THINGS YOU NEED TO KNOW BEFORE BUYING A HOME IN QLD
1.HOW MUCH DEPOSIT DO YOU NEED?: This will of course depend on the price range of the area you’re looking in and the size of the house you want. While you might be able to buy with a 5% deposit, having 20% saved will save you the extra expense of Lender’s Mortgage insurance.
2.GET YOUR FINANCE PRE-APPROVAL IN PLACE BEFORE MAKING AN OFFER: While this isn’t a guarantee of a loan, you obviously need to know if and how much you can afford to borrow. No point in going to all the stress of finding the perfect home only to find that you have no chance of getting enough finance to buy. See your bank or finance broker first.
3.WHAT EXTRA COSTS MIGHT THERE BE?: As already mentioned, if your deposit is less than 20% you may be up for Lender’s Mortgage insurance. There will be loan establishment fees, building & pest inspections, solicitor or conveyancing fees to prepare and execute the contract as well as stamp duty after the sale.
4.ARE THERE ANY GRANTS AVAILABLE?: Currently there is the HomeBuilder Grant for $25,000 (although this will reduce to $15,000 as from 1st January 2021) as well as the First Home Owner’s Grant of $15,000. There is also the Regional Home Building Boost Grant which has been extended to 31st March 2021. Eligibility criteria apply to all of them but worth applying for if you qualify.
5.MAKE SURE YOU TALK TO YOUR SOLICITOR: Buying a home is probably the biggest purchase you’ll ever make, so you need to be sure you understand what you’re getting into. Chances are you haven’t had a lot of experience with contracts so make sure you have a solicitor or conveyancer handle the contract and execute the settlement.
6.HOW TO BUY?: The 3 main ways to buy a house in Queensland are by Private Treaty, Auction or Tender. Make sure you’re educated and comfortable with the different styles as there are benefits and pitfalls with each.
7.DUE DILIGENCE: If you’ve decided on a property, make sure you do your due diligence to make sure everything is as it should be. Check with council that everything has been certified and no renovations have been done unprofessionally, boundaries are where you expect them to be and there are no hidden issues.
8.BUILDING & PEST INSPECTIONS ARE IMPORTANT: An established house may look sound, but hidden defects and potential pest issues like termites can turn into extremely expensive after-purchase dramas. So make sure any contract you enter into has a clause allowing you to have qualified building & pest inspectors do a thorough check of the house before you settle.
9.CHECK THE AMENITIES OF THE AREAS YOU’RE LOOKING IN: Price savings by living in the outer areas may not stack up as much as you’d like when you have to take into consideration travelling costs to get to work, school or recreation. And if you’re looking at a particular school, make sure you check the catchment areas. Weigh up the pro’s and con’s of where you’re considering and make sure the sums add up.
10.DO YOUR RESEARCH: Watch the property market, subscribe to email alerts from real estate websites, let real estate agents know that you’re looking and be flexible and realistic with your expectations.