Buying a house process in NSW
Buying a house process in NSW, Australia can be quite challenging and typically involves the following steps:
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Research: Look for properties that meet your needs and budget.
Determine your budget and requirements: Before you begin your search, it’s important to know how much you can afford.
Research different suburbs: NSW is a large state, with many different suburbs to choose from. Research the areas that interest you and compare them based on things like safety, school zone, and access to public transportation.
Use online resources like realestate.com.au & domain.com.au that can help you search for houses in Australia.
Contact a real estate agent: Real estate agents have access to a wide range of properties and can help you find the perfect home based on your budget and requirements.
Property inspection: Once you’ve found a few properties that interest you, it’s important to inspect them in person to get a feel for the area and see if the property is a good fit for you.
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Pre-approval: Get pre-approved for a mortgage to know how much you can borrow.
Before you prepare any documents for your home loan, you can either go directly to the bank or an independent mortgage broker who deals with multiple banks and may be able to provide you with better rates and other financial products.
Once you have decided to either go with the bank or the mortgage broker, simply follow their instructions in getting the loan pre-approved. They may require you to gather various personal and financial information, as well as any supporting documentation.
Submit your application: Once you’ve chosen a lender, you can submit your application for pre-approval.
Wait for approval: After submitting your application, the lender will review your information and decide on whether to approve your loan and any other conditions attached to the pre-approval. This process can take anywhere from a few days to a few weeks, depending on the lender.
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Find a conveyancer.
In NSW, you will need a conveyancer when you are buying or selling a property. A conveyancer is a professional who specializes in the legal aspects of property transactions, and can help guide you through the process.
When you are buying a property, a conveyancer will review the contract of sale and ensure that the title is in good order and the property is free from any encumbrances or liens. They will also assist you in arranging the transfer of the title and handling the settlement process.
It is important to note that conveyancer is different from a solicitor, a solicitor can also do the same work as a conveyancer, but a conveyancer is more specialized in property matters.
It is important to hire a professional conveyancer to ensure that your transaction is completed smoothly and that you are protected from any legal issues that may arise.
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Purchasing a property:
Property can be purchased either at an auction or through private sale.
Auction:
An auction is a public sale of a property where interested buyers bid on the property in an open competition where the final selling price is determined by the highest bid at the end of the auction.
Auctions are usually held on a specific date and time, and buyers are required to register with ID. If a bid is accepted, the buyer will be required to pay a deposit on the day of auction and sign a contract, with the balance of the purchase price due at settlement.Private Sale:
The property is put on the market with an advertised price and interested buyers can make an offer, which the seller can accept, decline or negotiate.
Buyers and sellers can negotiate the price and terms of the sale, and when they agree, the buyer will sign a contract of sale and pay a deposit with a minimum 5 day cooling off period.
The balance of the purchase price is due at settlement, which is usually 6 weeks in NSW after the contract is signed. -
Conduct Building & Pest Inspection:
In New South Wales, Australia, building and pest inspections can be conducted during the cooling off period, which is typically 5 business days after the contract of sale is signed. To conduct the inspections, the buyer should contact a licensed building inspector and pest inspector to schedule the inspections within the cooling off period. The inspector will then inspect the property and provide a report outlining any issues or defects found. The buyer can then use this information to decide whether to proceed with the purchase or to terminate the contract. It’s important to note that the cost of the inspections is typically the responsibility of the buyer, and should be factored into the decision-making process.
Note that for auction purchase, there is no cooling off period. Therefore, it is recommended that you conduct the building and pest inspection prior to attending the auction.
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Settlement:
During settlement, the buyer will transfer the remaining balance of the purchase price to the seller, or their representative. The seller will transfer the ownership of the property to the buyer by signing over the title deeds. The buyer will pay any outstanding taxes and fees associated with the property, such as stamp duty and land transfer fees.
The keys to the property will be handed over to the buyer from the seller or their representative. Once all of these steps have been completed, the property officially becomes the legal possession of the buyer, and the sale is considered to be complete. It’s important to note that this process is usually handled by your conveyancer who will assist you with all the legal paperwork and ensure that terms of sale are met.
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Move in:
Once the settlement is completed, you can move into your new home.
It is important to work with a good real estate agent, conveyancer to help you navigate through the process for buying a house NSW.
