First Home Buyers Guide Finance2 PDF

Ultimate FIRST
home Buyers
Guide
May 2011, First Edition
Buying a home can be a daunting task and is one of the biggest

financial decisions you will ever make.
Searching for the perfect home in the right area, organising finance
and negotiating the sale is a lot of hard work but if you do your
homework and invest the appropriate time you will find the ideal
home that meets all of your criteria.
This guide has been designed to help you to navigate the process
of buying your first home.
www.realestateVIEW.com.au
The following guide is an overview of the buying

process. Each state will vary with rules and
regulations. Your relevant state authority should be
contacted to obtain the most accurate information.
Ultimate FIRST home buyers Guide:

Ultimate First Home Buyers

Guide Contents
Should I Buy or Rent?
Finance
Table 1: Pros & Cons of Buying vs. Renting
Understanding The Costs Involved When Considering
to Rent or Buy?
Table 2: Calculate the Cost of Renting
Table 3: Calculate the Cost of Buying & Home Ownership (Your Own Home)
What Can you Actually Afford? Dont Guess!
How Much Can you Borrow?
Understanding the Types of Loans Available on the Market
Table 4: Types of Loans Available to First Home Buyers
Pre-approval
What is Pre-approval?
Why do you Need It? The Benefits
Government Assistance
First Home Owner Grant
Eligibility Checklist
10
How to Apply for the FHOG and Additional Grants
10
Applying For a Home Loan
11
Choosing the Right Home Lender
11
What a Lender Can Expect of you
12
Table 5: Process & Criteria
12
Your Loan Documents What to Expect!
14
Questions you Should Ask your Lender when Taking Out a Mortgage Loan 14
The Property
Understanding the Market
16
Sources of Information/Research
16
Making a List
17
Buying an Off The Plan Home vs. an Established Home
17
Table 4: Pros & Cons Buying Off the Plan vs. Established Homes
17
Buying Methods
20
Table 5: Various Buying Methods
20
The Role of a Buyers Agent
25
Who are Buyers Agents?
25
How a Buyers Agent Can Help You Purchase Your Home
25
Costs Involved
25
Finding a Professional Buyers Agent
25
Locating Properties For Sale
26
Inspecting a Property
27
Planning Your Schedule
28
Open for Inspection Planner
29
Attending an Open For Inspection
29
Things to Bring to an Open For Inspection
29
Things to Look Out For at an Open For Inspection
29
Checklist Open For Inspection Buying Checklist
33
Other Questions & Things to Consider

Ultimate First Home Buyers

Guide Contents
Taking the Next Step
Finding Out Reasons For Selling
34
The Contract of Sale
34
Additional Documentation
35
Professional Building Inspections
38
Things To Consider at
Exchanging Contracts
39
Settlement
Before Settlement
39
At Settlement
39
After settlement
39
Things to Do When Moving In
Moving Checklist
40
Glossary
Glossary
45
pg 3

When it comes to property, the age-old issue has always been should you rent or
should you buy? There are strong arguments for both and therefore it is important
to consider the facts and your own personal circumstances before making a final
decision. The comparison chart below will assist you to weigh up the pros and cons
to make an informed choice.
Table 1: Pros & Cons of Buying vs. Renting

Pros
Renting
Buying
>> You can live in an area that you may not

be able to afford to buy in.
>> Investing in your own asset.
>> Easier and more cost effective to move

between properties.
>> Full flexibility to add your own personal

touch to the property.
>> Fewer financial commitments.
>> Once your mortgage is paid, your

monthly expenses decline significantly.
>> Property maintenance is the

responsibility of the property owner.
>> Equity is being built as it is an investment

which grows in value over time.
>> In many cases, weekly/monthly

payments are cheaper than owning
a home.
>> The repayments of your loan act as

a compulsory saving plan.
>> It provides you with flexibility on the

term in which you choose to live in a
particular property/location.
>> You can borrow against equity to further

invest or convert it into cash and use it
for other purposes.
>> Lower start up costs (bond vs stamp

duty).
Cons
>> Your money is not being put towards

an asset.
>> You now have a financial commitment

to the bank.
>> You dont have any control over renewal

of your rental agreement.
>> Your budget might restrict where you

can live.
>> You are paying off someone elses asset.
>> Property maintenance is your

responsibility.
>> Lack of flexibility to change the property

to suit your individual taste.
>> Limited by landlord guidelines
i.e. no pets, visitors, smoking, etc.
>> Threat of eviction/or lack of ability
to renew lease.
>> You do not have control over rent
increases.
>> Saving a big deposit. With property

values rising, saving a 10% deposit
can take years.
>> The purchase process is a costly one
with the need to pay a 10% deposit,
stamp duty, legal fees, loan establishment
costs and mortgage insurance.
>> Affordability of the loan during major
life events i.e. pregnancy/job loss.
>> Interest rate fluctuations can impact your
weekly budget and disposable income.
pg 1

Understanding The Costs Involved When Considering to Rent or

Buy?
There are various costs involved in the buying and renting processes. These must
be individually calculated and examined in order to determine which option is more
suitable for your personal circumstances.
Table 2: Calculate the Cost of Renting

Use the following table to establish the costs you will incur by opting to rent a property.
Expense
Once Off /
Ongoing
Amount
Notes
Upfront Rental
Payment
Once Off Payment
INSERT
AMOUNT
In most instances you will be

required to pay a months rent in
advance; however this payment
amount differs from state to state.
For more information about the upfront costs
you will incur by state refer to All You Need
to Know About a Bond and Upfront Rental
Payment, pg 7 of our Ultimate Rental Guide.
Bond
Once Off Payment
INSERT
AMOUNT
The rate of the bond will slightly vary

from state to state, but generally is
equivalent to 4 weeks rent.
For more information about the upfront costs
you will incur by state refer to All You Need
to Know About a Bond and Upfront Rental
Payment, pg 7 of our Ultimate Rental Guide.
Rental Application
Fee (if applicable)
Once Off Payment
INSERT
AMOUNT
You may be requested to pay a

rental application fee which is used
to cover the cost of a credit check
or other costs related to processing
the application.
Monthly Rental
Payment
Monthly Payment
INSERT
AMOUNT
Cost of rent will vary from property

to property and depends on the
location. Research the cost to rent
properties in your preferred area
online to calculate costs.
Utilities
Quarterly Payment
INSERT
AMOUNT
You will need to pay for electricity,

gas and in some cases water usage.
Contents Insurance
Annual Payment
INSERT
AMOUNT
This will cover you for damage or

loss of personal belongings.
Connections
Once Off Payment
INSERT
AMOUNT
This includes cost of the

connections of all the utilities
and services you will need or wish
to have, which are not paid by
the landlord as part of the rental
agreement.
pg 2

Table 3: Calculate the Cost of Buying & Home Ownership

(Your Own Home)
Use the following calculator to establish the costs you will incur by opting to buy your first property.
Expense
Once Off /
Ongoing
Amount
Notes
Deposit
Once Off Payment
INSERT
AMOUNT
The deposit needed to purchase a

home is 10% of the asking price.
However, if you borrow in excess
of 80% of the property value, you
will be required to pay mortgage
insurance.
Loan
Establishment Fees
Once Off Payment
INSERT
AMOUNT
Some financial institutions will

charge an establishment fee to
cover the set up costs for your loan.
Consult your financial institution to
determine establishment fees.
Lenders Mortgage
Insurance
Once Off Payment
INSERT
AMOUNT
If your deposit is less than 20%

of the value of the property,
the lender will require you to pay
mortgage insurance.
determine likely costs to insure your loan.
Mortgage
Registration
Once Off Payment
INSERT
AMOUNT
Your mortgage deed must be

registered with the government.
This process will incur a fee.
determine likely costs of your mortgage
registration.
Connections
Once Off Payment
INSERT
AMOUNT
The cost of the connections of all

the utilities and services you will
need or wish to have.
Property Valuation
Once Off Payment
INSERT
AMOUNT
A third party often chosen by the

Lender needs to determine the value
of your land and improvements.
Stamp Duty
Once Off Payment
INSERT
AMOUNT
Stamp duty costs will differ from

state to state and will depend on
the purchase price of the property.
determine likely costs of your stamp duty.
Legal
pg 3
Once Off Payment
INSERT
AMOUNT
Will cost you approximately $600$800. This covers the legal transfer
of ownership and will be conducted
by a solicitor or conveyancer.

