Buying

BUYERS GUIDE

Buying a property can seem like a huge task. But it doesn’t have to be! Being informed is the key to making the right decision, knowing what you want and knowing what you really need is just as important as setting a budget.

What home is right for you?

Whether you are buying a home to live in or as an investment, you need to make a list of what your priorities are. Make the list of all of your must have requirements. It is easy to become attached to a house that looks good, it may not have what you want so this checklist of things you may have is essential.

Location

Perhaps the most important influence on the potential capital growth of all real estate is it’s location. If you are buying an investment property this should be on top of the list. Do you want to be close shops, family, parks, schools, public transport? Would you prefer to be on a main road or would you prefer a side street or court? The location of any property has a huge impact on the value of a property. Compromise is something you will have to do but be sure your priorities are met, and stick to your plan. Even a wonderful property with all the mod cons will not make up for the fact that is 5 kilometres from the beach or shops, if that is a priority to you. The suburb you choose will most likely be dictated by your budget, once you have made your decision, draw a boundary around the area you prefer and only look at properties in that area. This will save you a lot of valuable time house hunting.

Types of property

We all have different needs. Young families need lots of space and are usually looking for homes with land in suburban areas. Empty-nesters, couples & singles may be interested in a townhouse or apartment living that have limited maintenance issues and offer closer proximity to shops or beaches. It is important to decide on which style of property suits your budget and needs. Investors should do some serious research to see which types of properties have preformed best showing strong long-term gains. The number of bedrooms, bathrooms and overall condition of a property are all very important factors, as to is the size of the land. If youneed to work from home, a studio or extra bedroom may be necessary.

Orientation

Often forgotten about but a very important factor is the orientation of the property. This will determine how much natural light the property will derive and the amount of  sun any outdoor living area will receive. We all have different tastes, but the most desirable orientation is usually a north-west facing rear garden or living area. This orientation maximises sunlight in the afternoon, bedroom/s at the front of the house, will help keep these areas cooler during the summer months.

Building inspections

There are various pre-purchase building inspection companies to choose form. Reports are prepared by a specialist and include a detailed report on the general condition of the property, they Alert you to any faults the property may have such as dampness, cracking, leaks or sub-floor structure issues. Most reports give you a good idea of the budget required for any necessary repairs or alterations that you may need to do. The staffs at Noble Wilson are happy to provide you with a list of independent contacts for assistance in this area.

Auction or Private Sale

Often the buyer has no decision as to whether their desired property is purchased at Auction or via Private Sale. The seller determines their preferred method of sale and their preferred terms.
Bidding at Auction for the first time can be a daunting thought. Similarly, the hype of an Auction can cause emotions to cloud good judgement. If you don’t feel at ease with the Auction process, consider asking a friend, or qualified buyer’s advocate to bid on your behalf.

The benefits of buying at Auction may include:

• Auctions have a very transparent bidding process, you know what your bidding against and you can gauge the market reaction instantly.
• All of the documentation is signed on the day.

• Be aware there is no cooling of period available to purchasers buying at Auction.

Private Sale involves a process of negotiation. The property will have an advertised price – this is the starting point for all negotiations which usually take place through the Vendor’s agent. Negotiations will continue until both parties agree on price and terms.

The staff at Noble Wilson are always available to thoroughly explain both processes to interested buyers and assist in making your buying experience as smooth and hastle free as possible.

Costs

This checklist highlights the costs most Victorian homebuyers will have to consider:

• Purchase price of home (including 10% deposit on signing of contract with balance payable at settlement)
• Stamp Duty on the transfer of property

• Conveyancing/legal fees/rate adjustments
• Mortgage Application fees (if applicable)
• Adjustments such as council rates, water fees etc
• Insurance

Conveyancing

There is a lot of paperwork associated with buying a property, a solicitor or conveyancer is able to assist you here.

You could do it yourself, but our advice here is it’s an area best left to the professionals, especially if you are a first home buyer.

