How to win at auction

Buying a property in Sydney can be both exciting and exhausting. There are many things you need to consider when purchasing your dream home. Here are some tips that will help you with the process.

Know Your Limit

You know yourself better than anyone else. The first step to purchasing a Sydney property is to ask yourself what you want. For example:

• Where do you want to live?
• What facilities, such as schools, you want to have in your neighbourhood? 
• What features do you want to have in your property? Do you want two bedrooms or do you want three?

Know Your Budget

Now that you know what you want, you need to find out what you can afford. Take a look at your financial situation, including your employment, debts and future plans, and determine the amount of monthly payment you can afford. You have to budget for emergency expenses because life is full of surprises, including unpleasant ones.

Assess the Purchasing Costs

When you buy a Sydney property, you not only have to pay the final price of the property, but you also have to pay other fees that are incurred when buying the property. Some of these extra costs and fees are:

• Fees for obtaining a home loan;
• Stamp duty, GST and fire services property levy;
• Inspection fees;
• Legal fees;
• Moving fees.

Once you become the owner of the property, you’ll also have certain ongoing costs, such as:

• Maintenance fees;
• Land tax and property rates;
• Home insurance.

If you’re a first homebuyer, you may be eligible for first home buyer grant. You should talk to a specialist property lawyer to find out if you are eligible.

Do Your Due Diligence

Check out the value of properties in areas that you want to live in. You can do so online or speak to real estate agents. You can also attend real estate auctions and check out the auction results.

Research Home Loans

When purchasing a property in Sydney, you’ll likely need to take out a home loan. You should calculate the amount you need to borrow and get an idea of what the monthly repayment will be. You can talk to financial institutions and mortgage brokers to find out all the fees that you may need to pay. Before you sign a loan contract, it’s best to consult a property lawyer to go through the contract terms in detail.

Inspect the Property

You should visit the property you’re interested in buying and check out the neighbourhood. You’ll likely need to visit the property several times in order to get a good sense of the place. You need to make sure that the neighbourhood can meet your basic requirements. For example, there are good schools for your children.

In addition, when you buy a property, you’re buying it “as is”. You need to make sure that the property doesn’t show signs of structural problems. Before you sign a contract for sale, you should do a thorough inspection of the property. If you don’t have the time or expertise to do so, it’s recommended that you hire a professional inspector to perform the inspection for you, as some problems may not be obvious to the untrained eyes.

Speak to the Local Council

If the property you’re buying has been renovated, you should check with the local council to make sure that proper building permits were obtained for the work done. You’ll likely be responsible for any illegal work done on the property once you sign the contract for sale. 

Consult a Property Lawyer

The contract for sale is a complicated legal document. Before you sign it, you should go through it with a specialist property lawyer to make sure that all the terms are in your best interest. 

DISCLAIMER:  The content of this publication does not constitute legal advice and is intended only to provide a summary and general overview.   We do not guarantee that it is current.  You should seek specialist legal advice or other professional advice about your specific circumstances.  Your access to this publication is not intended to create nor does it create a solicitor-client relationship between you and Unified Lawyers.