Mortgage
Repayments
Monthly Payment
INSERT
AMOUNT
Mortgage rate will depend on

a variety of factors including
institution, loan type, whether
payment consists of interest only or
principal and interest. You also need
to consider the impact of rate rises.
Utilities
Monthly Payment
INSERT
AMOUNT
You will need to regularly pay for

the costs of all your utilities and
services.
Council Rates
Quarterly / Yearly
INSERT
AMOUNT
Payable yearly or quarterly, your

council rates will depend on the
council in which your property is
located and the value of your home.
Body Corporate
Fees
Quarterly Payment
INSERT
AMOUNT
If your property resides on a shared

block (e.g. is a townhouse, unit
or flat), it is likely to incur body
corporate fees. These fees cover
maintenance of common areas
and sometimes cover building
insurance. The fees will largely
depend on the condition of the
property, its features and the area.
Insurance
(House & Contents)
Annual Payment
INSERT
AMOUNT
If your property resides on its own

block, it will not be subject to body
corporate fees however you will be
responsible for building insurance
as well as content insurance.
Yearly Mortgage
Account Fees
Annual Payment
INSERT
AMOUNT
Your loan may be subject to a

yearly loan account fee. It is
important to consult your financial
institution to determine if this is
applicable.
Also make sure you budget for
possible rate rises, as interest rates
fluctuate yearly.
pg 4

Finance
What you Can Actually Afford? Dont Guess!

Before you begin house hunting the most important thing to do is to work
out exactly how much you can afford to spend on your new home. Many first
home buyers do this by simply calculating if they can afford monthly mortgage
repayments. However mortgage repayments, whilst significant, are not the only
thing that needs to be considered when determining how much you can afford to
spend on your new home. Buying a home can result in many unforeseen costs.
It is important to know all the expenses involved upfront to avoid any unwanted
surprises along the way.
How Much Can You Borrow?

The amount you can borrow will depend on a number of factors;
1) Your Income
This is the most important factor which will determine the exact amount you can borrow. Your
income needs to be able to cover repayments on your loan as well as your basic living costs. If you
are applying for the loan jointly with another person your repayment capacity may be greater,
which can mean greater borrowing power.
2) Employment Status

One of the main things that lenders will look at is if you are employed. The lender will look at
where you are employed and how long you have been employed by that corporation.
3) Financial Commitments

Lenders will look at all other financial commitments you still having owing. This can include car
repayments, personal loans, credit card debts and HECS debts.
4) Your Assets & Investments

Your savings and other investments will also impact your borrowing capacity.
5) Your Deposit

First home buyers should save around 10 20% of the property value as a deposit. The greater
the deposit, the less you will have to borrow and the lower your repayments will be. However, if
you borrow in excess of 80% you will be required to pay lenders mortgage insurance (LMI).
This document was prepared as a guide by Tomorrow Finance Group Pty Ltd
ABN 81 141 534 269 ACL 385347 (Tomorrow Finance). The information in this document is general and if you need advice
should seek professional financial advice on your circumstances. Tomorrow Finance is not responsible for any reliance on the
information in this document. The information in this document is current as at May 2011.
pg 5

Finance
6) Your Credit Record

The lender will check to see that you have no red flags against your name for defaulting on
previous loans, credit cards or other lines of credit by looking at your credit record.
It is worthwhile to check your credit record before you apply for a home loan so you are able to
amend information in your credit history if you believe it to be inaccurate.
Where can you check your credit record?
Veda Advantage Ltd provides a range of consumer information services to help consumers to be
better informed in making major decisions such as applying for a home loan. Veda Advantage
Ltd will give you access to your credit history so you can analyse your financial situation before
applying for that home loan.
To access a copy of your credit history, go to www.mycreditfile.com.au or phone (02) 9464 6000.
Understanding the Types of Loans Available on the Market

Every person is different and it is important to find the right mortgage that suits your needs and
lifestyle. To find the right mortgage it is important to assess the options available on the market to
determine which option is appropriate for you.
Table 4: Types of Loans Available to First Home Buyers

Use the following table to help you compare the types of loans available to first home buyers.
Home Loan Definition

Type
Advantages
Disadvantages
Standard
Variable
Home Loan
1. If interest rates
drop this means
repayments
might drop.
1. If interest rates rise,

repayments will rise
along with the amount
of interest paid.
2. Pay off your home

loan faster by making
extra payments
without incurring
penalties.
2. Extra features mean

you may pay a higher
interest rate than a
basic variable loan.
A Standard Variable
Rate Home Loan is one
of the more popular
types of loans for a first
home buyer. With this
mortgage the interest
rate is not locked in and
thus it moves up and
down when interest
rates change.
pg 6

Finance
Basic
Variable
Home Loan
Fixed Rate
Home Loan
Split Rate
Home Loan
Basic variable home

loans are sometimes
referred to as no frills
loans. This type of loan
is a good home loan
to consider if you are
not interested in added
features but still want
some flexibility with the
interest rate.
1. Lower interest rates

than the standard
variable loans.
1. Not as flexible as
standard variable
home loans.
2. Repayments are
generally lower than
standard variable
loans.
2. Offer less features
Fixed rate home loans

are popular for those
people who like to know
what they are paying
each month. The interest
rate for a fixed home loan
can be fixed for anything
between one and 10
years and it will remain
the same for the duration
of the loan regardless
what happens to interest
rates.
1. Even if interest rates

rise borrowers will
continue to pay the
same amount.
1. If interest rates fall

the borrowers
repayments will not,
they stay the same.
2. Fixed rate loans

generally offer cheaper
interest rates than
flexible home loans.
2. If you decide to sell

your home during
the fixed rate period
and you want to pay
off the loan in full the
borrower can be stung
with heavy fees.
A split rate home loan

is when you split your
home loan so part of the
loan is a variable rate
home loan and the other
half as a fixed rate home
loan. This type of loan
usually has a time frame.
After the time frame has
past the whole amount
of the loan is converted
into a variable rate loan
unless you renegotiate to
extend the split rate loan.
1. When interest rates

rise you can have the
interest rate security
of a fixed loan joined
with the repayment
flexibility of a variable
rate loan.
3. If the Reserve Bank

of Australia or one of
the four banks drops
interest rates this
means repayments
might drop.
3. Allows more precise

budgeting.
2. Additional payments
on a variable portion
can be made.
3.If interest rates

rise repayments
will increase
1. If interest rates rise,

the repayments on the
variable part of the
loan will also increase.
2. If interest rates
drop, the repayment
on the fixed rate
portion of the loan
will remain the higher
fixed amount.
3. Allows limited
additional
payments only.
pg 7

Finance
Introductory
Rate Home
Loan
No Deposit
Home Loans
The introductory
rate home loan or
honeymoon home loan
offers first home buyers
a lower interest in the
first year of the loan.
At the end of the first
year the interest rate
changes back to the
standard variable rate.
This loan allows for lower
fees because it usually
provides less features
and extra payment
rules to borrowers than
other loans.
1. What you save in

repayments can
help offset the costs
of stamp duty,
solicitors and moving.
1. Most banks charge

penalties if you decide
to get out of the loan
within the first 3-4
years after settlement.
2. When payments
are made at the
introductory rate,
the principal can be
reduced quickly.
2. Payments increase
after the introductory
period.
No deposit home loans

offer borrowers a
chance to borrow up to
100% of the purchase.
However, there are very
strict requirements and
assessment criteria
which can make approval
very difficult.
1. No need to save the

10% - 20% deposit
typically required by a
bank and non-bank.
1. The strict lending

criteria make
approval difficult.
2. Most no deposit
home loans include
additional features
such as repayment
and redraw options.
2. Only certain types

of properties can apply
for this loan.
3. Higher interest rates
initially and because
you are borrowing
more money you will
also pay more interest
in the long term.
4. Borrowers will most
likely be charged
Lenders Mortgage
Insurance (LMI) when
you borrow more than
80% of the property
price. In addition, extra
costs such as stamp
duty and legal fees.
pg 8

