If you want to buy property in Australia and have found your dream home, don’t rush into signing the contract. There are certain steps you can take to avoid future complications.
Without proper planning, your home can become a financial burden. such as facing hidden costs, ownership concerns, and costly unplanned maintenance can all be stumbling barriers. To avoid this, the following are nine crucial procedures before purchasing property in Australia.
1. Check Your Finances
Before purchasing, take a close look at your finances. Check your credit score, calculate your income, and determine how much you can comfortably afford. In Australia, your credit history plays a significant role in securing a home loan with a favourable interest rate.
2. Set a Realistic Budget
Don’t just consider the price of the house. Also factor in property taxes, insurance premiums, strata fees (if buying an apartment), and ongoing maintenance costs. Also factor in conveyancing fees and property transfer fees (stamp duty), which can vary by state. If purchasing a strata-titled property, consider the quality of the strata management, as poor management can lead to higher fees and unexpected costs in the future.
3. Get a Home Loan Pre-Approval
Applying for a pre-approval from a bank or financial institution will give you a clear picture of the price range of the home you can purchase. It also shows the seller that you are serious and have sufficient funds.
4. Research the Location and Surrounding Area
Location is a key factor in property investment. Make sure it is good access to public transport, as well as amenities such as schools and hospitals, and consider the potential for property value growth in the area. Also, research the potential for property value growth and understand local zoning regulations and future development plans.
5. Hire an Experienced Real Estate Agent
Hiring a real estate agent, especially a buyer’s agent, can be extremely helpful. They can find you a property that suits your needs and negotiate the best price.
6. Conduct a Thorough Property Inspection
Before buying, schedule a building and pest inspection, and check the property’s structural integrity, electrical system, plumbing, and any signs of termites, especially in older homes.
7. Review the Property’s Legal Documents
Make sure the property has clear title and is free from legal issues such as caveats or easements that could limit land use. If purchasing an apartment or unit, review the strata report to understand the community rules and applicable strata fees. It is advisable to consult a local conveyancing expert to ensure all legal aspects are thoroughly checked before proceeding with the purchase.
8. Calculate Additional Costs and Closing Costs
You also need to calculate other expenses such as stamp duty, legal fees, conveyancing fees, and property lawyer fees. Stamp duty in Australia can reach tens of thousands of dollars depending on the property price and location.
9. Plan for the Long Term
Are you buying to live in or as an investment? If for investment, consider factors such as rental demand, capital growth, and potential changes in property tax regulations in the future.
Buying property in Australia requires research, patience, and a strategic approach. By following the steps above, you can ensure that the home you purchase is truly a comfortable place to live or a profitable investment.
