you may have about buying your First home or investment property.
We here to assist you and talk you through the process of a purchase transaction.
“ Learn from yesterday, live for today, hope for tomorrow ”
– Albert Einstein
Torrens and Strata title
Torrens title simply means the purchaser owns the land and building. This can also be known as ‘freehold
Strata title simply means that there are multiple owners of properties on one piece of land where all owners are responsible for the areas that are shared known as ‘common areas’. Examples of Strata Title Properties include; units, apartments, Villas and townhouses. There are also Commercial properties which will fall under the same category.
Buying Real Estate ‘off the plan’ means committing to buying a property that hasn’t yet been built
For both potential homeowners and property investors, buying off the plan can be more affordable and flexible than buying an existing property but also comes with other considerations.
For further information and advice, please contact us and for further details and useful information you may access the link here.
A Commercial lease refers to the lease of a commercial property. This includes office space, industrial units,
workshops and warehouses, retail shops (whether they are within a shopping centre or not), storage sheds, working yards and other non-residential property
A Retail lease of a business premises where the permitted use is for selling goods. These shop premises are usually located in shopping centres. A retail lease commences when a person enters into possession of the retail shop or begins to pay rent as a lessee under the lease. If you have not yet taken possession of the premises, the lease will commence as soon as both parties execute the lease.