There are a number of things to consider when buying your first home. Here are some tips to help you on your journey.
The Property Buyers Guide is full of great information to help you buy the property to match your needs. It's a checklist where you can keep a record of all the properties you've seen. You can jot down everything from the address of the property and real estate agent's details, to the number of bedrooms plus services and facilities in the local area.
Buyer's Agents work for real estate agents and give professional advice on what property to buy or lease. They weigh up the investment risk and negotiate the best price
A fee applies for this expert service. In Sydney and Melbourne it's generally around $6000 or 2% of the purchase price.
Get your building and pest inspections done. It will cost a little, but if you find problems it will save you a lot of money, and headaches, in the long run.
When you've found a property you're really interested in, here are just some of the things to look out for:
Your solicitor or conveyancer should read the Contract of Sale. Are you happy with what's included in the sale? Are all the fittings included? The outdoor BBQ? Tools in the shed? Any furniture? Ask as many questions as you need to feel comfortable. And make sure it's all written in the agreement.
You can only negotiate for private treaty sales. Naturally sellers want the highest price for their property and buyers want to pay the least amount. The seller expects you to make a lower offer, but not so low that it's out of the question. Generally, people are prepared to meet somewhere in the middle.
If you've never been to an auction before, the more prepared you are, the easier it is. To help prepare for the big day, read on.
Go to as many auctions as you can. They can be pretty nerve wracking first time round. Once you get a feel for them, how they run and what happens, you'll feel more confident when you're ready to make your bid.
Get your building and pest inspections done before the auction. Once they accept your bid, it's all yours, including any potential problems.
You'll need a written loan approval before the day of the auction. Talk to us about getting a loan approval for the day. You'll also need the deposit, which is usually 10% of the purchase price. Check out our 2 minute pre-approval.
Once the auction starts you can make a bid at any time. You can do this verbally or non-verbally by raising your hand or nodding your head.
Bidding usually starts off in $10,000 or sometimes $20,000 increments. If you feel like slowing the increments down, you can offer an increase of $5,000 or less.
If bidding stalls, the agent may accept $1,000 and even $500 increments.
By law, you must register to bid at an auction. Take along your driver's licence as formal identification.
If the bidding doesn't reach the owner's reserve price the property is not sold. It is then considered "passed in". Usually, the highest bidder has the first opportunity to negotiate with the seller and the agent.
Your bid is accepted. You sign the contract and pay a deposit while you're at the auction. The deposit will be held in trust until settlement. For more information on the auction process and relevant regulations, contact the Department of Fair Trading in your state. By the way, congratulations!
At an auction, you're bidding on a property with other prospective buyers - the highest bidder being successful.
When buying a property through a private treaty you make an offer to the real estate agent who then talks with the property owners.
Once you and the seller negotiate and agree on a price, a contract of sale is signed by both parties. This is called exchanging contracts and it's when you put down a deposit.
After the contracts have been exchanged, there's normally a cooling-off period, i.e. you can change your mind about buying the property.
You need to let the seller know in writing and the deposit will be returned. However, the seller may be entitled to keep 0.25% of the purchaser's deposit. This percentage varies state to state.
With an auction there is no cooling off period.
Once you sign the contract you're committed. If you don't go through with the purchase, you lose your deposit. You may also be liable for:
Buying and renting may all be appropriate throughout your life. It depends on your circumstances and what's important at that time. Here's a look at the pros and cons of each, so you can weigh them up for yourself.
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