T: 07 4052 0750 | A: Level 1, 15 Spence Street, Cairns QLD 4870 | W: prestonfinance.com.au

YOUR 6-STEP GUIDE TO

BUYING PROPERTY

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 1

STEP 1

KNOW HOW MUCH YOU CAN BORROW

Knowing how much you need for a deposit and how much you can borrow gives you the confidence to make a calculated offer on your chosen property.

Getting pre-approval provides you with guidance on borrowing amounts in a more formal way. Usually, your bank or lender will provide an unconditional approval once they receive updated pay information and the valuation of the property you are buying.

Getting pre-approval can also reduce stress at the point you make an offer on a property.

Save as much as you can for a deposit. This will not only reduce the amount you need to borrow, but also minimise the total interest you have to pay.

For example: If you borrow $400,000 at a fixed rate of 4.5%, over 20 years, your total repayments will be $607,343. If you can reduce the borrowing amount by $25,000, you’ll save $38,049 in repayments.

Whether you’re buying a family home or an investment property, you’ll want to know how much you’ll realistically need to spend. The potential future value of your property is also important to consider.

Review sold prices online or through real estate agents (you can get data going back a few years) to get a good understanding of how much similar properties in the area sell for.

Visit open houses and attend auctions, even for properties that may be a bit below or above your price range – this will give you a better sense of what you’ll need to spend than simply looking at real estate ads.

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 2

STEP 2

CHOOSE THE RIGHT PROPERTY

A mortgage broker can give you a property profile report, at no cost to you. These reports show estimated value, comparable listings, and local market information on properties of interest to you.

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 3

STEP 3

THE CONTRACT

Once you’ve found a property you’re interested in, ask the real estate agent for a copy of the contract of sale.

This legal document should be given to your conveyancer to check before you agree to it. The conveyancer can also advise you on the contract terms and conditions, such as the cooling-off period, and when the deposit is due.

Remember - once the contract has been signed by both parties, and the cooling off period has passed, the contract is legally binding, so make sure you fully understand what you’re committing to.

Make sure you know what comes with the property! There may be inclusions or exclusions as part of the contract of sale, and it’s important to clarify these. For example, air-conditioning systems, or pool and spa equipment, may be excluded from the sale.

For properties sold by private treaty, you need to make your offer to the listing real estate agent. Properties being auctioned are often open to offers prior to the auction date.

When you buy at auction, you usually need to pay a deposit of 10% immediately, so be prepared.

Once your offer is accepted, the next step is to sign the contract of sale. Private treaty sales give you a cooling-off period (usually 5 working days). You can ter-minate the contract within this period, and if you have paid a deposit, it’s fully refundable (though the seller may charge you a termination penalty).

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 4

STEP 4

MAKE AN OFFER

If the property you want is being sold at auction, it is important that you have pre-approval finance.

NOTEThe contract for an auctioned property is unconditional, and there is no cooling-off period.

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 5

STEP 5

THE CONVEYANCING PROCESS

Conveyancing is the process of transferring ownership (“title”) of the property to you. The conveyancing process begins when both you and the seller have signed the contract of sale.

Engaging a conveyancer will help you ensure that you meet all of your legal obligations, and that your rights are protected during the transaction.

If you need finance to complete the contract, you will be given a certain period of time, stated in the contract of sale, to arrange it. It’s critical that you meet this deadline.

The contract is generally conditional upon the property passing pest and building inspections, but you must complete them within the timeframes stated in the contract. Your conveyancer can arrange these inspections on your behalf.

Other things you will need to do to complete the sale include conducting the relevant council and other government searches.

In Queensland, you’re liable for the property from the first business day after you sign a sale contract, so it’s essential that you have an insurance cover note to protect you from any unexpected events or claims. Most insurers will arrange this for you quickly and easily over the phone.

Settlement is the date on which everything is finalised.

The process can be daunting, especially for first-time buyers. Having a conveyancer acting on your behalf will reduce the likelihood of complications. Your conveyancer will manage settlement for you, including: • contacting your bank to book the settlement,

confirm arrangements for payment, and provide the necessary financial details

• preparing the transfer documents (to transfer your name onto the property title as the new owner)

• preparing and lodging the paperwork to pay the transfer duty to the Office of State Revenue.

Once settlement is completed, the property is yours! The agent will release the keys to you at this stage.

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 6

STEP 6

SETTLEMENT

Arrange a pre-settlement inspection of the property with the real estate agent to ensure that it’s still in the same condition as when you signed the contract. In particular, check that anything you specifically included in your contract is in fact there.

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 7

CAIRNS HOME MORTGAGE BROKERS

Cairns Home Mortgage Brokers – a division of Preston Finance & Insurance – helps Queenslanders negotiate competitive home loans and save thousands on their repayments costs through refinancing.

We’ll help you to:• identify your borrowing capacity• find the best home loan deal at competitive rates• negotiate favourable terms for your Lenders

Mortgage Insurance.

Call Lauren today to secure your finance and insurance, and reduce your borrowing costs.

T: 07 4052 0750M: 0434 041 169E: leakins@prestonfinance.com.auW: cairnshomemortgagebrokers.com.au

CAIRNS CONVEYANCING SOLICITORS

More than 10,000 home buyers have trusted us to help them with their first (or second or third…) property in and around Cairns. Let us help you too.

Contact us today for your free contract review, or for an obligation-free conveyancing quote.

T: 07 4052 0700 W: cairnsconveyancingsolicitor.com.au

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 8

LOOKING FOR A LOCAL CONVEYANCER?

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 9

NOTES...

© Preston Finance & Insurance | Your 6-Step Guide to Buying Property 10

NOTES...

T: 07 4052 0750 | A: Level 1, 15 Spence Street, Cairns QLD 4870 | W: prestonfinance.com.au

The advice contained in this document has been prepared without consideration of your objectives, financial situation, personal circumstances or individual needs. Whilst care has been taken to ensure the accuracy of the information contained in this booklet, it neither

represents nor is intended to be legal or taxation advice. Please consider the appropriateness of this information before acting on any advice from this booklet. Preston Finance &

Insurance aims to understand your circumstances and requirements to provide you with a loan and other products that are suitable to your needs. This booklet is subject to copyright

and must not be reproduced in any format without the express permission of its author. © 2017.

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