Finance
Pre-approval
What is Pre-approval?
A home loan pre-approval illustrates clear guidelines provided by your lender, on
how much money you have to work with, helping you narrow your property search
and put you in a strong position to negotiate with a vendor or bid at auction.
A home loan pre-approval is similar to full finance approval except that the property
you intend to purchase has not yet been determined. Some conditions usually need
to be met before full finance approval will be granted.
Why do you Need it? The Benefits

>> Pre-approval can give you a good idea of the type of mortgage you will be qualified for and the price
range you can afford.
>> Provides proof to the real estate agent and seller that you are conditionally approved for a specific
loan amount.
>> When you have found the right property you can focus on the purchase process rather than having
to sort out finance at the same time.
>> Sometimes, sellers will accept an offer below listed price and take a property off the market because
they know the buyer is serious.
>> Is offered by most lenders at no cost
Getting your loan pre-approved can make sense from both a peace of mind and time management
point of view but it is important to speak to your broker or lender to work out the best option for you.
Buyers Tip: Once you find a house you like, ask your lender for a pre-approval letter
that shows youre approved up to that homes asking price only. This will help
discourage the seller from increasing the asking price.
pg 9

Finance
Government Assistance
First Home Owner Grant
The First Home Owner Grant (FHOG) scheme was established by the Australian Federal Government
to encourage and assist home ownership. The First Home Owners Grant is a one-off, tax-free $7,000
payment provided to people buying their first home in Australia.
Eligibility Checklist
You are an Australian citizen or permanent resident buying or building your
first home in Australia.
The property you want to buy is a recognised house, unit or flat specifically
designed for people to live in.
You or your spouse/partner have not received a grant in any State or Territory of Australia.
You or your spouse/partner have not owned residential property, either jointly, separately
or with some other person prior to 1 July 2000, in any State or Territory of Australia.
You or your spouse/partner have not previously owned an interest in land in Australia that had a
residence for at least 6 months on it prior to July 1, 2000.
You or your spouse/partner have not received a grant in any State or Territory of Australia.
You are a person (not a company) and at least 18 years of age at the time of settlement
or completion of construction.
You must be able to occupy the home within 12 months of settlement or 12 month of building
completion if its a newly built home.
Note: There are minimum periods of occupancy required by each state or territory.
You must be able to apply for the grant within 12 months of settlement or completion
of a newly build home.
Understand joint applicants are restricted to a single application for a single property and only
one payment of $7,000 is made.
Based on the above information if you believe you are eligible to apply for the first home
owners grant, ensure to consult with legal representation beforehand to guarantee you are
a candidate to apply.
How to Apply for the FHOG and Additional Grants

The First Home Owner Grant is distributed on behalf of the Federal Government by the state and
territory governments. Each state in Australia may also offer additional grants for first home buyers.
For more information about the First Home Owners Grant or to obtain an application form take a
look at the website of the revenue office in your state or territory.
pg 10

Finance
Applying for a Home Loan

Choosing the Right Home Lender
Before you can even apply for your home loan, you will need to go through a home mortgage lender.
There are a number of different types of home mortgage lenders, some who deal directly with
prospective home buyers and others who merely put up money. The list below will help you compare
the types of home mortgage lenders available for first home buyers.
Mortgage Brokers
Mortgage brokers are professionals who bring together lenders and borrowers. A Mortgage Broker
will help you find the right home loan for your needs by researching a range of loans available from
multiple lenders even hundreds of lenders (usually banks) very quickly. Because Mortgage Brokers
are up to date with all the current home loans available, they act as the go to person for you for
mortgage information and will help you through the application and settlement process.
They generally charge the borrower nothing for their service, as brokers are paid a commission by
the lender when the mortgage is settled.
Mortgage Managers vs Mortgage Broker

A Mortgage Broker doesnt actually lend you money. Their role is to facilitate a loan - helping you
choose from a range of Lenders.
A Mortgage Manager or Non Bank Lender, on the other hand, does lend money. Non Bank Lenders go
into the financial markets, obtain funds, and then offer those funds to borrowers at particular terms.
Banks, Credit Unions and Other Lending Institutions

The loan officer at a bank, credit union or other lending intuitions is an employee who work to sell
and process mortgages and other loans provided by the employer. They often have a wide variety of
loan types to choose from, but all loans originate from one lending institution.
The loan officer will take your application and works to find a home loan that suits your needs. If
your personal credit is approved they will also help process the purchase.
pg 11

Finance
What a Lender Can Expect of You

It is not unusual for a lender to ask you different questions during your meeting to examine if you are
suitable for a loan.
Table 5: Process & Criteria

Use the following table to help you better prepare when meeting with a lender.
What a lender is looking for
What to bring
Proof of Identity
>> Proof of identity and photographic

identification.
>> Drivers license or Passport
Proof of
Employment
and wages
>> Your capacity to repay your

mortgage.
>> At least the three most

recent pay slips
>> The lender will be looking to see

how much you earn and the length
of your employment
>> A letter from your employer

detailing your income and
length of employment.
Financial
commitments
>> Have you had credit issues in the

past as well as -what you may owe
to other financial institutions.
>> Up to six months of bank statements

including personal loans, credit cards
>> This time frame may vary depending
on the lender, be sure to confirm
before your meeting.
>> The lender will also be referring
to your overall credit history.
pg 12

Finance
Assets,
Investments
& Additional
Income
>> Are you receiving

additional income?
>> What are your existing assets
and investments?
>> Are you receiving
additional income?
>> Up to three months of bank

statements including transactions
and savings accounts.
>> This time frame may vary
depending on the lender, be sure
to confirm before your meeting.
>> A letter from Centerlink if
you are receiving a pension / family
allowance.
>> Investment papers e.g.. A letter
from your real estate agent if you
are receiving rental income or if you
have shares and receiving income
you will need to provide all the
relevant paperwork.
>> An approximate value of
other assets such as furniture and
jewellery.
Insurance &
Superannuation
Home / Children
>> Details of your personal

insurance policy if relevant.
>> Documentation relevant to

your life insurance.
>> Details of your superannuation

account.
>> Superannuation details i.e.

How much you have in your
superannuation?
>> How long you have lived at

your current address?
>> If you own your current home

you should bring your previous
settlement documentations.
>> Your dependent children?
Be sure to confirm with your lender what is required from you to bring to your meeting beforehand to
avoid slowing down the process.
pg 13

Finance
Your Loan Documents - What to Expect!

When all your documentation is received the lender will have to verify and validate that all of
the information you have provided is true and correct. Verification requests may be sent to your
employers, mortgage holder/landlord and lending institutions.
The process of a loan application usually takes about one to two weeks but can be delayed depending
on the lender. If you have been approved for a loan, the lender should make you an offer by providing
you with your loan documents. You will need to read, sign and return these documents so your lender
can take the next steps when settlement time comes around.
Questions you Should Ask your Lender When Taking

Out a Mortgage Loan
When you are applying for a loan you should be sure to ask what features are offered with the loan.
Loan features can often save you money and help you pay off the loan faster.
>> Can I make additional payments without a penalty charge?
>> Is there a redraw facility I can use at any time? How can I access it?
>> Can I switch between loans?
>> Is the loan transferable to another property when I move?
>> What are the repayment options?
>> Can I switch the type of loan I have (fixed, variable etc) at no extra cost?
>> How often can I make repayments (weekly, fortnightly, and monthly)?
>> Do I have a choice of principle and interest or interest only repayments?
>> How much are these feature to use?
It is important that you ask your lender about the costs of all the above features and consider
how often you are likely to use these features.
pg 14

Finance
What is the Comparison Rate?

