First steps to buy a home in Sydney
Before you buy a home it is extremely important to do your homework. Research the Sydney suburbs and what they offer first, select your preferred suburbs and then make sure you know what other homes in the area are worth and what you may need to buy for something similar. Make a list showing land size, special features, direction of property, school zone, nearness to transport and what the other homes in the street are like. Once you have chosen a property which you think is the sort of home you would like to live in then you might wish to engage a professional valuer who will check for you whether there is anything in planning which decrease the value of your property as well as comparing data which will indicate the 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. You may also wish to have a pre-purchase property inspection, pest inspection and if it is an apartment a strata records inspection.
You will need to arrange the necessary finance. You should allow for 10% of the purchase price for the deposit which will be paid immediately after the auction.
Buying in Sydney: treaty vs auctionThe two ways of buying a home in Sydney NSW are by private treaty or by auction. The auction process a fair 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 treaty. 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 .Before the beginning of the auction you must register with the agent and get a bidderís number. You will need proof of ID to do this. 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%..
Sold by Private treaty is a different processIf you are choosing a home in Sydney which is to be sold by private treaty then there is a different process. If you make an offer you will be asked to pay a part 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 five day cooling off period but you if you change your mind about buying the property then you will need to pay the vendor 0.25% of the sale price.
Settlement day is usually six weeks later and this is when you will pay everything in full. You will need to insure your property from this date.