Buying a house is a huge step and, at the same time, a perfect one. The process can be overwhelming, especially if you do not know the first thing about real estate or buying a landed property. To lessen the burden, here are five steps to guide you while buying a house in Australia.
#1. Decide on Your Budget
Buying a house in Australia can be very expensive, so it is necessary to make proper plans and budget before getting one. Budgeting involves being aware of your income and living expenses and the ability to repay loans and mortgages.
This is because Australian banks won’t lend you loans without valid proof that you can repay. You might have a particular home or location in mind, but you must be sure that it is something you can afford.
#2. Compare Home Loans
Not everyone can afford to pay off their homes right off the bat. For anyone needing a loan, it is vital that you compare different options for getting a home loan.
Also, the terms of the loan and the interest rate are essential things that should be considered. To avoid issues, ensure that your loan has been pre-approved before looking for a house. Doing this saves you a lot of time and stress. Some banks offer conditional approval that lasts three to six months which is also an option to consider.
#3. Start House Hunting
You can either personally house hunt or use an agent. Your budget will make it easy to find houses within your price range. Some other factors that should be considered while house hunting is convenience, the layout of the house and its features, and other general concerns about the location.
You can start house hunting through real estate platforms, where you can find new properties for sale and auction. It’s convenient to use property hunting platforms because you get the latest feature listing in the Australian market in just a few clicks of your mouse on your computer or mobile device.
Each property listing in a real estate platform has a detailed description. You can also find the right real estate professional to contact for faster and safer transactions. In addition, real estate listings in these dedicated platforms are always up-to-date, allowing a detailed comparison of available multiple properties. Learn more here to find the best properties in the area you prefer.
#4. Negotiation and Purchase
This stage is where offers are being made on the house. You can buy the house at an auction or via a private treaty. But the latter gives you the option of negotiation. Negotiations can be done directly with the seller or through real estate agents. Prior research about the prices of similar houses gives you an edge while negotiating.
You also have the chance to do a light inspection of the place to ensure there are no issues. This stage also involves contracts being signed by both parties. Buyers should, however, not commit themselves to buying a property until their mortgage is formally approved or unless there is a cooling-off period.
#5. The Settlement Process
At this stage, contracts are being signed, and you are now in the cooling-off period. This stage is when you thoroughly inspect the house, preferably by professionals. You should also confirm the terms of the settlement. You should frequently contact your lawyer to make sure everything is settled.
The settlement period is within 30 to 90 days, wherein the date is set by the seller. During the settlement process, all rates and charges can be adjusted as mutually agreed by the buyer and the seller. The settlement date involves the buyer paying the purchase price balance to the seller.
At this point, the buyer gets the property title, becomes the registered owner, and can take the keys from the real estate agent to possess the purchased property. The buyer pays the land transfer duty on the sale.
Buying a house in Australia can be a life-changing experience, so it should be done the right way. Comparing home loans, getting loans approved, and going for inspections may seem time-consuming, but time is just one of those investments you’ll have to make into getting your dream home.