15 Sep 5 ESSENTIAL THINGS YOU NEED TO DO WHEN PURCHASING PROPERTY

Posted at 12:52h in Buyers Agent by

You’ve finally found the property of your dreams, so what now?

images-11. DO YOUR HOMEWORK:

Make sure you’ve asked all the right questions, such as:

  • How long has the property been on the market? (too long means there is either something wrong with it or it is overpriced – which can work in your favour)
  • Why are the owners selling? (they may have already have bought and need to sell)
  • Can you show me comparably priced properties that you are basing your asking price on?

2. CALCULATE YOUR FINANCES:

Stamp duty is a killer so make sure you factor this into your calculations before you make an offer on a property. In NSW it is approximately 4.7% of the purchase price. If you are a foreign buyer, there is an additional 8% stamp duty surcharge plus 4% land tax surcharge based on the land value. Changes to interest rates are pending, so make sure you allow some wiggle room with your repayments in the event that interest rates go up.

3. NEGOTIATE TERMS OF DEAL:

Request a 5% deposit rather than the standard 10% deposit. You are still liable for the full 10% in the event that you do not complete the purchase but you could be earning interest income on that money. The vendor might not agree to this but it is worth asking – either through the selling agent or your solicitor / conveyancer. The length of settlement is also up for discussion. The standard settlement is 42 days however it can be slightly shorter and is often longer so don’t be afraid to negotiate this point. Also make sure that your solicitor has requested that the new tax clearance certificate is included with the contract as part of settlement.

4. RESEARCH WHAT YOU ARE BUYING BEFORE MAKING YOUR OFFER:

Make sure you have a strata inspection done on an apartment prior to making an offer. This lets you know about the financial health of the apartment complex and body corporate as well as any issues with your particular apartment. Have a building and pest inspection done on a house prior to making an offer on the property. The building inspection reveals if there is anything wrong with the house and the pest inspection let’s you know whether there is any termite damage. Again, make sure you have this performed before you make an offer on the property.

5. ACT DECISIVELY:

If you want to secure the property, make an unconditional written offer rather than a verbal offer – unless you are bidding at auction.

Bernadette Brennan is the Director of Premier Home Finders, a Sydney based real-estate buyer’s agency.

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