If you are thinking about entering the property market for the first time, there is a lot to learn about the home buying process in general, so it is important to be aware of the various services and experts out there to help you. Below are a few key things (and services) to know about before buying a house in Australia.
Buyer’s advocates
Buyer’s advocates (sometimes referred to as buyer’s agents) are licensed professionals that work on behalf of clients to take the time, effort, and emotion out of the home buying process. They look for suitable properties based on your search criteria and budget, view the properties for you, and then provide informed appraisals of any properties that make the shortlist. Buyer’s advocates can also bid on your behalf at auctions and negotiate the sale of the property.
Is a buyer’s advocate worth it?
If you are unable to dedicate as much time to the property search as you would like, or if you would prefer to have some extra assistance with finding your dream home, engaging the services of a buyer’s advocate might be worth considering.
Building Inspections
Another expert to consider engaging prior to purchasing a home is a qualified building inspector. You can hire a building inspector to assess the condition of any home or homes that you are thinking about buying. Building inspectors assess a property’s condition in terms of safety hazards, minor defects, and major defects, and provide a detailed report on their findings. Having these checks completed can help to safeguard prospective buyers against purchasing structurally unstable homes and can save people thousands of dollars in repair work.
Pest Inspections
You may also like to consider employing a qualified and insured pest inspector to inspect any properties of interest for pests. Pest inspectors conduct visual inspections of properties for evidence of termite activity / damage and other infestations.
Are building inspections and pest inspections worth it?
Whilst these services do come at a cost, they may save you a lot of time, money, and heartache in the long run. They are services worth considering, especially if you are interested in purchasing an older home.
Conveyancers
Conveyancers assist home buyers with the legal requirements associated with purchasing property. They are licensed professionals that specialise in transferring real estate from one person to another. Conveyancers are responsible for things like examining the contract of sale for any red flags or unusual clauses, preparing and lodging the legal paperwork involved in the real estate transaction, ensuring that the home buyer meets all the legal obligations involved in their property purchase, and overseeing the process of transferring the property out of the vendor’s name and into the home buyer’s name.
When should you engage a conveyancer?
Conveyancers conduct the bulk of their work throughout the settlement period, however many home buyers engage conveyancers prior to purchasing property. When you find a home that you are interested in buying, you can request the Section 32 from the real estate agent, and then send it to your conveyancer to conduct a pre-purchase review. Conveyancers examine the Section 32 to identify any issues or risks associated with the property, the land, the title, or services, so that you can make an informed decision as to whether you wish to proceed with the purchase or not.
Solicitors
Solicitors are qualified to carry out the same work as conveyancers, but the key difference is that a solicitor generally possesses a broader knowledge of the law and are thought to be better equipped to manage more complex sales. Solicitors are legally trained in other areas of the law in addition to property law and can advise on issues like tax implications and matters beyond those usually involved in a conveyancing transaction.
Is it better to use a solicitor or a conveyancer?
Both conveyancers and solicitors are qualified to assist with property transfers, and in most states in Australia, you can choose to use either (be sure to check the solicitor / conveyancer rules relating to your specific state). So when it comes to choosing between the two, consider whether or not your property transaction is likely to involve complex legal issues or pose major risks, or if you are likely to require legal representation at some stage down the track. If so, a solicitor might be the right choice. If your property transaction seems as though it will be fairly straightforward, then a conveyancer can carry out the work for you and is likely to be the less expensive option.
Title Insurance
Title insurance is another option to consider when purchasing a property. Title insurance is a specialised policy that can protect you from potential legal or property ownership risks that may affect your right to occupy and use your land. It is essentially a risk management tool that covers the cost of rectifying an existing problem, that wasn’t detected in any pre-purchase inspections. Title insurance covers things like:
– the demolition or repair of any unknown or unapproved building works
– fraud, forgery, or identity theft that may affect your legal ownership of the property
– loss caused by errors in property searches and enquiries that were carried out when you purchased your land
– non-compliance with planning and zoning laws
– boundary disputes
– claims by an ex-spouse that didn’t approve the sale
– structures built on your land without your consent
Is title insurance worth it?
Obtaining title insurance is certainly worth considering, because in the event that someone challenges your title after you’ve purchased the property, the insurance covers the legal costs of defending the claim and any costs associated with rectifying the issue at hand. Title insurance can protect you from losing your right to live in your home if a third-party claim arises after you buy the property.
What is a mortgage broker?
And of course, engaging the help of a mortgage broker is also an option for those looking to purchase a home. Mortgage brokers essentially help their clients to choose and secure a home loan. They assess and analyse your finances, determine your borrowing capacity, and then present you with suitable loan options that match your needs and financial situation. Mortgage brokers must act in their clients’ best interests when presenting loan options and have the benefit of comparing loans from a variety of different lenders. Once you decide on a home loan, your mortgage broker will then submit the loan application on your behalf, organise all of the relevant paperwork, and liaise with the lender throughout the process, right up until settlement and beyond. Mortgage brokers take a lot of the time and stress out of the home buying process and are by your side every step of the way.
Our team of MoneyQuest mortgage brokers are experienced, knowledgeable, and professional. They can guide you through the various loan options available to you and will strive to make the purchase of your new property as smooth as possible!
Disclaimer:
This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the article is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).
Please consult your financial advisor, solicitor or accountant before acting on information contained in this publication.
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