It is mandatory for all lenders to publish a Comparison Rate to help you compare different
types of loans. The rate helps borrowers know how much the loan will cost them per year / over
a long period of time.
Before you sign for a loan you should know exactly what fees and charges will be charged to your
loan account. The comparison rate does not include all the costs of a loan, so it is very important to
know exactly what is and is not included.
What the comparison rate doesnt include.
>> Government and statutory fees.
>> Lenders Mortgage Insurance or valuation charges.
>> Fee waivers or any discounts that your lender might apply to the loan.
>> Event based charges redraw fees or early repayment fees.
What the comparison rate does include.
>> The interest rate.
>> Loan approval and any other up-front fees.
>> Any ongoing account keeping fees.
pg 15

The Property
Understanding the Market

Before you venture out to inspect potential properties to purchase it is important to
do your research. These days real estate institutes, property portals and data sites
provide an array of information that enable you to be more informed about current
market conditions, suburb trends and other key information which may impact your
decision of where to buy and at what price.
Sources of Information/Research
1. Data Sites
Over recent years a number of sites have been established to enable consumers to access current
sales results and historical sales data. This information will assist you to gain a good grasp of
current market trends and historical growth patterns.
Some of them include;
>> PropertyDATA.com.au
PropertyDATA.com.au contains data collected by the real estate institutes across Victoria, New
South Wales and South Australia. The site will allow you to access the same comprehensive,
accurate and up to date property sales information relied upon by estate agents, valuers and
Australias major banks. The site provides free as well as paid property reports, median prices,
capital growth figures and suburb profile information.
>> Residex
Residex provides consumers with the ability to purchase information on all areas of the real estate
market, such as analysis of market movements, price estimation, historical growth data and more.
>> Real Estate Institutes
There are real estate institutes across each state of Australia that act as the industry body in that
specific state. The institutes amongst other things publish market commentary as well as median
prices and other market data.
2. Sold Archives on Property Portals
Aside from dedicated data sites, property portals also have sold archives to enable you to browse
recent sales for your suburb of interest.
3. Newspapers Auction Results & Commentary
Whilst newspaper readership and property advertising has declined in recent years, many of the
major newspapers provide detailed market analysis and commentary from a range of industry
leaders. Major newspapers will also publish weekly auction results on Sundays and Mondays.
pg 16

The Property
4. News & Blogs

It is also important to read some of the latest news and blogs to get a feel for what factors are
impacting the market at present.
Some of the best ones include;
>> Australian Real Estate Blog - http://reic.com.au/blogs/default.aspx
>> Australian Property Investor - http://www.apimagazine.com.au/
>> News.com.au property section - http://www.news.com.au/money/property
5. Attending Open Inspections
Attending open inspections are a necessary part of the research process. During the early stages of
your property search attend opens and take the time to talk to real estate agents as they are the
experts on real estate in your local area. For full details on things to consider at an open inspection
refer to page 19 of this guide.
Making a List
Before you begin looking at potential properties it is also important to make a list of exactly what
you are looking for and why. This will ensure that your decision to buy a certain property is based on
facts not just emotion. In addition if you are buying with a partner, family member or friend it will
ensure that you agree on the things that are important to both parties when buying a home.
Some important things to consider when buying;
>> What type of property are you looking for?
One of the most important decisions you will need to make is the type of property you wish to
purchase. There are three main things you will need to consider. These include:
The type of residence you are looking for i.e. house, apartment or townhouse. The type of
residence you choose will impact your level of privacy, shared areas and maintenance fees.
The type of material you require your home to be constructed from i.e. weatherboard, solid brick
or concrete to name a few. The type of material a home is built from is important as it will impact
the level of upkeep you will need to make on the property.
Would you prefer a newly built or established home? There are pros and cons to both. For more
information about the pros and cons for buying a newly built home vs. an established home refer
to Buying a home off the plan vs. an established home on page 7 of this guide.
>> Will the property accommodate your changing needs over time?
When buying a house you need to consider if the property will accommodate your needs not only
now but in the coming years. If you are planning to start a family or wish to start your own business
do you need additional rooms?
>> What public facilities are important to you?
It is important to consider what amenities you need close by. Do you need to be near public
transport to get to and from work? If you are into health and fitness is there a local gym? Or if you
have children, living close to a school may be important.
By considering some of these crucial questions early on you will be able to spend your time on seeing
properties which are in line with what you are looking for.
pg 17

The Property
Buying an Off The Plan Home vs. an Established Home

Table 4: Pros & Cons Buying Off the Plan vs. Established Homes
Pros
Established Home
Off the Plan
>> Know your settlement date:

When you purchase an established home
you know exactly when your settlement
date will be and have the opportunity to
negotiate this on occasion.
>> Lock in a price: Able to buy a home

and lock in the price while construction
takes place. This means that even if
property values rise during construction
you will still pay the same amount for
the property.
>> Building inspections: With an

established home you can hire a
professional building inspector, surveyor
or architect to provide a professional
building inspection report of the
property you intend to purchase.
>> Know exactly what you are getting:
There are no surprises; you can see
exactly what you are going to get for the
purchase price.
>> More choice: There are more
established homes than new ones which
means you can be a critical shopper,
comparing different features until you
find exactly the right combination at the
right price.
>> Have time to save for a deposit:

Typically properties purchased off the
plan have a longer settlement period
as you have to wait for the property
to be built. This means you will have
more time to save for the deposit on the
property and more time in general to
organise your finances.
>> Stamp duty Savings: Stamp duty
costs for properties off the plan will
generally be lower than buying an
established home.
>> Low cost in maintenance: You will not
have to pay as much for maintaining
the building as everything will be new
and should not break.
>> Builders guarantee: All new homes
built in Australia come with a 7 year
builders guarantee which means
structural or interior building faults
must be repaired by the builder.
>> More environmentally friendly:
There is a 5 star environmental standard
for all new homes and for renovations
and relocations of existing homes. It is
compulsory for new homes to have:
5 star energy rating for the building
fabric
Water efficient taps and fittings
A rainwater tank for toilet flushing or
a solar hot water system.
pg 18

The Property
Cons
>> Concessions: When buying an

established home you may have to
make concessions with regard to
features / design you want. As a result
you may need to spend money to
change the look and feel of the property.
>> Stamp duty costs: Stamp duty costs
for an established home will always be
greater than buying a home off the plan.
>> Dont know what you are getting:

Whilst you have an idea of the
layout, furnishings and structure of
the property, you are unable to see
exactly what you are buying. Once the
build is complete it may not live up to
expectations.
>> Construction and weather problems:
Construction or weather issues may
delay delivery. If a homes construction
is delayed you may need to seek
alternative accommodation which is an
added expense.
>> Limited recourse with the builder:
If there is a dispute with the builder,
you may have limited recourse as the
contract for large scale developments
resides between the developer and the
buyer.
>> Not allowed to inspect property:
The buyer will generally not be able to
inspect the property until completion
date which can be months or years.
>> Settlement date can change:
If construction is delayed this means the
settlement date can change which can
affect you organising your finance.
Buyers Tip: If buying off the plan, get a firm completion date from the developer
and ensure you seek professional legal advice before signing a contract with the
developer.
pg 19

The Property
Buying Methods
Before you venture out in the field to find your dream home it is important to
familiarise yourself with the various ways to buy property. This is because the
method for which the property is being sold will impact the process you need to go
through to acquire it.
Table 5: Various Buying Methods
What is it?
pg 20
Auction
Private Sale/
Treaty
Expression Of
Interest
Tender
A public sale
of property
where the
highest bidder
is normally
the successful
buyer.
A private sale has

no specified closing
date and is usually
negotiated between
a buyer and vendor
with the assistance
of an agent or legal
representative.
An expression of
interest is similar to
a private sale/treaty
however a formal
written offer must
be submitted for the
property by a specific
date.
A tender is a
very formal sale
process, which
requires potential
buyers to submit
a proposal in
response to
the request to
the owners
advertised
tender. Given
the complexity
of this process,
it is usually
only reserved
for premium
properties in the
residential sector.

