Buying Real Estate with Real Alliance
Understanding the Buying Process
Determine Your Budget & Pre-Approval
Understand your borrowing capacity and secure pre-approval from your lender.
Market Research
Evaluate neighbourhoods, growth trends, and property types to find the right fit.
Property Inspections
Visit homes to assess condition, layout, and features.
Contract Review
Ensure all legal documents are clear, accurate, and compliant.
Auctions & Negotiations
Participate in bidding or negotiate a private sale with confidence.
Deposit & Documentation
Complete required forms and pay the deposit.
Pre-Settlement Inspection
Verify the property’s condition before finalising.
Settlement & Ownership
Finalise the transaction and officially take possession of your property.
Investing in Real Estate: Maximising Your Property’s Value
Real estate is a proven wealth-building strategy. Whether your focus is steady rental income or long-term capital growth, understanding the market is critical.
Key Considerations:
- Cash Flow: Positive cash flow occurs when rental income exceeds expenses, while negative cash flow may offer tax benefits and future growth opportunities.
- Market Cycles: Property markets move in cycles. Strategic timing can help you maximise returns and minimise risk.
- Property Performance: Consider how location, property type, and tenant appeal affect both income and long-term value.
Choosing the Right Location & Strategy
Selecting the right property and area can significantly impact your investment success:
Key Neighbourhood Features:
- Neighbourhood Appeal:Proximity to schools, transport, parks, and shopping.
- Growth Potential: Look for areas with upcoming infrastructure or urban renewal.
- Rental Demand: Target locations with strong tenant demand and low vacancy rates.
- Property Type: Choose properties that are easy to maintain and manage.
- Strata & Title: Understand fees, regulations, and governance for strata properties.
The True Cost of Buying
A successful purchase requires accounting for all associated costs:
- Stamp Duty: Varies by state, a one-off government tax.
- Legal & Conveyancing Fees: Covers contract review, settlement, and transfer.
- Inspections: Building, pest, and pre-purchase checks.
- Loan Costs: Mortgage establishment fees and, if applicable, Lender’s Mortgage Insurance.
- Council & Strata Fees: Ongoing costs associated with property ownership.
- Moving & Relocation Expenses: Include packing, transport, and utility connections.
The Costs of Buying a Property
- Stamp Duty: Varies by state, a one-off government tax.
- Legal & Conveyancing Fees: Covers contract review, settlement, and transfer.
- Inspections: Building, pest, and pre-purchase checks.
- Loan Costs: Mortgage establishment fees and, if applicable, Lender’s Mortgage Insurance.
- Council & Strata Fees: Ongoing costs associated with property ownership.
- Moving & Relocation Expenses: Include packing, transport, and utility connections.
Finding, Researching & Securing the Right Property
Smart buyers do more than browse listings. These steps help ensure you make informed decisions:
How to Conduct Property Research:
- Attend multiple inspections to compare options.
- Ask local agents for insights and off-market opportunities.
- Use online portals to track comparable sales.
- Inspect properties multiple times before making a decision
Ask targeted questions:
- Why is the property being sold?
- How long has it been on the market?
- What are the annual costs?
Methods of Purchasing
There are three primary ways to buy property:
Auction:
Transparent bidding process with immediate results. Requires preparation and financial readiness.
Private Treaty (Negotiated Sale):
Offers room for negotiation and may include conditions, such as finance or inspections.
Expression of Interest (EOI):
Submit a best offer by a set deadline, often used for unique or high-value properties.
What options are there for purchasing a home or unit?
There are a few options for purchasing your ideal house or an investment property, and we’ve highlighted the top three below for you to think about.
Auction
A licensed auctioneer conducts a public sale at an auction where the item is sold to the highest bidder. The vendor and their agent will decide on a reserve price together. They will only accept this as the lowest bid for the property.
The property is “passed in” if the bids fall short of the reserve price, at which point the agent will start negotiations with the top bidder in an effort to reach an agreement on a price. Purchasing a property at an auction has a variety of significant benefits, including the following:
- There is no waiting period, so you obtain a quick result.
- The cost is compared to those paid by other public purchasers.
- Subject to any reserve price, the highest bidder is the winning party.
Private Sale / Treaty
In Australia, this is the most typical method of property purchase. Although the house has a defined asking price, the actual selling price usually differs from the asking price.
The property will be sold after a period of negotiating during which offers are sent back and forth between the seller and the buyer. Are you wondering what benefits do private treaty buyers receive when purchasing a property? So, here they are;
- You may have more time to make a decision, therefore there is less emotion than an auction
- Greater flexibility for negotiation. A contract can be signed subject to certain conditions being met, such as a building inspection, finance approval, repairs to the property etc.
- In most cases, you have a cooling-off period in case your circumstances change
- You do not have to pay for any report until you have signed an agreement to buy the property
- There is more certainty regarding the price than at auction
Tender or Expression of Interest
Buyers are asked to submit their best and last offer to acquire a property by a certain closing date and time during an expression of interest or tender sales campaign.
The seller will next consider the offers after consulting with their agent, as is customary. If a reasonable offer is not made, the property may be sold using a different strategy or another Expression of Interest may be requested.
The costliest or unusual properties are best suited for this technique of sale. If you are not familiar with the benefits of purchasing a property through an expression of interest or tender, here are some;
- By the competitive nature of the offers, reveals the actual worth of the property.
- The deadline instils a sense of urgency.
- The sale’s private nature makes it possible to keep the selling price under wraps.
- Purchasers may covertly submit offers
Questions to Ask Your Sales Agent
If you are new to buying property, it’s important to ask the right questions to make an informed decision. Consider asking your agent:
- How long has the property been on the market?
- Why is the owner selling?
- Have there been recent renovations?