Conveyancing costs for a straightforward purchase vary, somewhere in the range of $500-$1,000 is not uncommon.

Finance

Consideration should always be given to assessing exactly what loan amount a buyer can comfortably afford. This will obviously dictate your property budget.
The staff at Noble Wilson will be happy to assist you by providing you with a referral to an independent finance broker.

Ultimately, it is your money you are spending, and it is your wants, needs and desires that really matter when buying a property. Do your homework and decided on your requirements, stick to a plan and the daunting process of looking for a home can be fun and very rewarding.

In summary

• Be well informed, do your research first
• Take your time and take a good look around
• Don’t be in a rush until you find the right property then don’t delay in making your offer

Buyer’s tips

Tip 1
Do your research on the area.

Don’t jump in to quickly. Research the area you intend to buy in by reading results of recent sales, attend some auctions and get a good feel for the current market.

Tip 2
Thinking of buying  to renovate?

Looking for a 'renovators delight', checking all council regulations and zoning constraints is a good place to start. You may find the area is covered by an overlay that may restrict certain renovations.

Tip 3
Hidden Costs

Have your bank, broker or lending manager outline all of the associated costs with purchasing a property. This is essential information when calculating your budget.

Tip 4
Legal Advice

Before making an offer on a property or bidding at an Auction, have a solicitor or conveyancer check the Vendor’s Statement (Section 32) for you. Be an informed buyer and avoid making snap decisions prior to the correct research.

Tip 5
Inspecting a Property

If you’re interested in buying a property, conduct as many inspections that you feel are necessary to check that every aspect is right for you.
You could:

• Inspect the property during peak hour – is traffic noise a problem?
• Test both the hot and cold water taps to check water pressure.
• Visit the property at different times of the day to check variations in internal light, and where the sun falls over the garden or pool.
• Consider obtaining a professional building inspection
• Is there enough storage area? Could extra storage area be created?
• Check the heating/cooling and all appliances

Tip 6
Owners Corporation

If you are looking to purchase unit or apartment, you will have to pay a fee to an owners corporation, which is responsible for maintaining the building and 'common areas' such as driveways, stairs, shared gardens or pools. Make yourself aware of the fees and check minutes of recent meetings to establish whether major (i.e. expensive) works are scheduled in the near future.

Tip 7
Choosing a Good Street

Walk the street you are looking to purchase in. Is there any signs of renovation or extension activity in the street? Ask the Agent for a list of recent sale prices in the immediate area.

Purchasing Property

This checklist highlights the costs most Victorian homebuyers will have to consider:

• Purchase price of home (including 10% deposit on signing of contract with balance payable at settlement)
• Mortgage Application fees
• Stamp Duty on the transfer of property
• Adjustments at settlement, such as council rates, South East water fees etc
• Insurance
• Conveyancing/legal fees

FREE BUILDING INSURANCE & FREE CONNECTION SERVICE

1.                  KEYCOVER’S FREE BUILDING INSURANCE COVERNOTE:

All Noble Wilson’s clients purchasing residential property receive a free and immediate, 30 Day Building Insurance Cover Note to the value of 75% of the purchase price of the property provided by KeyCover Pty Ltd. This free and immediate cover alleviates the need to stress about the grey area of the law concerning the responsibility or onus of building insurance when purchasing your new home.

2.                  UTILITY CONNECTION AND DISCONNECTION SERVICE:

All Noble Wilson clients receiving the Free Building Insurance Cover Note will also be offered an obligation free Utility Connection and Disconnection service provided by KeyCover Pty Ltd. This is a very easy way to have all off your services connected ready for you to simply move into your new home hassle free.

3.                  KEYCOVER`S CONVEYANCING SERVICE:

All Noble Wilson clients receiving the Free Building Insurance Cover Note will also be offered from KeyCover Pty Ltd a professional property Transfer Service. KeyCover Pty Ltd can help you engage an independent Legal Firm that has a partnership with a reputable and quality conveyancing firm. This offer from KeyCover is entirely at your discretion.