How the home buying process works

PHOTO: First home buyer. FILE

One of the most significant and maybe overwhelming decisions of your life is choosing to purchase real estate because there are so many important elements to take into consideration. Make sure to do your research before starting the home buying process, whether you’re a first-time buyer or trying to add a smart investment to your portfolio. Australia is a popular choice for people looking for a fantastic place to invest in real estate. Australian expats and foreign investors seeking solid returns and stability have made Australian real estate investments attractive. Keep reading to learn how the Australian home buying process works and how to make your goal of owning a home a reality if you’re an international buyer looking to buy property in Australia.

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Evaluate your finances

It’s a good idea to start by creating a budget and setting aside money for a deposit. To avoid paying Lenders Mortgage Insurance (LMI), many property purchasers in Australia try to save at least 20% of the purchase price. Remember that there may be a few more expenses to budget for, such as valuations, applications, and settlement. There are many variables that affect how much you can borrow from the bank. A mortgage is a significant financial commitment, so it’s wise to be open and honest with your accountant about your situation to determine what you can afford. When you begin looking for a property, being aware of this will be helpful.

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Prepare all the expenses

When purchasing a property, it’s important to set aside money for a number of additional expenses. Firstly, you need to keep in mind the cost of the mortgage application, which varies by lender and ranges from 200 to 600 dollars. A property appraisal, which could cost around 400 to 500 dollars, as well as stamp or transfer duty, which varies depending on your location and circumstances. Also, you must factor in the costs of insurance, such as property title insurance, which offers protection against a variety of property ownership risks, including the building of structures on your property without your knowledge or consent and identity theft and fraud, to name a few. This also helps with costs that can add up very quickly and become very expensive. You can request a title insurance quotation right now to get an idea of pricing.

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Organize your team of experts

To handle the legal work on your behalf, you would need a conveyancer or a solicitor. In Western Australia (WA), conveyancers are referred to as settlement agents. Their duties include managing the ownership transfer and conducting searches on the property. Although an accountant is not necessary when buying foreign real estate, having one on hand can be quite helpful for learning about the financial arrangements involved. If you want to set up an Australian company or manage your property, you must include an accountant. A buyer’s agent is very helpful because many foreign investors aren’t able to go to Australia to examine properties. They can represent you in negotiations and help you select the ideal property.

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Locate a property

After you’ve done all the necessary arrangements, now is the ideal moment to travel to Australia and start your property search. Using a buyer’s agent is the alternate choice. Using similar sales to appraise the property may be a good idea if you’ve chosen against using a buyer’s agent. To obtain a more accurate estimate of your home’s worth, make sure to contrast them with comparable-sized properties that have closed sales outside of the development.

Pay the deposit and conclude the contract exchange

You can exchange contracts with the real estate agent following the loan’s official approval and your conveyancer or solicitor’s full agreement to proceed. There isn’t a predetermined minimum deposit amount, but one is usually requested. After the contracts are exchanged, the process is then about to be completed.

Settling into your new home

It won’t be long before you can move into your house. You’ll now need to pack your possessions, organize your utility accounts, hire a removalist, and perhaps even hire a cleaner. Don’t forget to change the address on all of your accounts and set up mail forwarding.

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Although the process of purchasing a home in Australia can be quite complicated, hopefully, this article has helped you understand it better and has aided you in making the perfect choice.