Whether you’re purchasing your first home, upgrading, or downsizing, this guide will help you navigate each stage of the home-buying journey, from initial research to final settlement.
This guide is divided into five key sections, so if you’re already further along in the process, feel free to skip ahead to the relevant stage:
- Preparation
- Finding a Property
- Property Inspections
- Due Diligence
- The Home-Buying Process
- Preparation: Setting Your Budget and Search Criteria
Before you start looking for properties, the first thing to do is establish a budget. Several factors will influence this:
- Your deposit size
- Your borrowing capacity
- Your comfort level with debt
- Upfront costs, such as due diligence and stamp duty
- Interest rates, and whether you’re opting for a fixed or variable-rate loan
It’s wise to consult a mortgage broker early in the process. They can help determine how much you can borrow, offer advice on various loan options, and help you understand your purchasing power.
For first-time buyers, check if you’re eligible for any grants or incentives, which could reduce your costs.
Make sure to factor in all the upfront costs to avoid surprises later on.
Setting Your Criteria
Next, consider the type of property you’re looking for. If you’re purchasing with a partner, be prepared for some negotiation to align your preferences. Think about:
- The number of bedrooms, bathrooms, and parking spaces you’ll need
- The property type, such as a house, apartment, or townhouse
- The overall size of the property (for apartments, this means floor space; for houses, it’s the land size)
Additionally, narrow down the area where you’d like to live. Consider factors like proximity to work, schools, transport, parks, and other amenities.
While these criteria might evolve as you look at properties, it’s helpful to have an idea of your preferences before you begin your search.
- Finding a Property
Once you’re ready to start searching for a home, platforms like property apps and websites can make it easier to filter listings by location, price, and features.
- Enter your preferred area and set your property specifications
- Create a shortlist of properties you’re interested in
- Use property alerts to be notified of new listings and off-market properties
Contact real estate agents to inquire about properties and schedule inspections. Share your shortlist with family or partners, and use tools like inspection planners to organize your schedule.
- Property Inspections
Property inspections are crucial for determining if a home is right for you. These typically occur on weekends and sometimes on weekdays, usually lasting about 30 minutes.
Before attending inspections, create a checklist with your must-have features, desired additions, and deal-breakers. This will help you stay focused as you view properties and make it easier to compare them later.
Take notes and pictures during inspections, documenting both positive features and potential issues. Pay attention to:
- Natural light and room sizes
- Street noise and traffic
- The property’s orientation (e.g., which direction it faces)
- The age and condition of key areas like the kitchen and bathrooms
Be sure to ask the agent important questions, such as:
- When was the property last renovated?
- Why is the current owner selling?
- Are there any ongoing issues with the property?
If you find a property that interests you, consider inspecting it multiple times before making an offer.
- Due Diligence
Due diligence involves conducting thorough checks on the property to avoid costly surprises later. It’s a good idea to budget for these investigations, as they can add up.
- Building and Pest Inspections: A professional inspector will assess the property for structural issues or pest infestations. The report will provide insights into the property’s condition, including areas that may need repairs.
- Strata Report (for apartments): This report will reveal building-related issues and provide information on the building’s finances, including the state of its reserve fund and any upcoming special levies.
- Contract Review: Once you’re satisfied with the inspections, have a solicitor or conveyancer review the contract for any conditions, clauses, or restrictions that could affect the sale.
This stage is essential to ensure you’re making an informed decision before committing to the purchase.
- The Home-Buying Process: Making an Offer and Finalizing the Sale
Once you’ve inspected a property, reviewed the necessary reports, and secured home loan pre-approval, you’re ready to make an offer.
- Making an Offer: Determine a fair offer based on market conditions and comparable property prices. Submit the offer in writing through the agent, including conditions like repair requests or deposit details.
- Bidding at Auction: If the property is up for auction, set a clear budget and stick to it. Auctions can be competitive, so having a firm upper limit will help you avoid overspending.
- Settlement: After the offer is accepted, there’s typically a 6-week settlement period during which both parties finalize the transaction. On settlement day, you’ll pay the remaining balance and officially take ownership of the property.
By breaking the process down into these clear steps, buying a property becomes a more manageable task.
If you have any property inquiries, please feel free to contact Sunny at 0415 597 640.