"There’s a myth that time is money. In fact, time is more precious than money. It’s a nonrenewable resource. Once you’ve spent it, and if you’ve spent it badly, it’s gone forever."
- Neil Fiore: Author

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TIPS ON BUYING A HOME ...

Whether you have spent years saving and preparing to buy a home, or you still aren't sure if it is something you can even dream of, the questions surrounding a first-time home purchase can feel endless and your emotions can range from excitement and pleasure to doubt, frustration and anxiety.

Buying a home can be one of the most significant investments you make. Whether you are choosing a home for yourself and/or your family, or looking to invest, you are most likely committing a large portion of your available capital. The more prepared you are at the outset, the less overwhelming and stressful the buying process will be.

The goal of this website is to provide information to assist you in making an informed decision so your buying experience will be an enjoyable and pleasurable one.

Now is the time to have your finances in place.  Knowing your limit means you will be only looking at properties you can afford. This guarantees you won't be disappointed by becoming attached to a property you can't afford.

Generally you must have a deposit which has been saved of a minimum 5% of the purchase price.   Make sure you allow for all extra legal costs involved. eg. Stamp duty and conveyancing fees, loan costs and mortgage insurance.

For a more accurate and personal assessment, whether you are looking to purchase a home or investment contact your bank or a mortgage broker who will gladly make an appointment after or during business hours in the comfort of you own home.  

This is a terrific free service, so to ask any questions contact one of these mortgage brokers.

Another advantage to using a mortgage broker is that they know the restrictions that some lenders make on different titles and types of properties. In these situations, a broker can advise you from the outset which lenders will not be suitable to you, saving both time and effort.

SHOP FOR MORTGAGE RATES & TERMS ...

A difference of even half a percentage point can make a huge difference in how much you pay over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.

PRE-QUALIFY FOR A LOAN ...

Ensure that you have your Finance in place and that you are pre-approved. Knowing your limit means you will be only looking at properties you can afford. This guarantees you won't be disappointed by becoming attached to a property you can't afford. Make sure you allow for all extra legal costs involved. eg. Stamp duty and conveyancing.  Being pre-qualified for a loan also allows you to move more swiftly when you find the right house, especially when you aren't the only interested buyer. 

Remember, "The property you saw today, and want to think about tonight, will sell today to the people who saw it yesterday and thought about it last night!"

FIRST HOME OWNERS GRANT ...

The Australian Federal Government introduced the First Home Owner Grant in July 2000 to offset the effect of the newly introduced Goods & Services Tax (G.S.T.) It is a one-off grant of $7,000 with no means test and applies in every State and Territory in Australia.

There are certain conditions on the grant, including:

• An applicant must be a person, not a company.

• At least one person must be an Australian citizen or reside here permanently.

• Neither the applicant nor their spouse or de facto can have received the grant before, anywhere in Australia.

• All owners of the home must be party to the grant application.

• Neither the applicant nor their spouse or de facto can have owned a home, either jointly, by themselves or with any other person, anywhere in Australia.

• An eligible home must be a principal place of residence and occupied within 12 months of either settlement or completion of construction.

• An eligible home must be within Australia and be a fixed dwelling that meets local planning standards.

How do I apply for the Grant?:

Even though this is a Federal Government matter, each State administers their own applications for the grant. Those buying in Queensland should apply:

• Direct to the Office of State Revenue or

• Through your financial institution if they are authorised to submit applications.

• When is the Grant paid?

• If you apply through the Office of State Revenue:

• For the purchase of an existing dwelling, after settlement.

• For a contract to build, following production of evidence that final inspection has occurred.

• If you apply through your approved financial adviser:

• For the purchase of an existing dwelling, at settlement.

• For a contract to build, on the first progress payment (first draw down on the loan).

How is the Grant paid?:

The Grant is paid by electronic funds transfer to a nominated bank account. It is paid to the applicant or to whomever the applicant nominates e.g. a bank or builder.

