Buying a Home
OK, so you’ve decided that you want to buy a home to live in. What next? For starters, you have to do your research as there’s a lot that you need to know (we couldn’t possibly include 
everything here!) - check out the websites and read a book or two mentioned in Property 101.
Then, if you’re ready (or just curious to see what’s out there), try searching for properties at Realestate.com.au, Domain, Property.com.au, Homehound, Buy My Place or the Real Estate Institute of Australia. That’s the fun bit!
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So, what are some of the things you’ll need to think about and where can you get up-to-date information?
The First Home Owner Grant
The First Home Owner Grant is a national scheme funded by the States and Territories.
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Australian Government – First Home Owner Grant
To see if you’re eligible, find out how much you might collect and to obtain more information about the scheme go to the Australian Government website, select the State or Territory in which you plan to buy and click on the ‘More Information’ button. Bingo!
The First Home Saver Account
The First Home Saver Account is an Australian Government initiative – in short, the Government will make capped contributions to a special home savings account (that you set up) based on how much you contribute yourself. There are other benefits too, like paying less tax on your earnings. Conditions apply.
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Moneysmart – First home saver account
For full details about the scheme – try the calculator to work out how to reach your savings goal and to compare accounts.
Stamp duty
Australian State and Territory Governments impose stamp duty (a type of tax) on transfers of property – how much you’ll pay depends on the cost of the property and the rates set by that particular State or Territory Government. Unfortunately it can be pretty hefty – try the calculator below to give you an idea of what you’re up for.
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Realestate.com.au Home Loans – stamp duty calculator
Also, check out the websites below for more details and to see if you might be eligible for any exemptions. As stamp duty is a State/Territory tax any exemptions or concessions offered will vary depending on where you buy.
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ACT Revenue Office – ACT Duties
NSW Government, Office of State Revenue – Stamp Duty
NT Government, Territory Revenue Office – Stamp Duty
QLD Government, Office of State Revenue – Duties
State Revenue Office Victoria – Duties Act
TAS Government, Dept. of Treasury and Finance – Property Transfer Duty
WA Government, Office of State Revenue – Stamp Duty
Mortgages
You’re going to need to do a bit of research when it comes to finding the right mortgage for you. It can be pretty confusing making sense of all of the different types of mortgages on the market but luckily there are great websites that can offer you some help.
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Money AU lists it’s top picks for the month…
MoneyManager – compare home loans
MoneyManager compares all types of home loans plus it has a Smart Guide to Home Loans that has information on deposits and working out how much you can afford.
Powered by Canstar Cannex (a specialist research service used by financial institutions, government, media and finance professionals) this website has a great section that allows you to search, compare and apply for over 2,000 mortgages based on lowest cost, star ratings, lender or special types of loans. It’s got lots of other great info too…
Building and pest inspection
Seriously think about getting a building and pest inspection done before you buy any property. If you do, you’ll receive a written report that rates the current condition of the property, any problems and the likely costs of dealing with those problems.
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Archicentre has a team of architects who can inspect the property that you’re thinking about buying – you’ll find all the details and sample reports on the Archicentre website. It also has lots of helpful fact sheets about buying property that you can download.
Independent valuation
You might also want to think about getting an independent valuation before purchase – that way you’ll get an unbiased opinion as to what the property is really worth so you can be assured that you’re not paying too much.
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Herron Todd White is an independent property advisory group that can provide you with a valuation after inspecting the property and analysing the local market – the report includes comments on any issues affecting the current market value of the property.
Insurance
Make sure that you have your property insured (house and contents insurance) from the moment you take possession. See Insurance for details.
Find a solicitor
You’ll need to use the services of a solicitor when you’re buying a property. Search for a qualified solicitor via the Law Institute or Law Society in your state:
Law Society of New South Wales
Law Society Northern Territory
Law Society of South Australia
Law Society of Western Australia
Find a financial adviser
Check out the Australian Securities and Investments Commission’s website FIDO – it has loads of great information about obtaining personal financial advice and finding a qualified financial adviser. Experts often suggest you find an adviser who charges by the hour instead of receiving a commission.
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>> Next in Property – Buying an Investment Property
<< Previously in Property – Property 101
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4 Comments
Before I put my offer into the real estate agent I paid Archicentre to inspect my house for me and they came back with a really detailed report (right down to mentioning a piece of broken lino on the kitchen floor!). So it made me feel really confident buying the house. I knew there were a few things that would need fixing but they also gave me an idea about how much they’d cost to fix.
[...] Think outside the box. If you can’t afford your dream property in your dream suburb, think about all your other options. Are there any other suburbs you could see yourself living in the short term? Could you downsize? Could you save more by waiting another year to buy? Or would you consider buying an investment property somewhere, rather than a place to live in yourself? [...]
Excellent read, I just passed this onto a colleague who was doing a little research on this topic.
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I never thought of getting an independent valuation- great idea. Might save me money & heart ache later on. Archicentre is great too!