The Property
Making an
offer
If a property
is for sale via
auction there
are two ways
you can make
an offer;
1. Before the
auction: You
can make an
offer prior to the
auction. Keep in
mind a property
remains on
the market
while a vendor
considers your
offer. A vendor
does not have
to accept preauction offers,
even generous
ones, and may
prefer to sell at
auction.
The offer is made

via the agent. The
vendor does not have
to accept your offer,
as they may wish to
wait to see what other
offers are made on the
property.
The offer is made via

the agent; however
you will be required to
fill in an expression of
interest document by
a certain date.
Your proposal
to the owners
advertised tender
is your offer.
This detailed
document may
include price,
interest rates and
terms. Because
of the complexity
of this process
each party
would have an
agent and legal
representative
to help complete
the tender for
submission.
2. At auction:
You can make
an offer at
auction. If you
are the highest
bid at the fall
of the hammer
after the
property was
declared on the
market you will
purchase the
property.
pg 21

The Property
Negotiation
There is no
negotiation
if you are the
highest bidder
above the
reserve price.
However, if
the property
is passed in
and you are
the highest
bidder you have
the right to
negotiate with
the vendor.
There is either an
asking price or an
indicative range in
which the owner
will consider offers.
As a buyer you can
negotiate with the
vendor to make the
sale subject to certain
conditions; however
the seller does not
have to agree to your
terms.
As a buyer you can

negotiate with the
vendor to make the
sale subject to certain
conditions; however
the vendor does not
have to agree to your
terms.
Commonly there
will be an initial
meeting between
the vendor and
yourself to
discuss terms
and negotiate
before you
submit the final
tender document.
Deposit
You must pay a

deposit on the
day following a
successful bid.
If your offer is
accepted you will
be required to pay a
deposit, if you have
not already done so.
If your offer is accepted

you will be required to
pay a deposit, if you
have not already done
so.
If the vendor is not

using an agent the
deposit must be
paid to their legal
representative and
held in their trust
account.
If the vendor is not

using an agent the
deposit must be
paid to their legal
representative and
held in their trust
account.
The owners
advertised tender
will disclose if
there is also a
required deposit.
In most cases
there is also a
cost to submit
the tender.
The cooling-off period

varies from state
to state. Below is a
breakdown for each
state;

varies from state
breakdown for each
state;
VIC: Victorians
who buy residential
property are legally
entitled to a coolingoff period of three clear
business days.*
WA: A cooling-off
period for a contract for
sale of land does not
apply.**
QLD: Queenslanders
who buy residential
entitled to a coolingoff period of five clear
business days.***
VIC: Victorians who

buy residential property
are legally entitled to
a cooling-off period of
three clear business
days.*
WA: A cooling-off
period for a contract for
apply.**
QLD: Queenslanders
who buy residential
entitled to a coolingoff period of five clear
business days.***
Cooling-off
period
pg 22
There is no
cooling-off
period for
residential
properties sold
at auction.
The cooling-off
period depends
on the tenders
terms. Each
tender will have
completely
different terms
set out. So each
transaction needs
to be treated
differently.

The Property
Cooling-off
period
pg 23
There is no
cooling-off
period for
residential
properties sold
at auction.

varies from state
breakdown for each
state;

varies from state
breakdown for each
state;
TAS: A cooling-off
period for a contract
of sale of land
does not apply in
Tasmania.
SA: When purchasing
residential property
in South Australia a
cooling-off period of
two clear business days
applies for a contract of
sale of land.****
NT: In the Northern
Territory a cooling-off
period of four clear
business days applies
and only from the
day after the legal
representative /
conveyance receives
the contract.
ACT: A coolingoff period of five
clear working days
applies to residential
properties sold in the
Australian Capital
Territory. *****
NSW: When
purchasing a
in New South Wales
the cooling-off period
starts at the time
the sale of contract is
made and concludes at
5.00pm on the fifth
day after the contract
was made.******
TAS: A cooling-off
period for a contract of
apply in Tasmania.
SA: When purchasing
in South Australia a
cooling-off period of
two clear business days
applies for a contract of
sale of land.****
NT: In the Northern
Territory a cooling-off
period of four clear
business days applies
and only from the
day after the legal
representative /
conveyance receives
the contract.
ACT: A cooling-off
period of five clear
working days applies
to residential properties
sold in the Australian
Capital Territory. *****
NSW: When
purchasing a residential
property in New South
Wales the cooling-off
period starts at the time
the sale of contract is
made and concludes at
5.00pm on the fifth day
after the contract was
made.******
The cooling-off
period depends
on the tenders
terms. Each
tender will have
completely
different terms
set out. So each
transaction needs
to be treated
differently.

The Property
Buyers Tip: If you are not confident negotiating with the agent, you may prefer to
engage a Buyers Agent or other professional to do the bargaining for you. For more
information about buyers agent please refer to page 14 of this guide.
Buyers Tip: The best way to learn how an auction works is to go to as many auctions
as possible. Go to a couple of auctions on properties that youre not intending to
buy. Observe the process and the way the auctioneer runs the show. Take note of the
strategies employed by those who are successful.
Notes:
*Victoria There are exceptions to this rule. For more information, consult the Sale of Land Act 1962 (Section 31)
or Consumer Affairs Victoria.
**Western Australia There are exceptions to this rule. Under the Retirement Village Act a cooling-off period only applies
to a contract of sale of land located within a retirement village.
***Queensland There are exceptions to this rule. For more information, consult the Property Agents and Motor Dealers Act
2000 (PAMDA).
****South Australia There are exceptions to this rule. For more information, consult the Office of Consumer and Business
Affairs.
***** Australian Capital Territory - The cooling-off period does not apply in the following cases:

- The property was purchased on the same day as a public auction at which the property was passed in.

- The buyer waives the cooling-off rights after having received independent advice from a solicitor

- A corporation

- The property was sold at auction or by tender
******New South Wales There are exceptions to this rule. For more information, consult with your solicitor/conveyancer.
pg 24

The Property
The Role of a Buyers Agent

Who are Buyers Agents?
A Buyers Agent is a person who works closely with the buyer through all the
relevant steps of purchasing a property. They are either fully licensed or act as a
representative under a licensed agency. A Buyers Agent is employed to eliminate
the stress and anxiety that is common when purchasing a property.
How a Buyers Agent Can Help You Purchase Your Home

A Buyers Agent can provide end to end services to support a buyers search and purchase on the
home. They can help you with:
>> Sourcing properties and creating a shortlist of the most suitable.
>> Suggest whether the property requires a building inspection and providing a contact.
>> Provide an accurate summation of the propertys worth.
>> Having the contract and other documents reviewed by a professional.
>> Assisting in the preparation of a Power of Attorney.
>> Negotiating the most beneficial deposit and settlement terms for your requirements.
>> Negotiating on your behalf for a private sale.
>> Bidding on your behalf for a sale by auction.
>> Negotiating access to the property before settlement if required.
>> Accompanying/representing you at the final inspection.
Costs Involved
>> An upfront fee is usually payable, sometimes described as an administrative fee. This amount varies
from $500 to $3,000 and is usually reimbursed once a property is secured.
>> The fee for a full service (which includes assistance from start to end of the purchase) is
approximately 2% of the purchase price.
>> The fee to secure a property that a buyer has found themselves varies between .5% and 1% of the
purchase price, depending on the work and time involved.
>> Consultancy fees may also be charged.
These are indicative fees only and can vary.
Finding a Professional Buyers Agent

A good place to find a licensed professional Buyers Agent in your area is on the Real Estate Buyers
Agents Association of Australia (REBAA) site - http://www.rebaa.com.au/
Information provided by Michael Ramsay, Director of Michael Ramsay Property (Buyers Agents) Vic 3141.
pg 25

The Property
Locating Properties For Sale

Once you have made a list of what you are looking for in a property and
understand the property purchase methods, the next step is to begin to shortlist
properties to inspect.
There are a variety of methods that buyers can use to help locate properties. These include;
1. The Internet
As the internet is now used by 87% of consumers to search for property it is the number one tool
agents use to advertise. The most popular sites in Australia to search for properties online are;
realestateVIEW.com.au
myhome.com.au
Domain.com.au
realestate.com.au
2. Newspapers
As the internet has grown in popularity listings in newspapers have reduced. Many agents do
however still use newspapers to advertise property and thus local and metro newspapers can still
be a useful resource to identify potential property.
3. Direct Contact
One of the benefits of contacting your local agent is that you have someone else helping you to find
your ideal property. If you are top of mind the agent may also notify you of new properties on their
books before they are listed on the internet.
4. Promotional Magazines
Larger real estate agencies usually produce weekly or monthly magazines to provide potential
buyers with a comprehensive list of properties they have for sale. These magazines are available
free of charge from most agencies as well as handed out at open inspections.
pg 26

The Property
Inspecting a Property
Once you have shortlisted some potential properties the next stage is to attend
open inspections.
Planning Your Schedule

As most open inspections are held at similar times and on similar days it is important to plan your
weekly open inspection schedule to ensure you dont miss viewing properties of interest.
Use the following inspection planner to help you plan weekly property inspections and keep track of
properties you have viewed.
pg 27

