This is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.
This obvious step is often underestimated by many buyers. We can help you understand what you need to save for and help you set your savings goals.
Apart from saving for your deposit, you need to plan for other costs:
✓Lender application and/or establishment fees,
✓Building and contents insurances
✓Debt protection insurance
✓Government charges (stamp duties, registration and land transfers)
✓Property inspection costs (pest, building etc)
✓Property maintenance issues that you will need to attend to as soon as you take ownership.
Make an appointment with us to discuss your home loan options
Together we will complete a Clients’ Needs Analysis, providing us with a full picture of your financial position and clarifying your property ownership goals.
There are three main considerations that must be taken into account when you are looking to borrow money for a home purchase, and they are:
✓Capital – How much deposit do you have, and is it genuine savings?
✓Capacity – How much will the lender lend you, given your income and other financial commitments? (Credit card limits are generally assessed as if they are fully drawn)
✓Cash-flow – How much are you comfortable repaying off a home loan?
Some people say that property is all about Location, Location, Location. We say that buying a great property is all about Research, Research, Research. Make sure you have followed the market for some time. Look at lots of properties and follow up to find out how much they have sold for. On Monday mornings, see if you can find the sale price on the internet, if not, call the Real Estate agency to find out the sale price. This will give you fantastic knowledge and a great base to start negotiating confidently.
Have your conveyancer review the sales contract
Always have your conveyancer review the sales contract prior to making an offer or bid. The Real Estate agent will be able to email you a copy that you can forward directly to your conveyancer.
Complete property inspections
If you are going to bid at auction, you will need to complete these prior to bidding on auction day. If you are negotiating a private sale, then you can insert satisfactory inspection results into the contract as a condition of your offer.
Make an offer or Bid at Auction
This is where all of your new found knowledge comes to the fore. We have separate Tips and Hints sheets for both of these ways of buying properties. Please ask us and we can email them to you.
Pay the deposit
The standard deposit required on a property sale contract is 10%. However, there are circumstances when you may not have the full 10% in cash readily available. If this is the case, prior to the auction or your final accepted offer, discuss with the Real Estate agent whether there are any alternatives to the full 10%. You may be able to negotiate a lower percentage, or even use a Deposit Bond as an alternative to a cash deposit.
Waiting for Settlement Day
Take a deep breath and relax, you’ve earned it!
We will continue to manage the loan application process, and your conveyancer will manage the other legal title requirements.
You may receive paperwork to complete from us, your lender and/or your conveyancer. Always complete these as quickly as possible and return straight away, to ensure that the process continues smoothly, allowing time to get over any glitches that arise.
You should be starting to get quote for movers, building and/or contents insurances, debt protection insurances, or Property Management agents. Review the “moving tips” list that we have given you and tick all of these tasks off.
A very exciting day…..but you have to do nothing except collect the keys once it is all finalised.
Your conveyancer, the lenders solicitors, the vendor’s conveyancers and any other involved parties will meet at the pre-arranged time and place to swap cheques, titles, mortgage documents, first home owner grants.
Once this has been completed, the vendors’ solicitors will call the Real Estate Agent to give the “all clear”.
You can now collect the keys from the agent.
Congratulations on successfully purchasing your own piece of Australia!!