Funding and Budgeting
Before you commence any research into purchasing a property, the first step is to know if you can actually borrow the money required for the purchase including government fees, stamp duty, mortgage insurance and more. Speaking to a mortgage broker or lending specialist beforehand is vital. Once you have established how much money you borrow from a lender and have received loan pre-approval, you will then know how much you can spend. You should also complete a financial budget moving forward to ensure that you can afford to pay other annual costs such as council rates, water rates and water usage, internet, gas and electricity and other household running costs.
Search and Inspection
When you are inspecting a property there are many things to consider. Making a list of your “must haves” and “negotiable” requirements is a good place to start. Does the property suit your needs? Is the location close to work, schools, family and friends? Is it within walking distance to public transport, shops and easy access to freeways? Is the kitchen large enough? Are there enough bedrooms and living areas? Is there suitable car accommodation and off-street parking? What you also may want to consider is the street appeal and the vibe of the community. Once these personal requirements have been satisfied you then need to look at other important issues with the property. When inspecting the property, be sure to complete the following: –
- Turn all appliances on and off including heating and air conditioning systems, oven, stove, lights and any other electrical items to make sure they are in working condition;
- Test the taps for temperature and water flow and flush toilets to check water pressure;
- Hot water system, make sure it is not leaking;
- Check in cupboards and under sinks for mould or musty smells.
If you decide to place an offer on the property, we recommend that you include special conditions to make the contract subject to you obtaining a satisfactory building report, pest inspection report and/or swimming pool report (if applicable). We can discuss these conditions with you prior to making an offer.
Make and Offer
Once you have found a suitable property to purchase we recommend that you obtain a copy of the Section 32 Vendor’s Statement and the proposed Contract of Sale from the real estate agent. You should forward the contract documentation to our office for our review so that we may point out any issues in the Contract of Sale and Section 32 Vendor’s Statement that may be of concern. Upon request we can also make recommendations on special conditions to include in the Contract of Sale that can benefit and protect you. Once a Contract of Sale is signed by all parties the Vendor is not obliged to agree to any changes or requests by you. As such it is important that you document all of your requirements by way of special condition prior to signing the Contract of Sale.