The steps which occur when you buy property in Australia
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.
Today we’re going to talk about the steps which occur when you buy property in Australia.
Many buyers start in the middle of the buying process.
My recommendation would be to start with your finance before you even start looking at properties.
Once you have a clear understanding of your numbers.
You can start to research various markets which may suite your needs.
These will obviously be dependent on whether you will be investing or living in the property.
When you actually have a few markets you are keen on.
You can finally start to look at properties.
Some key points are not to get too emotional about a specific property, if possible.
The more offers you make, the better in my opinion.
They will give you feedback and an understanding about the property you otherwise would not have had.
When you negotiate a property.
It would be wise to understand local market sales.
And what the property is actually worth.
If you can understand the current market value.
You are in a much better position to determine whether the offer you want to make is good or bad.
Once the negotiation has been successfully achieved.
You will usually sign the contract to exchange and pay a nominal deposit to get the property off the market for a period of time.
Usually 5-10 days, to complex further due diligence.
Your solicitor/conveyancer will usually review the contract during this period of time.
In a house you will get a pest and building inspection and in a strata complex a strata report.
Your mortgage broker/bank will usually organise an unconditional approval and ensure the valuation on the property is correct.
Assuming all these things go well.
You will pay the balance of 5% or 10% to exchange unconditionally on the property.
Then enter into the settlement period, which is usually upwards of 30 or 40 days.
When settlement occurs, your finance will come through depending on the LVR you were able to achieve with your lender.
And you will potentially pay some more deposit depending on this LVR.
Stamp duty or transfer duty will also be payable to the government.
Hopefully you’ve got a slightly better understanding of the steps invalided in buying a property in Australia.”