For more information or if you have any specific queries about your particular case, you should contact the Office of State Revenue for more information.

• Freecall: 1300-300-118

To find out whether you are eligible to receive the FHOG, pop onto the QLD Office of State Revenue web site and complete the eligibility checklist and get additional information.

DO YOUR HOMEWORK & RATE THE HOMES YOU TOUR ...

Get to know the market in the area you are wanting to purchase in.  I have a New Listing Alert email which I send out to my database on the day that a new home is listed for sale.  By receiving these emails, buyers find that it assists them in getting to know the Forest Lake market and when a property comes onto the market that interest them, they can contact me immediately to organise an inspection.

After touring each home, write down what you liked and didn't like. Develop a rating system which will help you narrow the field down to the house that's the best for you.

BUYING YOUR NEW HOME ...

Once you are confident that the property meets your needs and criteria in terms of its location, attributes and price range … buy it!  Being educated, through open for inspections and knowing the property market in the area you are wanting to purchase in, will give you the confidence to know that you are buying well.  

HOME INSURANCE ...

When you sign a Contract to buy a home, the home is at the Buyer’s risk from 5pm on the first day after the date of the Contract. This is a condition of the standard residential Contract in Queensland and is an important issue to attend to.

Usually the existing owner will also maintain their own insurance for the period from the date of the Contract until the date of settlement, however you as Buyer must also take out your own insurance for this period.

Then if anything happens to the property in this period where you have contracted to buy but have not yet actually paid for the property, then you are covered.

Simply call your insurance company and ask for a cover note for the period until settlement. 

Legal property conveyancing can be handled personally or by an appointed solicitor. We recommend that you engage the services of a solicitor competent in property conveyancing, who will represent your interests in the property transaction whether you are buying or selling.

The purchase of your most major asset is not the time to skimp on legal advice.

Whilst conveyancing is usually straightforward, issues do arise from time to time and it pays to have a solicitor on your side just in case. They will carry out searches of the property on your behalf if you’re buying, and ensure the documentation necessary to legally transfer the property to you is correct.

They liaise with any banks or financial institutions who may have a mortgage over the subject property and with any banks or financial institutions from whom the buyer is borrowing to purchase the property.

A quality legal representative will ensure that your property purchase is concluded with a minimum of fuss and stress, and ensure that the property you are purchasing has no hidden problems.  On settlement day they look after your interests to ensure the property is sold unencumbered, that the correct parties are paid the right amount for the property (after taking into account any adjustments necessary for rates etc.) and that documentation to transfer the property to the new owner is lodged.

To ask any questions about conveyancing or obtain a quote for your conveyancing, contact one of these solicitors, who have carried out conveyancing for many of my previous clients.   This is purely a service that I offer to you and does not involve any payment to me from them.

When you enter into a contract of sale to purchase a property you have the option of obtaining inspections on the property at your own expense.  The standard contract of sale has provision for a building inspection and pest inspection but other inspections can be obtained by asking your agent to include these in the special conditions of the contract.

To ask any questions about pest and building inspections or obtain a quote, contact one of these pest and building inspectors.

When a property is offered for sale by Auction there are special Auction conditions which are specified by the Vendor on the contract. The contract used however is the standard REIQ contract.

Basically buyers bid on the property in a previously nominated location by indicating to the Auctioneer the price which they are willing to pay for the property.

A sale under the hammer at Auction is "unconditional" and settlement will occur 30 days later unless otherwise specified by the Seller. Buyers must have finance arranged as well as carried out any inspections on the property prior to the Auction.

A deposit usually of 10% is to be paid by the buyer if they are the successful bidder.

Good luck, and remember, if you have any questions I am only a phone call or email away!

Additional information is available on the REIQ website,

or contained in this brochure "Buying a Home" from the Office of Fair Trading.

Bye for now

Kerrylea

"The property you saw today, and want to think about tonight,

will sell today to the people who saw it yesterday and thought about it last night!"

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