Property
Address
Viewing
Date/Time
Asking
Price $
Agent
Agents
Phone
Auction
Date/Time
Auction
Location
Offer
The Property
Open For Inspection Planner
pg 28

The Property
Attending an Open For Inspection

As a property buyer you should view a property several times before deciding to buy
it. The first visit will give you an initial impression and will allow you to determine
if the property meets requirements such as: location, size, age, style and access to
facilities. A second visit will allow you to identify things you may have overlooked on
your first visit, as well as clarify any questions you may not have asked the agent.
Things to Bring at an Open For Inspection

When you enter a property at an open inspection, you may be asked to provide proof of identity as
well as contact details to the agent. This is a security measure. It is not a legal requirement for you
to leave your details with an agent at an open house, but sellers can make this a condition of entry
to their property.
Aside from proof of identity, it is also advisable to bring a checklist and/or notepad to write detailed
notes about the property.
Things to Look Out For at an Open For Inspection

When inspecting the property there are a few things you should look out for, aside from those items
on your wish list.
Structural Issues
A major structural issue can add significant costs to home ownership. Some of the key structural
issues you should look out for include;
>> Sloping or bouncy floors may mean stumps need replacing.
>> Damp brick walls can indicate rising or salt damp.
>> Blisters or bubbles on paintwork can indicate termite activity.
>> Cracked walls can indicate subsidence, requiring the replacement of stumps.
>> Mouldy walls, lifting tiles, peeling paint or pools of water in wet areas can indicate
excessive moisture.
>> Fretting (cracked) brickwork can indicate major structural problems.
Traffic/Noise Levels
Make sure to visit the property at different times of the day to determine traffic and noise levels.
The street may be peaceful and quiet in the morning but in the evening, it may overflow with traffic.
Proximity to Key Activities
When inspecting the property make sure to find out the proximity of the property to key services
such as public transport, supermarkets and even schools. Although these services may not be
important to you they may be important to a potential buyer in the future when you decide to sell
the property.
pg 29

The Property
Open For Inspection Buying Checklist

When inspecting a home it is beneficial to use a checklist to conduct a thorough review of the
property. Checklists can reveal problems a home may have which may indicate to you that major
repairs are needed on the home.
Following is a helpful checklist for you to use during your open for inspections to ensure you dont
miss anything inside and outside the home.
pg 30
Ultimate home buyers Guide:

Open for Inspection

Buying Checklist
Property Details
TOILETS
Address
In bathroom
Agent/Agency
Powder room
Agent/Agency contact details
Windows
Inspection Date/Time
Ventilation fans
Sale price/auction price
Kitchen
Yes
Price negotiable
No
Yes
No
Breakfast bar/Benchtop
Yes
No
Countertops
Yes
No
Cooktops
Gas
Electric
GENERAL
Oven
Gas
Electric
Land size (sq. metres)
Hot water
Gas
Electric
Total property size (sq. metres)
Dishwasher
Yes
No
Rangehood
Yes
No
Ample cupboard space
Yes
No
Details
Size
Auction date (if applicable)

Any offers already made?
Age of home
Yes
No
Any rising damp?
Yes
No
Size
Easements on property
Yes
No
Air Con/Ceiling fans
Stories/Floors of building
Heating/Fireplace
Schools proximity
Flooring type
Public transport proximity
Telephone points
Shops proximity
Storage space
Anyexistingapprovedextensionplans

Living Areas
Details
Lounge
Dining
Family
LAUNDRY
Yes
No
Fees
Council
Yes
No
Size
Body Corporate
Yes
No
Separate room
Yes
No
Other
Yes
No
Storage space
Yes
No
Yes
No
Views
BEDROOMS
Flooring type
Size
Outside access
Built-in robes
N Room for washing machine
Yes
No
Walk-in robes
N Room for dryer
Yes
No
Ensuite
N CAR SPACE
Air Con/Ceiling fans
N Garage
Yes
No
Heating/Fireplace
Lock up
Yes
No
Remote control
Yes
No
Yes
No
Yes
No
Flooring type
Satisfactory paintwork
BATHROOMS
Number of spaces
Driveway
Size
Number of spaces
Ensuite
N Street parking
Shower
Number of spaces
Bath tub
Permit necessary
Yes
No
Vanity
Visitor permits
Yes
No
Cupboard space
Tiled/Painted
Flooring type
pg 31
Study
Please turn over

Open for Inspection

Buying Checklist
OutdooR area
FRONT
BACK
Size
OTHER
Balconies
Fencing/Walls
Yes
No
Yes
No
Tennis court
Landscaping
Yes
No
Yes
No
Swimming pool
Pool
Yes
No
Yes
No
BBQ
Clothes line
Yes
No
Yes
No
Deck/Veranda
Yes
No
Yes
No
Security locks/Gates
Yes
No
Yes
No
Storage
Yes
No
Yes
No
Roofing type
Yard faces
North
East
South
West
North
East
South
West
NOTES
pg 32

The Property
Other Questions & Things to Consider

>> Is there sufficient sound proofing?
If you are looking to buy a unit or apartment, it is important to check if the property has
sufficient sound proofing so you dont have to listen to your neighbours music or conversations.
Take particular notice of the building materials used and if they are solid and sturdy to provide
a good sound barrier.
>> Is there sufficient insulation?
Ensure you ask or check the type of insulation the property has, to ensure the property is
well insulated for the cold and hot months. This will also affect things such as heater and
air conditioner running costs.
>> Do special restrictions apply?
Some local councils have restrictions on the type of changes that can be made to a property.
These are generally known as covenants and can affect everything from the style of a fence
or even the colour of a roof.
>> Are there potential zoning changes?
Find out if there are any changes to zoning planned for the area before you consider buying
and decide if these are a possible advantage or disadvantage to the area and property value.
Extra Questions for Apartment/Flat/Unit Hunters:

>> Does the body corporate allow a BBQ on the balcony or courtyard?
With so many fire restrictions these days, some buildings do not allow BBQs to be lit on balconies.
Make sure to ask if there are such restrictions; if yes is it relevant for whole year or only during
certain time frames?
>> Does the body corporate allow tenants/owners to have animals?
If you have a pet this is the first question you must ask when considering a property.
Some complexes allow cats only, while others do not allow pets at all.
>> Is there permit parking?
Most apartments/flats or units only come with one car spot. However if you need more room it
is important to consider where you will park the additional vehicles. Some councils dont allow
occupants to apply for a permit if they live in an apartment complex. Make sure to ask the agent
if there is permit parking available; if yes, how much is it going to cost you?
pg 33

Finding Out Reasons For Selling

Once you have found a property that you are interested in buying it is a
good idea to find out a bit more information about the property and reasons
the owner is selling.
Questions to Consider;
>> Has the owner already purchased elsewhere or needs to move for their job? This presents an
opportunity to possibly negotiate the price as the vendor may need to sell quickly.
>> How long has the property been on the market? The timeframe the property has been on the market
will give you an indication of interest in the property. If the property has been on the market for a
while it is important to probe the agent to find out why.
>> How many offers have been made on the property? If it is a private sale, finding out how many other
offers have been made is important. If there is a lot of competition it may mean you need to go in
with a higher offer to secure the property.
>> Has the property been passed in at auction (if so, what was the highest bid?). If a property has been
passed in and you would like to make an offer finding out what the highest bid was will help you work
out what your starting offer should be.
>> Is the vendor open to offers before auction? If you are keen to buy a property and dont want to wait
until auction find out if the seller is willing to take offers before the auction. You never know they
may accept your offer.
The Contract of Sale

The contract of sale is the key document which commits you to the purchase
of a property.
A copy of the contract may be made available to the buyer and can be obtained
from the vendor through the agent. It is also important, as the buyer, to have a
solicitor or conveyancer check the document.
The contract contains;
>> Particulars of the sale such as details of the property
>> Names of the vendor and buyer
>> Vendors estate agent
>> Price of the property
>> The deposit paid
>> Balance owing at settlement
>> Date of settlement (the day you become the owner)
>> Special and general conditions
>> Additional documentation relevant to the property (alternatively known as the Vendor Statement)
pg 34

