1️⃣ Prepare Your Finances
- Determine your budget: Consider your monthly income, debts, and how much you can realistically afford to borrow.
Tip: Use the 30% rule - mortgage repayments shouldn’t exceed 30% of your gross income. - Get pre-approved for a mortgage: This gives you a clear idea of how much you can borrow and strengthens your position as a buyer.
Why? Sellers take offers more seriously with pre-approval. - Save for a deposit: A larger deposit can potentially lead to lower interest rates and a faster purchase.
Tip: Aim for 20% to avoid Lender’s Mortgage Insurance (LMI). - Consider potential stamp duty costs: The Queensland Revenue Office provides details on calculating this duty.
Queensland Stamp Duty Calculator - Calculate your total buying costs: Include legal fees, inspections, and other expenses.
2️⃣ Find a Right Property
- Define your needs and wants: What features are essential, and what would be nice to have?
Example: 3 bedrooms (need) vs. pool (want). - