Beginner’s Guide to Buy a Property in Sydney, Australia
Buying property can be a frustrating yet straightforward endeavor for the most. Even experienced buyers need some guidance. Though it is worse if you’re an inexperienced property buyer, the market can be full of unpredicted variables that can lead to outcomes that are not in your favor.
There are several factors that you need to take into account when you’ve decided to buy a home in Sydney, Australia:
- How much loan you can get?
- Getting the money
- Finding the right property
- Evaluation by a professional
- Making your offer
- Get all the necessary legal paperwork sorted
- Wait for the deal to come through
- The settlement
The first step to take when you’ve decided to buy your property is to determine your budget. How much are you willing to spend? What’s your financial status?
You need to look at how much you have in savings, if you have been saving. Or maybe you expect money from other sources.
Understanding the amount of you’re comfortable with can then allow you to plan on other things like monthly income, expenditure and everything that will affect your payment or loan in case you go for it.
With a budget, you’ll also be able to determine how much you can devote to mortgage repayments.
How much you can get?
This is the next step in property acquisition. You can raise the money to buy property through several ways. You could finance yourself if you’re 18 years and above and you have a well-paying job.
Another alternative is securing a loan. With a well-paying job and a good credit card history, it shouldn’t be a problem.
In Sydney, Australia, if you’re a student, you may fail to qualify for a loan due to your low income, but it’s possible through your parents. They can get the loan, and they buy the property for you through in their name.
The other option is getting a loan from a friend or someone you know and trust. You can have the property in their name or both your names.
What’s on the market
Once you have your financial situation sorted, it’s time to hunt for your dream home. You can do this through online searches, local real estate agents, newspapers, TV ads, or magazines. All these sources will help you find out the best deals that are currently available on the market.
You better brush up on negotiation skills on this in case you need to lower price and interest rates or want more features added on the property to sweeten the deal. You should also factor in other things like the location for security and privacy, parking, noise, and any special features.
Get the money
After finding the property you want, you can now go back to the bank, friend, or your wallet to get the money. This is the moment to find a broker or lender as you get all the necessary documents and proof of income.
They will issue you with a pre-approval certificate or even a home loan guarantee certificate.
Since loan approvals don’t last forever in case you opted for a loan, you can extend your pre-approval certificate or re-apply for a new one with your lender.
This is an essential step in the process of purchasing new property. You have to an inspector or an evaluation professional to come and do a house valuation for you.
The evaluation will cover areas like building inspections, property survey, electrical inspections, pest inspection, strata inspection, etc.
While the inspections might cost you, you will find it worth your every penny in the long run. Problems such as faulty wiring, plumbing, shifting foundations do occur and will cost you more in repairs in the future.
Make your offer
If your inspector has given you the green light and you’re satisfied with the property then and only then will you make an offer. Be flexible in your negotiations and keep out for other interested buyers.
The last thing you want is to get outbid by only a few hundred dollars while trying to get a lower price.
Get all the necessary legal paperwork sorted
With the price agreed by you and your lender, it’s time to draw up a contract. Go over the contract with your attorney to ensure there are no gaps or loopholes that could spring up any legal surprises. Make sure the contract is something you agree with before signing it.
Wait for the deal to come through
This is usually the hardest part as you may end up with anxiety, trying to wait as everything gets sorted out. You need to relax through this period and let the professionals do their work, and there is plenty to do before you get the title ownership.
Usually, the whole process takes around six weeks as it goes through government departments, surveyors, heritage orders, council checks are all done.
On this day, you and your representative will exchange the cheque with title ownership. Once done, you should notify the relevant government departments of the change of ownership through your solicitor.
You should also insure your property the moment you complete the contract, and you have ownership.
Buying your first property can be quite hectic if you’re an inexperienced buyer. A lot can go wrong and cost you a fortune trying to fix them. With the proper guidelines, you will not only be able to do it right but also have it easy.