Buying Real Estate Property in NSW
Situated on the eastern coast of Australia, New South Wales offers endless beaches, highlands and ski fields, vibrant cities, and many breathtaking natural treasures. Buying property in Sydney is the dream of every Australian.
Neighboring locations of Sydney like Central Coast, Southern Highlands, Wollongong, Shoalhaven, and the Blue Mountains are also drawing attention to potential buyers of affordable property and a largely virus-free, congestion-free lifestyle.
However, buying a property for first home buyers in Sydney is a long and complex process. Before looking at the process of purchasing a property, let’s understand the different methods of buying a home in NSW.
Ways of buying a property in NSW
Private Treaty
It is the standard residential property purchase method, including negotiating property price between the seller and the home buyer through a real estate agent.
Buying at Auction
An auction is a public property sale conducted by a licensed auctioneer and is governed by strict rules. The bid starts with the reserve price, i.e., the minimum sale price, and the highest bidder gets the ownership of the property by signing the contract right away.
Steps to buying a property
Budget planning
Buying property in Sydney is a big investment decision and requires a lot of pre-budget planning. Costs like conveyancing and legal fees, title searches and registration fees, building pest inspections, stamp duty, and any other government fees need to be considered.
Thus, it is important to have some savings before buying property in Sydney for deposits. This helps to increase your borrowing capacity.
Note: Higher deposits mean higher chances of getting a loan at low-interest rates.
Searching and inspecting the property
Many aspects are considered while finding a property, like the type of home and property value. But above all, it is crucial to do a property inspection. Getting an inspection report from a trained professional helps to know about property conditions like structural problems, pest infestations, or any other defects that are not easily visible to the everyday person.
Submitting an offer
After deciding on a property purchase, the next step is to place an offer on the property and enter into a sale contract.
Note: The sale contract contains all the terms and conditions of the transaction in which sellers disclose all the information about the property with relevant documents and certificates such as the zoning certificate, property certificate, plan for the land, and sewerage diagram.
The sale contract needs to be passed through a conveyancer/solicitor to review and ensure no contradictory terms are included. The sellers may ask for an upfront deposit when making an offer. However, the deal may not be finalised till the offer is accepted, and the deposit may be returned to buyers.
Organise legalities
Soon when the offer is accepted, contract of sale is exchanged and signed to complete the process of property purchase.
A conveyancer or solicitor that assists all property purchases can help first-time home buyers in Sydney in a contract settlement. A conveyancer or a solicitor performs the following tasks-
- Review and assessment of the sales contract
- Exchange of sale contract with the seller’s legal representative
- Arrange payments such as deposit, stamp duties, and other fees related to property purchase
- Preparation of the mortgage agreement
- Review any payments owing on the property
- Arrangement for change of title
- Representing home buyers during settlement
Contract negotiation and deposit
The final stage of buying a property is the contract negotiation and deposit payment. The conveyancer/solicitor engaged in the settlement process helps act on behalf of the buyer during the negotiations.
At the time of settlement, buyers and sellers must sign and exchange the contracts. At the same time, homebuyers pay a deposit on the property, which amounts to around 10% of the property value.
A 5-day cooling-off period is provided while buying property in NSW. Note: During this period, purchasers can withdraw from the contract by giving written notice, but the pay of around 0.25% of the property value is given to the seller.
Conclusion
The best real estate consulting firm guides the first home buyers in Sydney in searching for and later purchasing a property. Buying real estate is a big investment that requires one to be always alert.
If you are ready to enter the property market of NSW, ease your worries about the property purchase with the professional advisors of Quarter Acre. Connect with real estate experts now and get your dream home.
