Tips for buying your first home
Buying your first home is one of the most exciting and biggest moments you will experience. Here we provide some helpful tips for you to start your First Home Buying journey.
Speak to your Banker or Broker to discuss your pre-approval
It may be tempting to start looking for your dream home as a first step however we do recommend that you first spend time finding a banker or broker that you feel comfortable with. Once you have had those initial discussions with your banker or broker you will have a fair idea of what your budget is and start the process of your pre-approval so that you can be confident when attending inspections around what your lending capacity might be.
It’s important to have your Contract and Section 32, Vendors Statement reviewed before you sign
When it comes time to make an offer, please get in touch with a Property Lawyer or Conveyancer to arrange a review of the Contract of Sale and Section 32, Vendors Statement. Most of the time we find that Real Estate Agents will require you to make your offer by way of signing a Contract of Sale which means that once your offer is accepted and signed by the vendor, the Contract of Sale is legally binding. They will review these documents to ensure all information required has been provided and look for any red flags. For example, they will look for items such building works that have not been disclosed with the appropriate permits or insurance, covenants which may prevent or restrict you from completing future works to your property or easement that may have been built over without the required consent. It is also a good idea to ask your Property Lawyer or Conveyancer what rights you have around the cooling off period. You may have waived your rights under certain circumstances particularly if the property was sold under Auction conditions.
It’s a good idea to complete your building, pest and any other inspections before you sign the Contract of Sale
Where possible have your building, pest and other inspections completed before you enter into the Contract of Sale. For example, the inspector may find numerous minor defects when completing the inspection. However, as part of the Building and Pest condition a purchaser has limited or no rights around any compensation or rescinding the Contract on this basis. Ensure the inspections are completed by qualified professionals and that way you know exactly what you are buying, defects and all, and can make an informed decision on whether the property is right for you.
Be mindful that you are purchasing the property in its current condition
When you sign a Contract of Sale to purchase a property it is important to remember that you are purchasing the property in the condition it was sold, on the date of the sale, except for fair wear and tear. When you are inspecting the property ensure that you take time to check the appliances, heaters and air conditioners are in working order. If you have any concerns relating to those they can be flagged and rectified prior to entering into a Contract of Sale. There is a common misconception that your purchase property will be cleaned and all belongings will be taken at settlement. Whilst this would be lovely, unfortunately there is no legal obligation for the property to be cleaned so you may want to allow yourself more time after settlement to make those arrangement is required.
Ask questions
We often have first home buyers apologise for asking too many, or ‘silly’ questions. The reality is if you are unsure of the answer to any questions you should ask, it’s your lawyer or conveyancer’s job to guide you through the process and they certainly don’t expect you to know how the conveyancing process works, after all, buying a house is not something you do every day.
Check if you are eligible for stamp duty concessions
First Home Buyers are entitled to Stamp Duty exemptions or concessions in certain circumstances only. Stamp Duty concessions and exemptions change frequently so please ensure you check the State Revenue Office website at the following link www.sro.vic.gov.au to check if you are eligible for any exemption or concession or chat to your Conveyancer and/or Property Lawyer regarding what concessions or exemptions you may be entitled to.
Once settlement is finalised – celebrate – you did IT!!