Buying a property is a major decision which involves planning, research and careful budgeting. Here are some helpful hints when buying a property:
- Visit your bank or a mortgage broker to establish your budget and work out a loan to suit your needs.
- Choose the area that you want to live in.
- Make a list of what features you’re looking for in a property. For example, house or unit, number of bedrooms, new or old building, etc.
- Research – go and view other properties in the area which are similar to what you are looking for. Find out sales results in newspapers and online.
- When you find a property that you are interested in, request a copy of the contract to be sent to your solicitor and find out if a building and pest inspection needs to be done.
- If your solicitor is satisfied with the sales contract and you want to proceed with purchasing the property you can submit an offer to the vendor (the person selling the property). Your offer can be made verbally or in writing.
- Once negotiations have finished and both parties are satisfied with the contract, you will need to sign the sales contract and pay a deposit. This is usually 10% of the sales price. The vendor will then sign their sale contract and at this point contracts will be exchanged.
- Before settlement you have an opportunity to do a final inspection of the property. This is often done on the morning of the settlement. It’s always a good idea to take advantage of this opportunity. On settlement day, at an agreed time and place your solicitor meets with your lender and the vendor’s representative to sign and hand over documents and cheques – neither you nor the vendor need to be there. Documents are then sent to the titles office to register you as the new owner.