Step-by-Step Conveyancing Process
July 10, 2023
Helpful tips when Selling Property
July 23, 2023
What to consider when purchasing property
Purchase Price
What purchase price can you realistically afford?
Will you be paying cash or will you require finance? Prepare yourself by doing a credit check and applying for a pre-qualified home loan to prepare a budget based on those figures. As a general rule, you should look at spending no more than a third of your monthly income (after tax and deductions) towards your bond repayments.
You will also need to save for a deposit in most cases and will need to take into consideration the other costs involved when buying a home, you should have saved at least 10% of the purchase price before starting your search, this would usually be adequate to cover the deposit and costs.
Buying Costs
Apart from the purchase price, there are other substantial costs involved that you will be liable for. You will in most cases be liable for TRANSFER DUTY as well as other conveyancing costs. The conveyancing costs will include TRANSFER FEES and BOND REGISTRATION FEES, please refer to OUR COSTS PAGE for more information on these fees.
We can provide you with more detail and an accurate estimation of these costs upfront to help you plan accordingly, please feel free to CONTACT US in this regard.
Before committing to the purchase you need to familiarise yourself with the other costs involved in owning a home such as municipal rates, water, electricity, levies where applicable and homeowners insurance.
All of these costs must be taken into account when determining your budget and must be carefully considered.
Bond Originators
The value of a good bond originator cannot be over emphasised. If you are going to be registering a bond over your property it is usually advisable to use this service.
Bond originators will ‘shop around’ and get you the best deal on your home loan considering the interest rate and other terms and conditions. It is not guaranteed that ‘your bank’ will always give you the best rates and the amount of money you save by getting a good rate can truly be substantial over the period of your home loan.
That being said however it is your personal choice whether you use a bond originator or go directly to the bank and we would be happy to assist with further advice if need be.
Location Location Location
Now that you have a fair idea of what this will cost you, you can confidently decide whether this is the right time for you to buy.
If this is the right time, nothing can be more important at this stage than LOCATION…LOCATION…LOCATION, as they say it is better to own the smallest house in the best area rather than the biggest house in the worst area!
The following could be considered when deciding on the right area and it is a good idea to make a list of priorities ranging from ‘not negotiable’ to ‘not important', for example:
- safety
- values of property in the area
- places of worship/schools
- convenience
- quiet residential neighbourhood/busy CBD apartment
- proximity to family, friends and amenities etc…
It is very important to consider the crime rate in the area and the general feel of the area…your first overall impression of the area is usually a good indicator.
Take time to carefully choose the right location before proceeding with your search. This is usually a long-term investment and it is not wise to rush into the decision without carefully considering your options.
Estate Agent
Once you have decided on the right location you are almost ready to start searching for your dream home.
You need to consider whether you would like to appoint an exclusive estate agent to find you your dream home. A good estate agent can really add value to the home buying process and help to make it a smooth and painless experience.
Your estate agent, if you have elected one, will have listings of property for sale in your chosen area according to their mandates and will arrange viewings of the chosen properties, most estate agents also have access to other listings by other agencies and can make the necessary arrangements to get you into most properties.
If you choose to use an estate agent be careful to try to find the ‘right’ estate agent, the best way to do this is usually through a personal referral or a reputable agency.
Estate Agents are mandated by the seller, as such they are paid by the seller and this cost will not be for your account, unless otherwise agreed.
Search
You can now begin the search for your dream home.
If you have chosen to use the services of an estate agent then your agent will provide you with details of properties that meet your requirements and arrange viewings at your leisure.
There are also numerous websites available with property listings for you to search through on your own, most of the websites have property alert features and are very user-friendly - this is probably the most convenient way to search for your property.
Be thorough with your search, don’t rush into something that you will regret later.
Inspect
Thoroughly inspect the home that you have chosen before you decide to put in an offer to purchase.
Don’t look at the aesthetic items that can be easily changed if need be. Look for any real defects and whether your budget allows for any required renovations.
Possible defects to consider could include:
- Boundary walls
- Roof tiles / leaks
- Doors / windows to replace
- Large trees / roots causing foundational damage
It is a good idea to take photos that you can review again back at home, it is so easy to forget what you have just seen and you may pick up things in the pictures that you didn’t notice at first glance. Take notes as you go through the house that you can refer to when viewing the pictures back at home.
Don’t be embarrassed to go view the house again…and again…and again. Bring along ‘Bob the Builder’ or someone that you trust to provide input, and ask as many questions as you have.
If possible, introduce yourself to the neighbours and ask them about the area, future plans for the neighbourhood, developments and safety.
Take your time and follow your instincts.
Offer to Purchase
Now that you have found your dream home it is time to get down to business.
Make sure that you are paying the right price for the property, your estate agent can help you with a valuation report or you can download one yourself from one of the property search websites.
Before you sign an offer to purchase or any related legal documentation it is a really good idea to get your attorney to have a look at the document to make sure that it is in order. The offer to purchase will become a binding deed of sale if it is accepted by the seller.
You can now confidently negotiate and sign an offer to purchase, most sellers are negotiable on the price and this will obviously affect the investment potential of your purchase so take time in carefully negotiating the deal.
Please CONTACT US for any further advice or assistance in drafting an offer to purchase
Conveyancing Process
Once the offer to purchase has been accepted the agreement will become binding, you will apply for a mortgage bond if applicable and any other suspensive conditions must be fulfilled.
Conveyancers will be instructed to attend to the registration of the property into your name and the registration of the mortgage bond if applicable.
The conveyancers are usually appointed by the seller, if the seller has no preference you can elect a conveyancer and we would obviously be grateful to receive the instruction!
Please take a look at our 'STEP BY STEP GUIDE TO CONVEYANCING’ for more detail in this regard.
Congratulations
On registration of transfer you will become the owner of your dream home!!
Buying a home can be a very stressful or very rewarding experience depending on how it is approached and is a great way to start building wealth and financial stability if approached correctly…
Congratulations and good luck!!!
