Looking at Purchasing a New Home?
Are you a First Home Buyer? Looking at cracking the property market? Unfortunately, without an in-depth knowledge of the industry, it can be difficult navigating the purchase process by yourself.
This is why we’ve detailed a few step-by-step tips and tricks that will help you along the way, ensuring you walk away with your dream property
Initial Inspection, Contract of Sale and Section 32
It is always a great idea to ensure a Conveyancer or Legal Practioner reviews the Contract of Sale & Section 32 prior to execution.
A Conveyancer or Legal Practitioner can bring to light any issues with the property that might be displayed in the contract and any concerns with any conditions that are stipulated in the contract. For example, if you are looking at undertaking renovations or demolishing the property will the council allow this? Or, is the property heritage listed, restricting you from completing any desired works?
You can refer to our Conveyancing/Property Law explained article here.
Buying at an Auction OR Privately
Should you purchase at an Auction you are bound by your contract, therefore if you are not happy with the property and/or terms in the contract you might not be able to rescind.
Auction purchases are locked in a contract that cannot be subject to finance and/or building/pest inspections.
Therefore, we recommend that any inspections and queries in relation to the property/contract should be undertaken PRIOR to the auction taking place.
Should you purchase the property privately, a three-day cooling-off period is applicable. Therefore, you have three days to notify the Vendor in writing should you not want to proceed and your deposit will be refunded (with the exception of 0.02% of your contract price or $100.00).
By purchasing a property privately you have the option of having your contract subject to terms such as finance and/or a building/pest inspections.
Subject to Finance AND/OR a Building/Pest Inspection
Should you wish to make your purchase subject to finance, you, as a purchaser will have the option to ensure your finance is approved before you continue with the purchase.
If your finance is not Unconditionally approved by the date specified in the agreement, you can write to the Vendor and rescind from the contract with no repercussions (you must, however, provide a letter from your mortgage provider stating that your finance was not approved). Your deposit will be refunded, apart from the 0.02% or $100.00 fee.
We recommend that you have a qualified professional complete a building and pest inspection for any property that you intend to purchase.
Should you purchase privately, you have the ability to purchase the property subject to these conditions. If these inspections are undertaken and the property is seen to have serious building defects or damage due to pests you may also rescind granted the inspection is undertaken and the Vendor notified prior to the specified condition date.
First Home Buyers
From 01 July 2017, the Victorian Government made changes to grants and stamp duty discounts for First Home Buyers.
Should you purchase a home as a First Home Buyer for $600,000.00 or less you will pay no stamp duty. If you purchase for over $600,000.00 but less than $750,000.00 you will receive a discount on your stamp duty.
To be eligible for the First Home Owners Grant you must be purchasing a newly built property or have intentions to build (for purchasers buying land only).
Stamp Duty & Off The Plan Purchases
From 01 July 2017, purchasers entering into an off the plan Contract of Sale for the purchase of an investment property will be ineligible for any discount and will be required to pay full stamp duty on the contract price.
To be eligible for the Off the Plan stamp duty discount you must meet the requirements of a First Home Buyer and/or intend to acquire the property as your Principal Place of Residence.
If you are purchasing as a first home buyer and your purchase price is under $600,000.00 no stamp duty will be applicable, concessions will be applicable if you are a first home buyer purchasing for more than $600,000.00 but less than $750,000.00.
Contact Argent for Any Property related Question
If you are not a First Home Buyer you may still be eligible for the off the plan stamp duty discount if you are purchasing the property for $550,000 or less.
If you need assistance with any of the above or need a professional conveyancer or property lawyer to assist with your purchase process, contact Argent Law today.