Preparing To Buy A Home - So you’re in the market for a new home or investment property? Here are a few tips and strategies from the Property Profile Group experts on how to prepare for your purchase and ensure that the buying process is stress free.
Finance
When buying any property ensure all of the essential preparation has been completed. This includes securing the right finance. Talk to your bank or employ the services of a mortgage broker. You’ll need to know how much you can safely borrow as well as figure out the type of loan that best suits your needs. Take into account stamp duty, cost of conveyancing, possible moving expenses and the repayments, while also allowing for increases in variable home loan interest rates.
Finally, research the different levels of State Government financial assistance that may be available to you. Assistance is available for first home buyers. There are also differences in stamp duty rates for newly built homes and established homes.
Location
Looking for your new home or investment property can be exciting. But rather than rush in, it pays to be prepared and do as much research as possible. What’s currently on the market? Your local PPG professional is willing to help so don’t be afraid to utilise their knowledge and register with their email alert service. It’s also advantageous to spend some time researching the area in which you intend to buy. What are the local amenities? How convenient is public transport? And what have recent properties in that area sold for? Attending several auctions is also a great way to see what’s happening in the market place and set a realistic purchase price.
Research
Once you find the property you want to buy, carrying out a building inspection is a must. A building inspection involves a thorough examination of all accessible areas of the house or apartment to determine its overall condition and pick up any defects. Each building inspection should be undertaken by an experienced professional to guarantee you have a detailed knowledge of the structural condition of the property. A comprehensive building report should also be provided after each inspection. The inspection and report will set you back a few hundred dollars but it’s money well spent and could save you thousands in the long run.
Finally, don’t forget to read the contract of sale, including the Section 32 which includes information about rates, local government building restrictions and easements (if any). You may even want to ask your conveyance or lawyer to check the fine print.
Auction Guide
An auction is usually held at the property itself. Ensure you arrive early on the day so you can take one last look around the property. You’ll also feel more relaxed and level headed if you have time to spare. Attending other auctions in the lead up to yours is also a great way to become accustomed to their pace and procedure.
At the beginning of proceedings the auctioneer will describe the property and describe the contract. They will then begin taking bids. This is when the excitement really builds. Some buyers take along a friend of family member who bids for them if the task is a little daunting. As the action unfolds don’t be afraid to bid strongly and confidently, letting others know you mean business. If you are successful at the auction you’ll be asked to sign the contracts and pay the deposit, so don’t forget your cheque book! Once that’s finalised, the only thing left to do is celebrate.
To summarise:
- Be informed
- Shop around
- Don’t hurry
- Read everything before you sign
For more information, please see the REIV Guide to Buying and Selling