- Planning Ahead
- Making an Offer
Plan Ahead
Buying a house can be a very intimidating process, especially if you have never done it before. So the first thing you should do is start planning! The top questions to ask when planning include:
How much can I afford?
Before you pick up the newspaper and start looking at the property section, purchase a money magazine and start reading about the different mortgage products available. Talk to friends and financial advisors about what is the best type of loan for you. Once you have chosen a financial institution, you should then arrange an appointment to speak to a lending manager. Don't forget to get copies of your bank statements, payslips and other financial information ready for the meeting. With the guidance of the lending advisor, you can then decide how much you can safely borrow.
Where do I want to live?
Once you know how much you can borrow, you can then start to choose what houses to look at. Firstly make a list of all the suburbs you would consider looking in and look up houses in these areas on the internet. Once you have a few houses in mind, ring up the real estate agents and arrange a visit. Don't be pressured in to buying to quickly, it is often said that a good buyer will visit 10+ different houses before deciding on which one to buy.
Handy Hint: Grab a scrap book and cut and paste newspaper adverts of possible houses that you are interested in, alongside the date. After a couple of weeks you will be able to see if the local housing market is rising or falling in your house bracket.
What solicitor and inspection services will I use?
Now is also the time to talk to family and friends about a good solicitor, property lawyer of conveyancer to use. It is a good idea to ring around and ask for a flat fee price. My first lawyer wouldn't give me this and I got stung with all sorts of ridiculous fees from stamps, photocopying, stamps and petrol to deliver the mail to the letter box!
You will also need to decide what inspections services you will use and quotes to obtain:
- Building inspection. This inspection is carried out by a qualified builder to check the house is structurally sound.
- White ant inspection. This is carried out by a qualified pest controller to check for any evidence of termite damage.
- Property Survey. This carried out by a surveyor to check that the fences are correctly aligned and the size of all the buildings.
- Council Approvals Certificate. This is carried out by your local council to check that all building approvals have been obtained for the property.
So once you have decided on a property, it is time to make an Offer!
Making an Offer
Making and can be the most exciting part of buying a house, next to getting the keys and moving in. Once you are sure that that you like the property you just let the agent know how much you are willing to pay for it. If the owner accepts the offer, then the first stage of buying process is over, provided you don't get gazumped by a higher bidder. Once accepted, the real estate agent may then as for a holding deposit of around 10% and for the details of your conveyancer.
Financials.
Once an offer is accepted, you will then need to contact your lending manager to arrange to fill out a loan application. The lending manager should be able to help you through this process.
Conveyancing
The most painful part of buying a house is the conveyancing. All the excitement that you built up when you made an offer seems to get stretched out over 6-8 weeks, while the exchange of legal documents takes place.
Once an offer is accepted, you will need to make a meeting with your conveyancer. The role of the conveyancer is to handle all the legal matters associated with the property transaction. The conveyancer can also organise for
- The inspections to take place on the property
- All government fees and charges to be paid
- All government first home owner buyer incentives to be received
- All outstanding council, water and electricity rates to be paid
Handy Hint: In many countries there is a cooling off period, where you can legally back out of any offer you made to the owner. As compensation however, the owner can keep up to 2.5% of your deposit.
Once the conveyancing period is over, you can then pick the keys up from the real estate agent for your brand new home! Enjoy!
