Buying a new home

Buying a new home – walking through the buying process

The road to buying a new home can be a little bumpy, especially if you’re not really sure where to start. If you’re in the market to buy, there are a few things you can do to make the process smoother.

Get your finances in order
Financing is the first thing you need to consider when buying a new home. You need to demonstrate to a lender that you can manage a home loan, so it’s important to get all of your finances in order. Doing the following will help:

• Prepare a household budget that takes into account all your assets and liabilities.
• Find out if you are you eligible for assistance through government grants.
• Have savings equivalent to 20% of the purchase price of a property.
• Ensure you have additional funds that can cover stamp duty, legal costs and any inspections that need to be carried out.
• Demonstrate that you have an established savings habit that shows regular savings for at least three months.
• Get pre-approved for financing.

It’s crucial that you don’t overextend yourself financially. When preparing your financials, have contingencies that will cover shortfalls should things like interest rates or job security fluctuate.

Do your research

Once you have an idea of how much money you can afford to spend, it’s time to do some research. Your budget will determine what kind of property you can buy as well as the location.

Obviously choosing a location that is in proximity to your workplace or schools is important. If your plan is to live in the property for a handful of years and then sell, it’s important to consider factors that help with resale – being close to public transport, schools, shops and amenities is a plus.

Property inspection

If you’ve found a home you love, and you want to make an offer, it’s prudent to have the property inspected to ensure there are no issues. An inspector will check that the property structure, foundation, floors and walls are sound, and that the electrical wiring and plumbing are safe and in working order. A land/property survey and strata inspection may also be done.  It’s advisable that a pest inspection be carried out prior to making an offer as well.

Make an offer
Once you’ve found the ideal property, and it’s passed inspection, an offer can be made. The most common way to buy property in Australia is by private sale and it is generally done by verbal agreement (though a sales summary can be prepared by a solicitor and given to the vendor). When your offer is accepted, and you accept the sales contract, you’ll need to pay a deposit to the real estate agent – generally, 10% of the purchase price. The agent will keep the deposit in trust until the sale is finalised.

Settlement

Once all the contracts are signed, and the inspections and council checks are completed, it’s time for settlement. This is the day when you pay the seller the balance of the cost of the property. In return you receive the title of ownership.

Congratulations, you’re the proud owner of a new home!

After buying your home: have you considered property investment?

No two buying processes are the same and while the above gives a general rundown of what you can expect, there will be other considerations you’ll need to make. People are often confronted by the sheer amount of work that is involved when buying a home, which is why we recommend working with ParkTrent to buy your home.

Not only will we help you along the buying process, our experts will also assist with:

• considerations in your letter of offer
• providing different terms and negotiation options
• organising all inspections
• identifying tax benefits that can be claimed
• determining renovation considerations
• property protection.

We can also help if you are considering purchasing the property as an investment with a view to renting it out in the future.

ParkTrent is a full-service real estate company with more than 35 years’ experience helping Australian home buyers find their next dream property. How can we help you?
For more information about buying a home, please contact your local ParkTrent Real Estate office or call our customer service team on 1800 652 224.