Additional Documentation
In most states in Australia there will be additional documents attached to the
contract which provides the buyer with detailed information about the property.
As this documents contents and name differs by state the table below will help you
determine what the document is referred to and its contents in your state.
Victoria
(VIC)
Vendor Statement Section 32

What is it? The Vendor Statement is a document prepared by or on behalf of
the vendors solicitor/conveyancer. The document informs you, the potential
buyer, of any relevant information about the property you must be aware of.
What does the document include?
What does this document include?
This document may include;
>> Building restrictions and copies of any permits issued for work carried out
>> A copy of the title showing existing boundary measurements of the land
>> Details of any mortgage over the property
>> Details of any outgoings such as any rates, body corporate fees or any other
charges that may apply
Is it compulsory? In Victoria it is compulsory for the vendor to provide a
potential purchaser with the Vendors Statement before a contract of sale is
signed. If the property is being sold at auction, a copy of the Vendors Statement
and the contract of sale must be available for inspection before the auction.
Note: If the Vendors Statement contains incorrect or insufficient information, as a buyer you
should discuss these issues with your solicitor/conveyancer.
New South
Wales
(NSW)
Schedule 1 Prescribed Documents

What is it? The Schedule 1 Prescribed Documents are documents prepared by
the vendors solicitor / conveyancer which inform you, the potential buyer, of
any relevant information about the property you must be aware of.
What do these document include?
These documents may include;
>> Copies of all deeds and restrictions on the use of land
>> Details of any outgoings such as any rates, body corporate fees or any other
The full contents of Schedule 1 Prescribed Documents can be found in the
Conveyancing (Sale of Land) Regulation 2010 (NSW).
Is it compulsory? In New South Wales it is compulsory for the agent to have
a copy of the Schedule 1 Prescribed Documents with the contract of sale before
they can market the property.
pg 35

South
Australia
(SA)
Form One Disclosure Statement

What is it? It is the vendors sales agents responsibility to prepare the Form
One Disclosure Statement and to make all the inquiries necessary to do so
accurately. This document discloses any information about the property which
may negatively alter the value of the property. This is to ensure that you, the
potential buyer, know exactly what you are purchasing.
>> Details of any outgoings such as any rates, body corporate fees, or any other
Is it compulsory? In South Australia it is compulsory for the vendor to provide
a potential purchaser with a Form One Disclosure Statement before a contract
of sale is signed.
Queensland Currently there is no requirement under legislation in Queensland for a seller to

provide relevant information about the property to prospective buyers.
(QLD)
Western
Australia
(WA)
Sellers Disclosure Statement

What is it? The Sellers Disclosure Statement is a document prepared by the
vendors solicitor/conveyancer for the estate agent. This document discloses
any relevant information about the property which you, the potential buyer,
must be aware of.
>> Details of any outgoings such as any rates, body corporate fees, or any other
Is it compulsory? In Western Australia it is not compulsory for a seller to
provide the Sellers Disclosure Statement to a potential buyer.
Northern
Territory
(NT)
Currently there is no requirement under legislation in the Northern Territory

for a seller to provide relevant information about the property to prospective
buyers.
Tasmania
(TAS)
Currently there is no requirement under legislation in Tasmania for a seller to

provide relevant information about the property to prospective buyers.
pg 36

Taking The Next Step
Australian
Capital
Territory
(ACT)
Required documentation for the sale of residential property or land

What is it? In the Australian Capital Territory, the vendor of a residential
property must provide certain documents and reports before the property is
offered for sales. These documents disclose any relevant information about the
property which you, the potential buyer, must be aware of.
What do these document include?
These documents may include;
>> An assessment of the physical condition of the property structure
>> Statement of any provisions that may influence or restrict what can be done to
the house or land
Is it compulsory? In the Australian Capital Territory it is compulsory for the
vendor to provide a potential purchaser with the required documents before the
property is offered for sale.
pg 37

Your Complete Guide to

Buying Your First Home
Professional Building Inspections
Sometimes it is a good idea to hire a professional building inspector, surveyor or architect to provide
a professional building inspection report for the property you intend to purchase. This can be
particularly important if you have noticed any potential structural issues like cracking but still wish
to proceed with the purchase.
A qualified inspector will know what to look for and will see through any cosmetic improvements
covering up faults that may be missed by the untrained eye. The inspector will provide a written
report listing faults in the property, whether they can be repaired and how much these repairs are
likely to cost.
You may be able to use this report to negotiate the price and conditions in the contract with the vendor.
Buyers Tip: The fee for a professional inspection service is small compared with the
cost of buying a property requiring extensive unforseen repairs. Even if major faults
are not found, you can use minor faults discovered in the pre-purchase inspection as
the basis of an ongoing maintenance program if you decide to buy the property.
pg 38

Things to Consider at Settlement
Exchanging Contracts
Exchanging contracts is one of the main components of buying a property. Neither you nor the seller
is legally bound to go ahead with the sale until a written contract is exchanged.
Two identical copies of the contract of sale are prepared, one for the purchaser and one for the
vendor. Each party must sign their own copy of the contract of sale, and then they are exchanged.
The time between the exchange of contract and settlement can be anything between 30 to 125 days;
however this can change or be negotiated with the vendor.
Before Settlement:
>> Arrange the balance of the purchase price. This means ensuring your mortgage loan has been
approved by the bank so you have sufficient funds at settlement.
>> Ensure that your solicitor/conveyancer has prepared all the documentation that will be required to
complete the purchase on the day of settlement.
>> Ensure your solicitor/conveyancer has contacted the vendors legal representative to arrange the
date, place and time of settlement.
>> Ensure your solicitor/conveyancer contacts you prior to settlement with the exact date, time of
settlement and the amount of funds that you are required to provide.
>> It is also important to make sure the property is insured before settlement because some lenders
may not lend you money unless the building is insured and evidence of insurance prior to settlement
is provided.
At Settlement:
>> Ensure your solicitor/conveyancer has paid the balance of the purchase price at the time and place
specified prior to settlement.
After Settlement:
>> After settlement, the vendors solicitor will contact the real estate agent that sold you the property
and instruct them to release the keys of the property to you. This normally occurs after settlement
on the same day.
>> Your solicitor will contact you to confirm settlement has taken place. They will also send you a
Statement of Adjustment to show you how the funds have been paid to all parties.
pg 39

Moving Checklist
Things to do when moving in

Moving into a home is a difficult, exhausting and tedious task. Below is a helpful
checklist you can use to ensure you complete all of the necessary tasks during
your move.
6-8 weeks before moving:

Plan your moving transportation (truck rental, hiring movers, friends, etc.).
Create a folder to keep a record of everything related to your move (receipts, inventory, etc.).
Include any estimates you may have acquired:

Removalists
Truck Hire
Cleaning Services
Confirm with the agent when you can pick up with keys. This will determine your moving day.
If you are hiring removalists, get estimates from different movers to help compare prices.
Research storage facilities if needed.
Redirect your mail and fill out a Change of Address form at a post office or online.
Plan how you will move vehicles, plants, pets and valuables.
Design and pre-plan your space. Try to establish the exact purpose of every room;
this will enable you to pack boxes accordingly you can use a floor plan or sketch.
Hold a garage sale, donate, sell, or throw out unnecessary items.
Acquire packing materials:

Boxes
Labels
Tape/tape gun
Markers
Newspapers/bubble wrap
Pre-plan and schedule repairs to be done that you have committed to making.
Return borrowed or rented items.
Contact the local council to arrange a rubbish pick up if you are getting rid of a lot of stuff.

Finalise moving transportation and make necessary arrangements (i.e. helpers) .
Schedule disconnection / connection of utilities at old and new home:

Phone
Garbage
Internet
Gas
Cable
Electric
Water
Discontinue any delivery services, automated payment plans and local memberships (i.e. gym).
Change your contact details with various service providers (banks, licence , insurance, lawyer, etc.).
pg 40

Moving Checklist
If you have a pet you must change/update its registration with your council.
Organise contents insurance if you dont already have any.
Create an inventory list of items (furniture, boxes etc) to use as a check list on moving day.
Begin packing non-essential items.
Label boxes by room and contents (bathroom, kitchen, laundry, etc.).
Identify valuable items to transfer separately label as DO NOT MOVE.
Create an essentials box to keep with you on the day of your move and the first couple
of days of moving so you dont have to search through and open all of the boxes.
Store valuable items like jewellery and legal documents at the bank /
or in a safe place while moving.
Confirm the time of settlement with your Lawyer/Conveyancer if buying.
Contact a cleaning service, if you are using one, to ensure they are available on moving day.
Additional tips if you are renting:
Formally notify your landlord or property manager of the date youre vacating the premises.
When moving out of a rental property, you may need to steam clean your carpet,
and ensure the property is returned in a satisfactory state.
Arrange for a property inspection to recoup the bond.

