a property is one of the most important things that many people do in their lifetime
and it is also quite often the most expensive purchase that people will ever make.
is very important to do this properly and seek advice from experienced professional
people to ensure that it is done properly.
information is produced by the Real Estate Industry Association Inc to assist
people PLAN prior to purchasing a property.
· LOCATE A PROPERTY
you have a property already identified that you would like to purchase then you
have made a good start. If you have not yet identified a property that you would
like to purchase then you can obtain the assistance of a real estate agent. You
can ask any real estate agent to help you however we would recommend that you
use a member of the Real Estate Industry Association because he has pledged to
abide by the Code of Ethics of the Association. A copy of the Code of Ethics is
available on request from any member's office. The real estate agent will then
show you properties that he has available for sale. You can use more than one
agent if you wish to. When you have selected a property that you like and the
price is suitable then you are well on the way.
· CHECK THE VALUE
sure that the price for the property is reasonable. If you are using a real estate
agent ask him if the price is reasonable. If you are unsure that the price is
reasonable then request a valuation of the property to be done by a registered
valuer. Your real estate agent can arrange this for you. A valuer will charge
a fee for doing a valuation but you will receive a certificate which will show
how much the valuer believes the market value of the property is. If the valuation
shows that the purchase price is fair then you can proceed. If it doesn't then
you should continue to negotiate the price. The real estate agent can help you
· PLACE A DEPOSIT
will be required to lodge a deposit on the purchase with the real estate agent
or the lawyer acting for the seller. The deposit is usually 10% of the purchase
lawyer acting for the seller will prepare the Contract for Sale. You will need
to engage a lawyer to look after your interests. You will have to pay a fee to
your lawyer for acting for you. Your lawyer will be able to give you a quote for
his fees before he starts to act for you. Ask for your quote in writing. Advise
your lawyer of any special conditions related to the purchase especially if you
require finance to help purchase the property otherwise you might not be able
to get your deposit back if the purchase doesn't get completed.
people get a loan when they buy a property. Make sure that you check for the best
possible loan with the best possible rate. Inquire from your bank how much you
will be able to borrow before you look for a property so that you are able to
select a property that you can afford to buy. Also make sure you know the value
of your assets and your superannuation entitlements.
you have signed the Contract you should have Insurance on the improvements located
on the property. Consult your insurance company or seek quotes for a cover suitable
the improvements located on properties are subject to GST. You should check if
the property that you wish to purchase is subject to GST before you pay your deposit
and determine the amount of GST payable if it is.
· GOVERNMENT CHARGES
people are able to get a discount on Stamp Duty and other charges when special
conditions apply eg first home loan. Check with your lawyer if you are eligible
for a discount.
you are using an agent to help you buy your property then you are not usually
required to pay the real estate agent for helping you. The real estate agent is
usually acting for the person selling the property and the person selling the
property is the one who pays the commission to the agent.
are not usually able to get early possession of the property that you are purchasing.
You must wait until the date is set by the lawyers for settlement of the purchase.
Once the settlement has taken place you are entitled to take possession of the
lawyers and the banks will do the settlement of the purchase after the Lands Dept
has agreed to the transfer of the ownership of the property.
you have any further queries please contact a Real Estate Industry Association
Member or your lawyer.