A Comprehensive Guide to Purchasing your First Home
Taking your first step
Purchasing your first home is an exciting milestone, but it can also be overwhelming. The “First Home Buyers Playbook” by ALI Group, our Personal Risk Insurance partner, is here to guide you through the process, ensuring you make informed decisions every step of the way. Here’s a simplified breakdown of what you need to know.
Finance Advisors
Helps you find suitable loans, complete applications, and navigate the buying process. With many years of experience, they are your trusted advisor on your finance journey.
Realestate Agent
Acts as a liaison between you and the seller, aiming to secure the best deal.
Conveyancer
Manages settlement processes, including title transfers and protecting your rights as a buyer.
1. Pre-Purchase
Start by preparing your finances and gathering savings.
2. Pre-Approval
Work with a mortgage broker to lodge applications and understand your borrowing capacity.
3. Purchase
Have the contract reviewed before signing and finalize your loan application. Guidelines for Letter of Offer.
4. Valuation
The lender assesses the property’s value to ensure it provides adequate security for the loan.
5. Formal Approval
The lender confirms the loan amount.
6. Insurances
Obtain necessary home insurance and consider contents and personal risk insurances.
7. Settlement
Funds are transferred, and ownership is officially passed to you.
VIC
For more information on the Victoria's First Home Owner's Grant, visit the State Revenue Office:<br /> https://www.sro.vic.gov.au/
QLD
For more information on the Queensland's First Home Owner's Grant, visit the Queensland Revenue Office:<br /> https://qro.qld.gov.au/property-concessions-grants/first-home-grant/
What is the standard deposit amount when making an offer on a property?
The standard deposit is usually a maximum of 10% of the purchase price, paid via bank transfer. However, this amount can be negotiated. At the time of signing the contracts, even with conditions, a small deposit is typically required as a token of your intention to purchase. This is refundable if financing falls through. For unconditional offers, the full deposit is generally payable upon signing.
What are typical settlement date timeframes and can they be adjusted?
Typical settlement dates are 30, 60, or 90 days, but any date is possible. For longer settlements (beyond 90 days), consult your legal representative as additional terms may apply. You can add “or earlier by mutual agreement” to the settlement date, allowing for flexibility if both buyer and seller agree to an earlier settlement.
What does it mean to make an unconditional offer on a property?
An unconditional offer means you are committing to the purchase without any conditions. Once signed, you must proceed with the purchase or risk losing your deposit and facing legal action for vendor losses. It is crucial to consult with your advisor before making an unconditional offer.
Can I include conditions in my offer and what are some common examples?
Yes, you can add as many or as few conditions as you wish. Common conditions include:
– Subject to finance: Allows a set timeframe to secure financing.
– Subject to Building + Pest Inspection: Allows for a professional inspection of the property.
– Subject to satisfactory Perusal of the Section 32 + Contracts: Provides time for your legal representative to review the contract and associated documents.
What information should I provide about myself when making an offer?
You should provide your full legal name, including any middle names and hyphens, as per your identification documents. If the exact purchaser is not yet determined, you can use one name followed by “and/or nominee”, allowing for changes up to 4 weeks before settlement.
What is the role of a legal representative in the property buying process?
Your legal representative, either a conveyancer or solicitor, will review the contract of sale and Section 32, guide you through the legal processes, and ensure your interests are protected. It is advisable to have your legal representative review the contracts before making an offer, which may allow you to remove the condition related to contract perusal.
Why is it important to include an offer expiry date?
An expiry date creates a timeframe for the vendor to respond to your offer, preventing delays and allowing you to move on to other opportunities if necessary.
Where can I get further advice and support during the property buying process?
This guide offers general advice only. Seek independent legal and financial advice before making an offer. Consulting with a qualified financial advisor and legal representative is highly recommended for personalised guidance and a smooth property buying journey.
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