Tips for Buyers

Things to consider when buying a property

Buying a home is an exciting time, but the process may feel overwhelming – particularly if you’re buying your first property.


A number of factors need to go into your decision and you’ll want to consider them all before you make your final decision.


Practical matters

The old saying ‘location, location, location’ certainly rings true, especially when considering your new home. Where your prospective new house or apartment is located is not something that you will be able to control or change once you have made your purchase.


This means you’ll need to consider a number of practicalities. For example, can you park your car onsite? How close is the property to public transportation links? Are there convenient shops, cafes and supermarkets within walking distance?


Property options

Once you have determined the location where you would like to live, you’ll need to spend some time thinking about the kind of property that suits you.


It is important to take both your current and medium-term situations into account in this situation – for example, a young couple may want to plan ahead and purchase a bigger home if they are thinking about expanding their family.  If this is the case, factors like local schools will also become an important consideration.


Alternatively, if you are purchasing an investment property you should do your research accordingly.


Of course, you’ll want to consider your lifestyle preferences as well. City lovers who work long hours may prefer a modern apartment close to their workplace, while families and pet owners may prefer to focus their search on leafy suburbs where homes are known for their grassy gardens.



Money matters

Once you’ve found the perfect suburb and you know the type of property you want, it is time to turn your thoughts to finance.


It’s essential that you find a property that suits your personal lifestyle, is located in a convenient area based on your work needs and leisure preferences, and – most importantly – that you can afford.


It is wise to begin your search by researching comparative sales in the area. Once you have a good idea of the average house price in your suburb of choice, you’ll need to plan a realistic budget.




What factors determine the purchase price of the property you are buying?

While a number of factors come into play, in the end a property’s worth is judged by only one figure – how much is somebody prepared to pay for it at the time?


The most significant considerations for pricing a property are recent sales and current competition.


The former is a review of what other properties of this type have sold for, while the latter takes into account similar homes that are presently on the market.


At CRASTO we can provide you with information and advice regarding both of these aspects of the house-hunting process through competitive market analysis.


It is also important to take note of the prevailing market conditions, as these can generate a genuine insight into short-term trends and help prospective homebuyers gain a feel for what they will need to pay to achieve their goals.


If high buyer demand exists at a time when very little property is actually available, prices are likely to increase.


‘Seller motivation’ – the reason the current owner is attempting to offload the property – might also play a major role in determining the final cost. If a quick sale is required, vendors have little choice but to accept the best offer at the time without the luxury of waiting for a better deal.



Why should I carry out a Building and Pest inspection on the property I am buying?

No matter how excited you are about purchasing your new house or unit, it is prudent to undertake a building and pest inspection to make you aware of any major defects and pest concerns eg: white ant, termites.


On settlement day, your solicitor or conveyancer may request that you have a pre-settlement inspection before settlement takes place. This is to ensure that the property is in the same condition as when you last inspected it and that all the inclusions are as per the contract you signed



How many homes should I inspect when looking for a property?

We recommend looking at enough properties to gain a comprehensive understanding of the marketplace.


This will provide you with the required knowledge to work out if the property you are interested in buying represents value for money, while also helping you to determine which location appeals to you the most.


It is important to feel confident about your eventual purchase, so viewing properties online is a good way to research the market efficiently.


Alternatively, at CRASTO’s we can give you comprehensive market analysis on the property, with details of similar properties currently for sale or in the same area.



What is conveyancing and why do I need it?

Conveyancing is a term that refers to the transfer of ownership of a property -most buyers enlist the services of either a conveyancer or solicitor to handle this process on their behalf.


While you are able to act on your own when making a property purchase, the process of documentation and settling can be complicated – and may seem daunting. Bringing in support from an expert who is familiar with legal documents and legislation can make the process easier.



What does a conveyancer do?

Once you have appointed your conveyancer, they will be responsible for a number of tasks as they help you through the settlement process.


These jobs include acting as a liaison between you and your lender’s solicitor, checking your contract of sale, performing title searches and acting as your legal representative for the transaction.


Your conveyancer will also check on a number of important things for you, including whether there are any outstanding rates on the property – such as council taxes or water payments. In some cases, your conveyancer will also check over your loan documents for you.



How much does a conveyancer charge?

The cost of hiring a conveyancer can differ from city to city – and even from transaction to transaction, depending on the amount of time and work involved.

It is important to enquire about fees before you agree to appoint anyone.


How do I choose a conveyancer?

There are a number of points to consider when choosing a conveyancer.


These include assessing whether they are available to provide the level of service you are looking for and if you can clearly and effectively communicate with them.


You may be looking for a conveyancer who can explain the process to you – particularly if you are a first-time buyer – so it is important to ensure they have time to take you through every step of the process.


You may also wish to consider location – you may want your conveyancer to be locally-based or easily accessible

How much deposit do I need to buy a property?

While a good general rule for anyone planning to live in the property they buy is that they’ll need a deposit of ten per cent of the purchase price, this can vary depending on a number of factors.


These include the type of home loan you are seeking, as well as the lender you choose. Anyone purchasing a property for an investment is generally required to provide a deposit worth ten per cent of the purchase price.


Your deposit may come in the form of savings – usually from at least the past three months – as well as contributions from other avenues, which can include family assistance, gifts or bonuses.

What happens to the deposit paid to the agent?

When a contract is signed, a ten per cent deposit is usually required. In some cases, an agent may ask for a smaller amount to be paid when an offer is submitted.


When you pay your deposit to an agent, it will be paid into a trust account they operate. No interest is payable from this type of account.

Develop a relationship with a CRASTO team member specialising in your preferred area. The agent will be able to offer additional advice and also alert you to new listings before they reach the media.

Call now to set up an appointment.