Continue packing and clean as you go.
Call and confirm all details with the moving company if you are using one.
Arrange for a lock smith to change the locks on moving day.
Arrange time off work if possible for moving day.
Disassemble non essential furniture (desks, shelves, etc.) and wrap it to minimise damage.
Try to use up perishable food.
Contact your council about practical things like rubbish collection day.
pg 41

Moving Checklist
1-4 days before moving:

Make a schedule or action plan for the day of the move.
Plan when/how to pick up the truck (if rented).
Defrost the freezer and clean the fridge.
Drain fuel from lawn mowers and discard any hazardous or flammable substances which could
prove dangerous during the moving process.
Make sure essential tools are handy (screwdrivers, tape, padlock if renting a truck, vacuum cleaner, etc.).
Pack a bag for water bottles, pen/paper, snacks, documents, and essentials.
Set aside boxes/items that you have decided to move yourself.
Moving day:
At your old home:
Remove bedding and disassemble beds be sure to pack bedding in your essential items box.
Take movers/helpers through the house to inform them of what to do.
Check off all furniture and boxes against your inventory list as they go into the moving truck.
Complete one last check of the old property to ensure nothing was left behind ( i.e.) look behind
doors and in cupboards, etc.
Leave your contact information for new residents to forward mail.
Make sure the movers have the correct new address and you have their mobile number to
contact them if there is a confusion.
Carry all important items with you (passports, cash, other important documents, etc.).
Lock the windows, doors and turn off the lights.
Return keys if applicable.
At your new home:
Verify utilities are working:

Phone
Gas
Internet
Electricity
Water
Heating & Cooling
Clean the kitchen and vacuum as needed (especially where furniture will be going).
Direct movers/helpers where to put things.
Change the locks.
Assemble beds and make up beds as soon as possible.
Begin unpacking start with the kitchen and bathroom and other essentials.
pg 42

Moving Checklist
CHANGE OF ADDRESS CHECKLIST

Use the following checklist to help you keep track of who you have provided your
new details to.
Financial
Company
Name
Account
Number
Reference
Number
Contact
Number
Done
Company
Name
Account
Number
Reference
Number
Contact
Number
Done
Home Insurance
Building Insurance
Bank 1
Bank 2
Bank 3
Rental / Hire
Purchase
Health Policy
Employer - Payroll
Other
Services
Telephone Land Line
Mobile
Internet
Cable
Water
Gas
Electricity
Electoral Roll
Garbage
Mail Redirection
Other
pg 43

Moving Checklist
Health
Company
Name
Account
Number
Reference
Number
Contact
Number
Done
Company
Name
Account
Number
Reference
Number
Contact
Number
Done
Private Health
Insurance
Medicare
Doctor
Dentist
Other
Others
School / University
Newspaper
Gym Membership
Pet Registration Council
Other
Miscellaneous
Done
Notes
pg 44

Glossary
>> Agent (Real Estate): A licensed and fully trained individual who aids in the process of selling a
property.
>> Auction: The public sale of property where the highest bidder is normally the successful buyer.
>> Building Inspection: An inspection generally carried out prior to the purchase of a property
to ensure the building is structurally sound. Contracts of sale can be made to subject to the
satisfactory building inspection.
>> Building Insurance: Insurance taken out by the owner of the property to insure the property
against risks such as fire, landslip etc. The responsibility to insure the property often passes to the
buyer on exchange of contracts.
>> Comparison rate: The Comparison Rate provides an indicative interest rate that takes into account
certain costs associated with setting up a loan.
>> Contents Insurance: Insurance that covers the material possessions within your home, for
example, electrical goods such as Plasma TVs and stereo systems, furniture, curtains and carpets.
Certain items, such as expensive computers, may need additional insurance.
>> Conveyancing: The legal process for the transfer of ownership of real estate.
>> Cooling Off Period: A length of time in which the two sides to a purchase agreement, or contract,
can think things over and cancel. The length of time may vary between each state or territory.
>> Expression of Interest: An expression of interest is like a private sale / treaty, however a formal
offer must be submitted for the property by a specific date.
>> Mortgage Protection Insurance: This type of insurance is taken out by a borrower to cover the
borrowers loan repayments in the event that they are not able to meet them through specific events
such as serious illness or redundancy.
>> Passed In: A property is passed in at auction if the highest bid fails to meet the reserve price set by
the seller.
>> Private Sale/Treaty: A method of sale which has no specified closing date and is usually
negotiated between a buyer and seller with the assistance of an agent.
>> Reserve Price: At an auction, this is the minimum price acceptable to the seller of the property.
>> Settlement of the Property: Settlement of a property is when the balance of the purchase price is
paid to the seller. The buyer receives the keys and becomes the owner of the property.
>> Settlement of the Loan: Settlement of the loan happens with the settlement of a property
purchase. Its when the buyers lender transfers the borrowed funds to the seller or the sellers
mortgage holder.
>> Stamp Duty: A State Government tax based on the purchase price of the property. Each state and
territory has different set of rules and calculations.
>> Strata Property: The Conveyancing (Strata) Act 1961 was introduced to enable the subdivision
of lots into strata and the transfer of these titles. This allowed owners to split a piece of land and
receive their title deed to a unit.
>> Tender: A tender is a very formal sales process, which requires potential buyers to submit a
proposal in response to the request to owners advertised tender.
>> Valuation: A professional opinion of a propertys value.
pg 45

First Home Buyers Guide Finance2 PDF

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Ultimate FIRST

Buying a home can be a daunting task and is one of the biggest

The following guide is an overview of the buying

Ultimate FIRST home buyers Guide:

Ultimate First Home Buyers

Table 1: Pros & Cons of Buying vs. Renting

Understanding The Costs Involved When Considering

Table 2: Calculate the Cost of Renting

What Can you Actually Afford? Dont Guess!

How Much Can you Borrow?

Understanding the Types of Loans Available on the Market

Table 4: Types of Loans Available to First Home Buyers

Why do you Need It? The Benefits

First Home Owner Grant

How to Apply for the FHOG and Additional Grants

Applying For a Home Loan

Choosing the Right Home Lender

What a Lender Can Expect of you

Table 5: Process & Criteria

Your Loan Documents What to Expect!

Understanding the Market

Buying an Off The Plan Home vs. an Established Home

Table 5: Various Buying Methods

The Role of a Buyers Agent

Who are Buyers Agents?

How a Buyers Agent Can Help You Purchase Your Home

Finding a Professional Buyers Agent

Locating Properties For Sale

Planning Your Schedule

Open for Inspection Planner

Attending an Open For Inspection

Things to Bring to an Open For Inspection

Things to Look Out For at an Open For Inspection

Checklist Open For Inspection Buying Checklist

Other Questions & Things to Consider

Ultimate FIRST home buyers Guide:

Ultimate First Home Buyers

Finding Out Reasons For Selling

The Contract of Sale

Professional Building Inspections

Things to Do When Moving In

Ultimate FIRST home buyers Guide:

Should I Buy or Rent?

Table 1: Pros & Cons of Buying vs. Renting

>> You can live in an area that you may not

>> Investing in your own asset.

>> Easier and more cost effective to move

>> Full flexibility to add your own personal

>> Fewer financial commitments.

>> Once your mortgage is paid, your

>> Property maintenance is the

>> Equity is being built as it is an investment

>> In many cases, weekly/monthly

>> The repayments of your loan act as

>> It provides you with flexibility on the

>> You can borrow against equity to further

>> Lower start up costs (bond vs stamp

>> Your money is not being put towards

>> You now have a financial commitment

>> You dont have any control over renewal

>> Your budget might restrict where you

>> You are paying off someone elses asset.