January 26, 2016

So you are going to buy property – what do you need to know?

This is an exciting time – you’re about to buy property. It’s probably one of the biggest financial decisions that you will make – so tread carefully, take your time and don’t rush into things.

So what do you need to know?

Here is a snapshot of some things you should consider before signing a Contract to buy property.

Do I need pre-approval of finance?

Not necessarily – but if you need to finance the deal then you really need to know your price limit. Having a good idea of what you can borrow means you won’t waste your time [and that of others] chasing a deal that you can’t afford.

Remember that a pre-approval of finance is not a finance approval. A pre-approval is simply an indication from your bank as to what they will lend you. Any loan will be based on a valuation of the property first.

If you need finance to complete the deal, always make sure that the contract is said to be subject to finance.

Should I have a building and pest inspection before I buy property?

Put simply – YES!

Buying property will probably be one of your biggest financial decisions – don’t quibble over a report fee of $400-500. In the overall context of the purchase, this fee will represent only a very small cost.

Building and Pest Inspectors are experienced professionals who can save you piles of dough by being thorough with their inspections and report. Discovering issues with the building after settlement is not what you want – you want a building which is hassle free. That is why you need to have a building inspection; you need to go into the deal with your eyes open, not on a wing and a prayer.

What is included in the price?

Always make sure that you know with certainty what you are buying and what is included in the sale price.

Don’t just rely on someone’s word on what is included – make sure that the items to remain are clearly set out in the contract. This will save you disappointment and avoid any unpleasantness during the course of the sale.

Is the pool equipment included in the sale? Is the pressure pump on the dam included in the sale? Is the dishwasher included in the sale? These are just some of the issues which can arise. Generally people are honest and will leave items which are obviously to remain with the property – but you need to be sure.

You don’t want to spoil the experience of buying property when any potential unpleasantness could so easily be avoided.

What’s next?

Our next e-newsletter will continue this series of helpful hints to buy property so be sure to read our next newsletter.