- Are the sellers open to negotiation?
- Can you provide recent comparable sales?
- What are the council rates and strata fees?
- Are there any restrictions or upcoming zoning changes?
- Are bids accepted prior to auction?
- Have any offers been made, and at what price?
Due Diligence
- Schedule professional building and pest inspections to uncover hidden issues.
- Obtain a strata report for apartments to check fees and compliance.
- Have your sales contract reviewed by a conveyancer or attorney to ensure it is accurate and protects your interests.
The settlement of property
Sales agreement
A contract of sale is necessary since purchasing real estate is a legal transaction, protecting both the buyer and the seller. This document includes all pertinent information pertaining to the sale of the property. Subject to any cooling-off time and other conditions, the buyer and seller are obligated to comply with the contract once they have both signed it and exchanged it between them.
Making plans for settlement
The period of time between the Contract of Sale’s execution and settlement day can vary according to the nature of the deal and the property. The average duration, however, is often six weeks, and this period of time gives the purchasers enough time to arrange their money and/or the sellers of the property enough time to fulfil any particular requirements that were mentioned in the contract of sale.
Pre-settlement inspection
The prospective buyer will get a chance to examine the home as settlement day draws near. If you are buying a property and follow this step, you can ensure that nothing suspicious has occurred since you have signed the contract with the seller. It also enables the buyer to verify that any outstanding tasks specified in the contract have been accomplished. And our real estate agent will help you in this process.
Finalising transfer document
The settlement team will check that all contract requirements have been met on settlement day. The sales agent will transfer the deposit that has been kept in trust after receiving authorisation from the buyer’s lender to pay the remaining balance of the purchase money. The legal counsel for the sale will check if all the required bills and dues are paid. The transfer documentation will be completed and sent to the land registration office and if all goes according to plan, the new owner will take the legal ownership of the property.
Sales agreement
A contract of sale is necessary since purchasing real estate is a legal transaction, protecting both the buyer and the seller. This document includes all pertinent information pertaining to the sale of the property. Subject to any cooling-off time and other conditions, the buyer and seller are obligated to comply with the contract once they have both signed it and exchanged it between them.
Making plans for settlement
The period of time between the Contract of Sale’s execution and settlement day can vary according to the nature of the deal and the property. The average duration, however, is often six weeks, and this period of time gives the purchasers enough time to arrange their money and/or the sellers of the property enough time to fulfil any particular requirements that were mentioned in the contract of sale.
Pre-settlement inspection
The prospective buyer will get a chance to examine the home as settlement day draws near. If you are buying a property and follow this step, you can ensure that nothing suspicious has occurred since you have signed the contract with the seller. It also enables the buyer to verify that any outstanding tasks specified in the contract have been accomplished. And our real estate agent will help you in this process.
Finalising transfer document
The settlement team will check that all contract requirements have been met on settlement day. The sales agent will transfer the deposit that has been kept in trust after receiving authorisation from the buyer’s lender to pay the remaining balance of the purchase money. The legal counsel for the sale will check if all the required bills and dues are paid. The transfer documentation will be completed and sent to the land registration office and if all goes according to plan, the new owner will take the legal ownership of the property.
The settlement of property
Once you have made the decision to buy a new home, knowing how to research the market and what to look for in a neighbourhood are key.
Conveyancing and legal fees
Purchasing a house is a legal procedure, therefore it’s crucial to have professionals guide you through the process. They will examine the agreement, discuss amendments, and set up the formal transfer of ownership.
Inspections before purchase
Before you sign the contract, it is strongly advised that you get the property inspected for both building issues and insect problems. It’s crucial to be aware of any structural problems or pests. Get a strata report as well if you are purchasing an apartment.
Stamp duty
It is highly recommended you get both building and pest inspections on the property before you sign the contract. Ensuring you are aware of any structural issues or infestations is important. If you are buying an apartment, you should also get a strata report.
Moving charges
You will need to budget for the price of hiring professional movers to assist you, unless you have a few friends who are ready to offer a hand on moving day. You may either go with the full-service option and have them assist you with packing and unpacking in addition to hiring a truck and movers.
Finding & Securing the Right Property
House-hunting takes time, but knowing what to look for makes the process smoother.
How to Conduct Property Research:
A nationwide programme called the First Property Owner Grant (FHOG) was created to assist first-time homeowners in reducing the impact of the GST while purchasing or constructing a home. It is a one-time payment for qualified first-time homebuyers who buy or construct a house to live in.
Although it is a nationwide programme, the terms differ across the nation since it is sponsored regionally by the state and territorial governments. You can visit their website to learn more about the FHOG in your state or territory or you can talk to one of our Real Alliance real estate agents to get to know more about this grant. But generally speaking, you could be qualified if you are:
- An Australian citizen or permanent resident who has never received the grant previously
- Who is purchasing a new or existing house on their own.
- You intend to use the home as your primary residence.
- You submit your grant application within a year after buying your first home.
Want to Know More
Once you have made the decision to buy a new home, knowing how to research the market and what to look for in a neighbourhood are key.
Know more about home buying process
You can get to know in-depth tips from our sales team on how to look for, locate, and negotiate or bid successfully on a property. This guide is your go-to source for efficiently buying a home.
First selling, then buying
Knowing how much your present property is really worth and how to increase its worth can help you understand how much you can afford to spend on your future home.
Start your property search
There is a house for every lifestyle among the many properties we have up for sale. You can talk to one of our agents to get help finding the right property for you to call home.
Our checklists for open for inspection
Simply cross out the various aspects as you walk around the house to gain a full understanding of whether or not this is the right property for you. Never show up unprepared for a house inspection.
Ready to Talk?
Whether you’re looking to Buy or Rent, let’s connect.