Conveyancing

You need to work out a budget so you know how much you can afford to repay every week. Once you know your savings goal, you can work out how long it will take you to reach the amount for the deposit. You may have to calculate your extra costs such as stamp duty, conveyancing fees, inspection fees and rates.

For First Home Buyers in Victoria, the State Revenue Office has a complete list of all concessions and discounts which apply including: 

• First Home Owner Grant (FHOG) for new builds
• Stamp Duty exemption or concession
• Principal Place of Residence (PPR) concession

As you won’t have to pay lender’s mortgage insurance, a deposit of 20% is suitable. 

You may need to attend property auctions or private inspections. This is important as you can get a realistic picture of how much properties are selling for compared to the advertised price of your property. You can decide if private sale is an option in your area or you have to bid at auction.

You need to research and make decisions on:

• Buyer’s agent, mortgage broker or financial adviser
• Which loan to get, with rates and lender fees
• Which solicitor or conveyancer to use
• Which authorized inspectors to use, for example, building inspectors, pest supervisors if you’re purchasing in a termite prone area.

Arrange a pre-approved loan if you plan to buy at auction you cannot make the contract of sale subject to finance without the vendor’s agreement if you buy at auction.

Please get a statement of information from agents. Please ask the agent about any items that appear to be fixtures on the property but could instead be items (personal chattels), which the seller may remove at settlement.

Make sure you get the inspection report before the auction if buying in this manner. Without obtaining agreement from the vendor, you cannot put conditions on the contract of sale at an auction. If you are choosing to purchase via a private sale, see if you can make the purchase subject to a building inspection. Make sure to get a building inspection and pest inspection of the property. 

Gather all the documentation required to apply for a home loan and apply for pre-approval. The documentation should include: proof of identity, payslips or a tax return to demonstrate your capacity of repayment, plus your savings account statements or evidence of a deposit.

Please make sure your deposit is available, so you can pay when required by the agent.

You need to develop a strategy for bidding at auction or for making an offer for a private sale. You need to understand your cooling-off rights in a private sale.

Even though the seller’s insurance may cover the property up to the date of settlement, the buyer is recommended to take out building and contents insurance effective from the date buyer sign the contract. This is to defend the lender’s interest in the property, as well as the buyer’

Naturally, you will want to present your property in the best possible light. First impressions always count, so mow the lawn, place a few plants in the garden, keep the house clean and tidy, and add a coat of paint to improve the presentation. 

You will need to be aware of material fact. This fact is important to a potential purchaser in deciding whether or not to buy land or may influence a purchaser to buy land at a certain price.

A fact can be material if:

• An average buyer would consider it essential to their choice whether or not to buy the property or
• A fact is known to be important to a specific purchaser.

When selling land, there is a maximum penalty for knowingly concealing a material fact including:

• A fine of over $19,000 (120 penalty units) or
• Up to 12 months imprisonment.

The material fact extends to all land, including:

• Residential
• Commercial
• Rural land

If you plan to buy a property you may need to arrange a loan to cover the cost before selling your current property. 

If your new property is before settlement of your home and you are planning to use the money from the sale of your home to pay for the new property, you may need a bridging loan to cover the financial gap.

You need to try negotiating the settlement dates to ensure you have the money from your sold property to pay for your new property, rather than get bridging finance. Bridging finance can prove to be more expensive than a regular home loan for a property. 

If you are selling a property, building a property yourself or manage a contractor to build on your behalf, there are specific legal requirements you must meet.  

A real estate agent may give you an estimated selling price for your property. You cannot misrepresent the price they believe the property may sell.

The agent should seek your written approval:

• The price or range at which your home is to be advertised
• That you will consider offers at that price or for all prices within that range

In a private sale:

• The Property is promoted, and potential buyers are encouraged to make offers.
   
• The buyer and you, both agreed on a sale price through negotiation, usually with assistance from an estate agent.
• The contract can be conditional. This means that with your agreement, the buyer can make the sale subject to conditions such as getting a loan, obtaining a satisfactory building inspection report, or other conditions.

A property auction is the public sale of a property which is governed by strict rules.:

• It is advertised stating a specific place, time, and date. In this case, prospective buyers place a bid and the property is offered to the highest bidder. 
• It is generally conducted by an agent who acts as an auctioneer.