Buying your home is probably one of the biggest financial transactions you will ever undertake. Making the decision to purchase a property is an exciting time, but it can often come with a little anxiety. We pride ourselves on offering excellent customer service and our professional, well trained sales staff will endeavor to listen clearly to your requirements and present only suitable properties to you.
Before you start to look for a property, it’s important to understand the buying process.Don’t stress. The process doesn’t have to be daunting. If you have a plan of attack, purchasing a property can actually be an enjoyable process.
While most lenders require a deposit of at least 10% of the property value. Putting a savings strategy in place early on in your financial lifecycle will make it easier to obtain finance and purchase your dream home down the track.
Establish Your Requirements
Make a list of what you absolutely require in a property (Don’t get carried away & buy something that looks ‘great’ but doesn’t meet your absolute needs)
Make a ‘Wish List’ (This may help where desired but non-essential items can be taken into consideration when making your final decision and placing an offer)
Be Aware of the Current Market
Inspect as many properties as possible within your price range (This will give you an idea of what different properties are offering enabling you to then compare value for money within your price range)
Be aware of what has recently sold in your price range. (This will help to assist you in making a realistic offer on your selected property)
Have an understanding of the basic steps involved in a real estate transaction to help guide you through the procedure smoothly.
- An initial holding deposit of $5,000 is required to put into the particular property that you intend to purchase. EOI is usually partly refundable should you have a change of mind prior to signing contracts, and should be held in a trust account.
- A contract of sale will be prepared by the vendor ‘solicitor. This is usually a few days after the holding deposit has been sent.
- The contracts, once prepared are sent to the purchaser’s solicitor. They in turn review the contract, suggest and negotiate any changes that they feel are in your best interests and forward the contract to you, with their covering notes.
- Once the contract has been signed by the purchaser and the vendor (with no outstanding conditions) and the 10% deposit has been paid it is considered to be “unconditional”. This 10% is generally held in a trust account by the developer’s solicitor. It is important to ensure that the 10% is held in trust and is not available to the vendor until the project is complete. This will be specified in the contract.
Local Australian investors often have the option of exchanging contracts using a Deposit Bond or Bank Guarantee (to the value of 10%) rather than using 10% cash. This option varies from project to project, so please check this option with us.
- Once contracts have exchanged, there are now no further property payments required, until the project settles (completes).
- Several months prior to settlement your solicitor will contact you to prepare for settlement. It is important at this time to:
Organise Finance: We have experienced mortgage brokers who are available to assist both our local and non-resident investors.
Organise a pre settlement inspection: You can do this yourself, though we suggest that in addition you use the services of an independent builder to inspect your property on your behalf.
Organise an Australian bank account: If you are borrowing funds in Australia you can organise this with the same lender. In any case you will require a local account to have the rent paid into.
Organise a local property management agency: You will require the service of a local property management agency to manage your investment, find and manage the tenant, ensure that rent is paid in to your account and that property costs such as council rates etc are paid.
For interstate and international investors, all of these things can be readily organised without you needing to personally visit.
You can take care of each of these steps personally, or we can assist where required or if you are a non-resident investor, you can take advantage of our Full Service option
- A written ‘Offer to Purchase’ is submitted to the Vendor for acceptance.
- A contract (with a 4 day ‘cooling off’ period) is then drawn up by the agent who will then obtain signatures from both the vendor and purchaser.
- You will then be required to pay agreed deposit to the agent to be placed in Trust.
- The agent exchanges the contracts and submits to the relevant conveyancers within the same day.
- You will then be contacted by your conveyancer within this 4 day period to explain and confirm contract of purchase with you and make any adjustments or order any reports required, prior to the expiry of the ‘cooling off’ period.
- Once all conditions are met, contracts will be made unconditional and a settlement date will be set.
- You will then have an opportunity to do a pre-settlement inspection with the agent.
- Upon settlement all keys will be handed over to you by the agent.
Following the above steps should assist in making you feel more confident and therefore satisfied that you have found the right house at the right price and make the contract process less daunting.