As the saying goes “by failing to prepare, you are preparing to fail.” Before starting your property search there are many tasks to carry out. Putting in the necessary preparation will give buyers a higher probability of a successful outcome.
It pays to engage my services early in the buying process as I will guide you through the important preliminary stage.
Below is my Pre-buying checklist;
o See a bank manager or mortgage broker to obtain finance. Don’t over commit, allow for increases in loan borrowing rates.
o Check what concessions apply in your situation e.g., stamp duty, grants, deposit subsidies, pensioner concession etc.
o Do your figures considering conveyancing costs, stamp duty, buyer advocacy fees, lender’s mortgage insurance and bank application fees etc.
o List all of your lifestyle inflows & outflows. What are the consequences of interest rates rising, ill health or job loss?
o Make sure you have immediate access to a 10% deposit. You may have to act quickly to secure a good opportunity.
o Check with your lender regarding minimum floor area requirements if buying an apartment.
o Check your residency status. What type of property are you allowed to purchase? Do you require Foreign Investment Review Board approval?
o Work out exactly the type of property you want to buy e.g., size, location, style etc.
o Contact selling agents in the areas you are looking so they can place you on email alerts. Although remember, you have to be proactive in your search. Selling agents work for the vendor.
o Attend auctions and open for inspections in the areas you are interested in buying so you become familiar with value.
o Become familiar with the relevant real estate advertising web portals and register so that you can receive email alerts.
o Engage the service of a buyers’ advocate early in the process. (Hopefully me)
o See an accountant or financial planner to discuss which entity the property will be purchased in. e.g., personal name/s, trust, Self managed super fund, company etc.
o Discuss taxes such as GST/VAT, land tax etc with your accountant.
o Start speaking to conveyancers or lawyers as their service will be required during the conveyancing process.
o Become familiar with building/pest inspectors in your area.
o Consider settlement periods you require.
o Speak to insurance companies regarding building/contents insurance.
o If you are looking to buy a home and are currently renting do not sign a new fixed term lease. It is better to rent on a month-to-month basis.