Buying a Property

Buying a property requires a considerable amount of research, time, commitment and planning. The process outlined below suggests some simple steps to consider before you start your property search.

HOW MUCH CAN YOU AFFORD?

The first things to do before your search for a property is determine how much you can afford and the area in which you wish to buy. There’s no point setting you heart on something you can’t afford. Once you establish how much you can borrow and afford to repay you will have a realistic idea of what you can buy. Researching recent sale sand the price of properties on the market should give a good indication of property values and an understanding of the real estate market in the area in which you are looking to buy.

IDENTIFY YOUR PRIORITIES

Select the location It has been said many times before but one of the most important considerations when house-hunting is the location. Choosing the right location is vital not just because it may add value to a property but because you (or your tenants) will have to live there too. Look for up and coming areas and consider the edge of popular areas. The so-called ripple effect is the most common reason for prices to rise in an area. If you can’t afford the street or suburb you desire you may wish to consider neighbouring areas, especially if want a bigger house. It is also important to be aware of any future development plans for your target areas, which could impact, on the property’s value or your quality of life.

When short listing suburbs it is important to consider proximity to transport, schools, shopping centres, recreation and local facilities and other amenities that are important to you. Type of property A house is likely to be the most expensive type of property but for good reason. You are distanced from your neighbours and will generally have garden. Semi-detached houses, terraces and townhouses usually have an outdoor area and a degree of privacy however, they are likely to be noisier than a house due to their proximity to neighbours. Apartments on the other hand are generally smaller and more likely to be noisier than houses however, they tend to be more affordable and easier to maintain. Putting together a shortlist of things that are important to you in a home is a good idea.

CONVEYANVCING

If you want to buy or sell a home, land or investment property, you’ll have to sign a contract. The legal work involved in preparing the sale contract, mortgage and other related documents is called conveyancing Most people employ a Conveyancer/Settlement Agent or Solicitor to do the legal work involved. The conveyancing process can involve the following steps

• Examining the contract of sale

• Examining a strata inspection report if the property is part of a strata scheme.

• Arranging payment of stamp duties

• Checking any outstanding arrears or land tax obligations

• Finding out if any government authority has an interest in the land or if any planned development could affect the property

• Finding out any information that may not have been previously disclosed such as a fence dispute or illegal building work

• Calculating adjustments for council and water rates for the property settlement

• Completing any final check prior to settlement

• Arranging payment of stamp duties

• Overseeing the change of title

• Exchanging the contract of sale and paying the deposit

• Arranging finance if necessary

• Arranging building and pest inspections

• Preparing and examining the mortgage agreement