How to buy a home in Canberra and the ACT when moving
Where to start? Look at many different suburbs and see what they offer. When you have chosen suburbs which have particular appeal then study what homes in that area are selling for. It is worth making comparisons based on land size, special features, school zone, direction of property, transport options and the other homes in the street. When you have decided on a home you would like to live in then you might wish to engage an independent valuer who will check for you whether there is anything in planning which may devalue your property as well as data comparison which will indicate the true worth of the property. You should be able to find a registered valuer on the database of the the Valuers Registration Board or the Australian Property Institute. In ACT the owner arranges a pre-purchase property inspection and you can buy this.
Finance is the next step. You should allow for usually 10% of the purchase price for the deposit which will be paid immediately after the auction or when you have signed the contract. You will also need to allow for stamp duty, legal fees, mortgage fees, reimbursement of property inspection fees, general rates and water rates, moving costs and then insuring your home. If you are buying a home that is part of a body corporate then you will also need to allow for body corporate fees as well.
In ACT you will usually buy a home by private sale or by auction. The auction process a good one as everyone can see how the bidding is going but remember there is no cooling off period as there is for a purchase through private sale. It is recommended to go along to a few auctions beforehand to see what the process is. Be very sure that you have a figure in mind before the start of the auction and stick to it as this is the figure you have come up with after working out your finances. Once you have won the auction you can not then find a reason for not proceeding: you must proceed. Before the auction ask the agent for the contract of sale and ask a solicitor to check this for you . As the auction commences, the auctioneer will read out the terms of the auction. Occasionally the auctioneer will begin with a vendor bid which is usually below the reserve price in order to begin or improve the auction. Should the auction fail to reach the reserve price yet you were the highest bidder you will be able to negotiate with the agent. If you win the auction or negotiate afterwards you will be asked to provide a deposit which can be paid by bank cheque or personal cheque . The deposit will be 10%.
If you are choosing a home which is to be sold by private sale then there is a different process. If you make an offer you will be asked to pay a deposit which is refunded if the vendors do not agree to your offer. The contract of sale becomes a legally binding document when both you and the vendors sign the contract. You must then pay your deposit of 10% and you will then have a one week cooling off period.
Settlement day is usually four to six weeks after exchange of contracts and this is when you will pay everything in full. Remember to insure your property from this date.