Buying a property in Melbourne can be an exciting but complex process. Here’s a detailed buyer’s guide to help you navigate the Melbourne real estate market:
1. Determine Your Financial Position And Borrowing Power:
- Budgeting:
- Calculate your income, expenses, and savings.
- Determine how much you can realistically afford for a deposit and ongoing mortgage repayments.
- Factor in additional costs like stamp duty, legal fees, and building inspections.
- Loan Pre-Approval:
- Obtain pre-approval from a lender to understand your borrowing capacity.
- This demonstrates to sellers that you’re a serious buyer.
- Explore various loan options from banks, credit unions, and mortgage brokers.
- Government Grants and Concessions:
- Research potential eligibility for the First Home Owner Grant (FHOG) and stamp duty concessions.
- Visit the State Revenue Office Victoria website for detailed information.
- Deposit:
- Aim for a 20% deposit to avoid lender’s mortgage insurance (LMI).
- Consider the First Home Super Saver Scheme (FHSS) to use superannuation savings.
2. Narrow Down Your Property Needs:
- Location:
- Research Melbourne’s suburbs, considering factors like proximity to work, schools, public transport, and lifestyle amenities.
- Attend open inspections in your desired areas to get a feel for the neighborhood.
- Property Type:
- Decide between a house, apartment, townhouse, or unit.
- Consider your lifestyle, family size, and future needs.
- Property Features:
- Create a wish list of essential and desired features, such as the number of bedrooms, bathrooms, and parking spaces.
3. Research and Property Inspections:
- Online Portals:
- Utilize real estate websites like realestate.com.au and Domain.com.au to search for properties.
- Real Estate Agents:
- Engage with local real estate agents who specialize in your target areas.
- Attend open inspections to assess property condition and suitability.
- Property Inspections:
- Arrange building and pest inspections to identify potential issues.
- This is crucial to avoid costly surprises after purchase.
- If the property was built before 1990, consider an asbestos assessment.
4. The Buying Process:
- Private Sale:
- Negotiate the purchase price with the seller through the real estate agent.
- Ensure all terms and conditions are clearly outlined in the contract of sale.
- Auction:
- Register to bid at the auction.
- Understand the auction process and set a maximum bidding limit.
- If you are the successful bidder you will be required to sign the contract of sale on the day.
- Conveyancing:
- Engage a conveyancer or solicitor to handle the legal aspects of the property transfer.
- They will review the contract of sale and ensure a smooth settlement.
- Contract of Sale:
- Carefully review the contract of sale before signing.
- Pay attention to details such as settlement dates, inclusions, and special conditions.
- Cooling-Off Period:
- In Victoria, there is typically a three-business-day cooling-off period for private sales.
- This allows you to withdraw from the contract, but penalties may apply.
5. Settlement:
- Final Inspection:
- Conduct a final inspection of the property before settlement to ensure it’s in the same condition as when you made the offer.
- Settlement Day:
- Your conveyancer or solicitor will handle the transfer of ownership.
- You will receive the property keys and become the legal owner.
- Post-Settlement:
- Arrange for utilities connections, home insurance, and any necessary renovations.
Key Considerations:
- Stamp Duty:
- Factor in stamp duty costs, which vary based on the property’s purchase price.
- Council Rates and Body Corporate Fees:
- Understand ongoing costs associated with the property, such as council rates and body corporate fees (if applicable).
- Foreign Investment Review Board (FIRB):
- If you’re a foreign buyer, you may need FIRB approval.
Other Useful Resources:
- State Revenue Office Victoria: sro.vic.gov.au
- Consumer Affairs Victoria: consumer.vic.gov.au
- realestate.com.au
- domain.com.au
By following this guide, you can increase your chances of a successful property purchase in Melbourne.