Congratulations! Buying a new home is an exciting endeavour. To ensure the process runs as smoothly as possible for you, here are some checklist tips to guide you through.
BUDGET & FINANCE
If you require finance, you can either contact a broker, chat with your bank, or fill in an online application and make a list of all the items they require from you to commence the process.
Get familiar with current interest rates and the difference between a fixed/variable/split (fixed & variable) home loan. It’s also important to consider the benefits of an offset-account which reduces your home-loan interest rate whilst providing the flexibility to access funds when required.
Factor the importance of life and income protection insurance.
If you plan to buy at auction, arranged a pre-approved loan. You cannot make the contract of sale subject to finance without the vendor's agreement if you buy at auction.
Factor professional services and fees (we touch on these below)
If you are buying a semi, apartment, or townhouse, you will need to weigh-in ongoing strata fees and be mindful of additional expenses which can arise outside of standard strata costs. It's also important to check if the strata account has sufficient funds to cover any potential major expenses - otherwise, you as the new owner will need to cover a portion of these costs.
(a) Confirm how much money is in the strata account.
(b) Ensure the property has been properly maintained and up to code.
SELECTING THE RIGHT HOME FOR YOU
Selected your preferred suburb/location
Understand which features you want in a property (number of bedrooms, bathrooms, air-conditioning, pool).
Home type: house, apartment, semi or townhouse?
Home design: brick, cladding, concrete
CONSIDER THE PROXIMITY OF LOCAL SERVICES
Bus stop
Train station
Walk & bike track
Parks
Local shopping centres
Major hospitals
SAVVY BUYING DECISIONS
To gauge the market, compare the value of recently sold properties in the area.
Develop a strategy for bidding at auction.
Be prepared with your offer limits - keeping in mind any spare money you will need to set aside for any range of expenses including: moving, potential interest rate increases or repairs to the property.
Ask how long a property has been on the market and why it’s up for sale.
Gather intel regarding the 10-year council plan – this can significantly impact your properties future value.
Does the property have potential to expand with either a second or third level, second dwelling (granny flat), outdoor entertaining.
PROFESSIONAL SERVICES & CONTRACT CONDITIONS
Arrange the necessary professional services and add the costs to your budget: banker/broker (mortgage registration fee, transfer fee, lenders mortgage insurance, stamp duty), estate agent fees, conveyancer or legal practitioner, building inspector (structural and pests such as white ants).
Arrange a building inspection. If buying at auction, make sure you get the inspection report before the auction, as you cannot put conditions on the contract of sale at an auction without the vendor's agreement
Make the purchase subject to a building inspection for a private sale.
Arrange a pest inspection. Before auction, as you cannot put conditions on the contract of sale at an auction without the vendor's agreement.
Understand your cooling-off rights
Asked the agent to confirm items which appear to be fixtures of the property including chandeliers, blinds and the like.
COMPLIANCE CERTIFICATES & WARRANTIES
Inspect all major appliances are in working order including hot water, air-conditioning, ovens, solar, and obtain manuals and warranties where still relevant.
If the home has a pool: ensure there is a pool safety certificate or compliance certificate. This will tell you that the pool meets the safety regulations for the state. If the pool isn't compliant, it could cost you time and money to bring it up to standard.
If the home has undergone major renovations, ensure these have been certified by council before you exchange.
Arrange a qualified engineer to inspect the property. They will know what to look for and will see through any cosmetic improvements that cover up faults. The written building inspection report will list: any faults in the property. whether they can be repaired.
Test all lights and power-points in the home are in working condition.
Inspect the switchboard and if the home is old, consider the option of needing to rewire the house and add a new board.
ADDITIONAL CONSIDERATIONS
Speak with your potentially new neighbours to get a feel for the neighbourhood.
Make a list of all the extra costs you will encounter after sale if the property requires work (cosmetic or structural). Read our "WHAT TO CONSIDER WHEN OBTAINING QUOTES"
Fixing damaged driveways
Replacing eaves and gutters
Painting
Replacing carpets
Consider if the property is a high, medium or low maintenance home for your lifestyle needs.
Storage: Is there sufficient storage to assist with comfortable living?
For quote requests and enquiries E: admin@piercretegroup.com.au
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