Canberry.
UNDERSTANDING THE BUYING PROCESS
Before you start Do your homework first to make the process easier. Here’s some of the main steps to take.
How much can you borrow? Talk to your bank, building society or mortgage broker to find out what you can borrow. If possible, see if you can get your loan pre-approved.
You’ll need this information when applying for a loan • job history and income information • deposit – you’ll need 10% to 20% of the purchase price • monthly expenses • credit history • debts • assets • other loans
BEFORE YOU START
BEFORE YOU START
Three things to do FIRST 1.Talk to Canberry We’re experts on property in Canberra and can bring you up to speed fast.
2. Check out property market data A couple of great websites to explore are: • CoreLogic • Australian Property Monitors You can drill down to any location or area to find specific information you’re looking for. If you want to visit the local government website of your desired area, you can find out more about planning issues, development or building regulations.
3. Look at recent sales data We can tell you all about recent Canberra sales. Ask away. You can find information on homes sold recently or historically on other real estate sites. Use their advanced search functions to refine your search.
Location, location, location It’s a cliché because it’s true. A great location will appreciate quicker and higher in value, but there are many factors to consider.
You want a place that allows you to live how you want.
BEFORE YOU START
Consider these key points when you think about location • • • • •
Is the location in my buget? How close are parks and schools? How far to commute for work? Can you walk to shops and services? Are there any developments that could raise/lower property prices? • Any views or appealing aspects?
THE PROPERTY YOU WANT
How to find and buy the property you want Looking for your home
Put in the time to make sure you’re informed.
Key things to do
As you inspect properties
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•
go to open home inspections
think about and note down your wish list
•
speak with agents
•
explore
preferred suburbs
neighbourhoods
to live in
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check out auctions
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narrow down your
go to many open inspections to accurately assess prices
•
explore social media and forums for local news and views.
THINGS YOU NEED TO KNOW
Due diligence Avoid future minefields. Do a detailed inspection of the property.
Things to ask the agent • • • • • • • • • •
Can you tell me anything about the area? Has the property had any recent renovations? What are comparable sales from the last 3 months? What are the council rates? Are there any restrictions on the property? Any planned zoning changes? How long has it been on the market? Have they received any offers and if so, how much? Are the vendors flexible on price? Are they open to offers before the auction?
THINGS YOU NEED TO KNOW
Pest and building inspection Don’t buy before you book a pest and building inspection, and/or a strata report. These can all find problems you can’t see.
Review the contract You must ask your conveyancer or lawyer to review the Contract of Sale.
What are the 3 ways to Buy a property? 1.Auction
What is an auction? A public sale where the property is sold to the highest bidder by a licensed auctioneer. What is the reserve price? The least amount the owner will accept for the property. What is ‘passed in’? If the reserve price is not reached, the property is ‘passed in’. The highest bidder and the agent can then negotiate to try to agree on a price that suits buyer and seller. • • •
Advantage of auctions
a benchmarked price due to open, public bidding instant result highest bidder wins if the reserve is reached.
2.Private treaty / private sale
This is the common way of buying a property. The owner sets a price, but the selling price is often negotiated with the buyer before the sale. Advantages of private treaty • • • • •
flexibility – a contract can specify conditions like repairs, a building inspection or financing more time – less pressure than at an auction more price certainty inspection reports can happen after you buy the property, not before you bid a cooling-off period.
3.Tender / expression of interest
In this buying method, you submit an offer to buy a property on a specific time and date. The seller reviews the offers, accepts one or sells the property later by another method. This type of selling is usually associated with rare, unique or expensive properties. Advantages of tender / expression of Interest • • • •
there is urgency created by the ‘ticking clock’ of the deadline your offer can be confidential the selling price can be kept discreet the competitive process can determine an accurate market value of the property.
WAYS TO BUY PROPERTIES
The 4 STEPS of Settlement Step 1 – Contract of Sale
The Contract of Sale is a legal document that protects both parties. It contains all the key information about the property sale. Subject to any cooling off period, it binds you legally to follow through on the terms of the contract.
Step 2 – Getting ready for settlement
After you sign the contract, there is a period of about 6 weeks for you to organise financing and for the seller to do any special conditions noted in the contract.
Step 3 – Inspection pre-settlement
You can inspect the property before settlement to see that any repairs or conditions required in the contract have been completed.
Step 4 – Complete the transfer docs
Both parties satisfy the contract terms. The seller makes sure all property taxes, land transfer duty and water rates are paid. Your lender pays the balance of the purchase amount and the agent transfers the deposit held in trust to you. It’s all done (settled) the transfer documents are sent to the land registration office. The property is now yours and you get the keys.
Live Where You Love