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The following is a guide to steps
involved in buying a property.
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1. Assess your borrowing and
financial capacity ...
It is vital that you organise your finances before making an
offer or bidding at an auction.
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Make arrangements to cover the deposit should your offer or
bid be successful, and arrange to have the appropriate
mortgage funds available for settlement.
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Confirm with your financial institution or bank the amount
they are willing to lend you and calculate this with your
capacity to repay, without negatively impacting on your
lifestyle and any other financial commitments.
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Assess your financial capacity.
Don’t forget that (variable) home loan interest rates can
move up and down, so you need to have a bit of leeway to cope
if this happens.
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2. Do some homework ...
Decide what you want in terms of:
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Style of the property,
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Size of the property,
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Location in relation to proximity to schools, access to public
transport and so on, and
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Price range.
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Decide on the kind of property you want, taking into account your
financial ability.
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3. Watch out for suitable
property ...
Register your name and requirements with estate agents and ask
them to let you know when suitable properties come up.
Regularly examine property agent's offices, listing magazines,
local and daily newspapers and property websites.
It is a good idea to attend some auctions and check the
published results of auctions in your area.
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Look out for
suitable properties through real estate agents or in the papers,
websites, etc.
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4. Approach the selling real
estate agent and inspect property ...
Inspections should be made at the advertised times or by
appointment with the real estate agent.
Once you have found a property that suits you, it is wise to
check it out during the week as well as on the weekend, as a
peaceful environment on one day might be quite different at
other times.
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Take a look at properties which suit your requirements.
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5. Make a decision ...
Decide on the suitability of the property and the price to be
offered.
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Decide on
suitability and price.
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6. Put in an offer ...
This is usually done by submitting a duly completed Booking
From and a payment of a sum of Booking Fee to the vendor.
A Booking Form must contain details of the property, the
price, deposit and settlement terms.
The Booking Fee is returned to the purchaser once the first
deposit payment is made by the purchaser, assuming the offer
is accepted by the vendor.
Should the vendor decide not to accept the offer, the Booking
Fee is returned in full to the buyer.
However, should the purchaser change his mind and decide not
to proceed with the purchase after the vendor has accepted the
offer, but prior to the signing of the Sales and Purchase
Agreement, the Booking Fee is forfeited, unless there is a
cooling-off period stipulated in the Booking From.
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Put in an offer by submitting Booking Form and Fee to the
vendor.
Some important points to take note of when making an offer to purchase a property.
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7. On acceptance of offer, sign the Sale and Purchase
Agreement ...
How you decide to handle the paperwork associated with the
property purchase is your own decision. Options include using
a solicitor, using a qualified conveyancing agent, or doing it
yourself. It is strongly recommended that inexperienced buyers
seek professional advice on the conveyancing process.
The Sale and Purchase Agreement includes details of the terms
and conditions of the sale, such as the deposit required, the
settlement date and the chattels included with the property
(such as carpets, curtains etc).
(See Sale & Purchase Agreement for
details.)
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To be safe, seek professional advice on the terms and conditions
of the Sale and Purchase Agreement.
Some important points to take note of when purchasing a property in Australia.
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8. Submit Sale and Purchase
Agreement ...
Agent to submit the Sale and Purchase Agreement to the seller.
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Submit duly signed S&P.
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9. Pay the deposit ...
Pay a deposit to the selling agent and receive a trust account
receipt.
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Make payment of deposit.
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