Buying

PREPARING TO BUY

Prospective purchasers need to do some homework: decide what you want in terms of size, location and price range. Register your name and requirements with estate agents and ask them to let you know when a suitable property comes up. Regularly check the local and daily newspapers. There are also a number of Internet sites devoted to listing properties for sale.

Inspecting a property

Inspections should be made at the advertised times or by appointment with the real estate agent.

You may consider having a property inspected by a builder or architect to assess whether there are any defects that might affect your decision to buy. This is particularly relevant if large-scale renovation or extensions are planned.

Both Archicentre and the Housing Industry Association (HIA), among others, provide an inspection service. For a fee, they inspect and report on the state of the property, including the structural condition, damp and termites.

You need to look at the location and style of the property in relation to your requirements: the size of the property, proximity to schools, access to public transport and so on should all be considered. Once you have found a property that suits you, it is wise to check it out during the week as well as on the weekend, as a peaceful environment one day might be quite different at other times.

Organising Finance

When organising finance, you need to know what you can afford. It is vital that you organise your finances before making an offer or bidding at auction. Make arrangements to cover the deposit should your offer or bid be successful, and arrange to have the appropriate mortgage funds available for settlement.

Deposit requirements will vary, but as a general rule of thumb, at least ten per cent of the selling price will be required.

Confirm with your financial institution or bank the amount they are willing to lend you and calculate this with your capacity to repay, without negatively impacting on your lifestyle and other financial commitments.

Don’t forget that (variable) home loan interest rates can move up and down, so you need to have a bit of leeway to cope if this happens.

You will also need to take into account a number of other costs associated with buying a property for which the buyer is liable. These may include the following:

• legal/conveyancing fees;
• stamp duty on the transfer of property;
• stamp duty on the mortgage;
• loan application fees;
• insurance; and
• adjustments such as council rates and water fees.

Click here for a summary of the major costs associated with buying a residential property in each State and Territory of Australia.