“Don’t wait to buy land, buy land and wait.” – Will Rogers
Summer is the perfect season to explore new property listings, especially with sellers eager to close deals by year’s end. And with recent interest rate cuts, the property market is poised for growth. Lower bond repayments can stimulate economic activity, increase property demand, and potentially raise prices. If you’re considering buying a home or investment property, now may be the time to act before prices climb.
As with any major investment, preparation is key. Here’s a comprehensive property buyer’s checklist to ensure a smooth and successful purchase.
Property Buyer’s Checklist
1. Location, Location, Location
- Proximity to Work and Schools: Is it close enough for daily commutes and schooling?
- Local Amenities: Check for nearby shopping centres, medical facilities, and leisure spots.
- Safety and Security: Review local crime statistics to ensure the neighbourhood is safe.
- Growth Potential: Research historical property values and planned developments to gauge future resale potential.
2. Budgeting Beyond the Purchase Price
- Transfer Costs: Factor in transfer duty, conveyancing fees, and other legal expenses.
- Bond Registration Fees: Required if you’re taking out a home loan.
- Rates and Levies: Investigate ongoing property rates and levies if in an estate or complex.
- Maintenance Costs: Set aside at least 1% of the property’s value annually for upkeep. Plan these costs carefully to avoid cash flow issues.
3. Guard Against Online Fraud
Always verify bank details by calling the property agent or attorney before transferring any funds to avoid phishing and fraud risks.
4. Property Inspection Essentials
A thorough inspection can prevent costly repairs. Look for:
- Structural Issues: Cracks or signs of structural weakness.
- Dampness: Check for mould and damp spots, especially in high-moisture areas.
- Electrical and Plumbing: Ensure wiring and plumbing are safe and functional.
Consider a professional property inspection for peace of mind. Review the mandatory disclosure form for known defects, building plan issues, and ensure compliance certificates (electrical, beetle, gas, etc.) are in place.
5. Know Who’s Buying
Will the buyer be you, a spouse, a partner, a trust, or another entity? Choose carefully based on tax and legal implications.
6. Buying in a Complex
- Rules and Regulations: Review any restrictions on renovations, noise, or short-term rentals.
- Financial Health: Check for special levies and assess the complex’s financial stability.
7. Avoid Hidden Surprises
Verify that there are no title deed restrictions, servitudes, undisclosed tenants, or zoning conflicts. If you plan to extend or build, ensure that zoning and title deeds permit such modifications.
8. Understanding Offer Terms
When ready to make an offer, review these key terms:
- Suspensive Conditions: Conditions like securing a home loan must be met for the sale to proceed.
- Occupational Rent: If the seller remains post-sale or if you take possession early, rent may be due.
- Deposit Requirements: Confirm the deposit amount and payment timeline.
9. Seek Professional Assistance
Buying property is one of life’s biggest investments. Rely on experienced professionals, from real estate agents to attorneys, to guide you through the complexities of the process.
Conclusion: Make Your Property Purchase a Success
Buying a property requires careful planning and due diligence. Use this checklist as a guide to avoid common pitfalls and ensure a rewarding investment. For specific advice and assistance, contact our property law experts. We’re here to help you make informed decisions and enjoy a stress-free buying experience.
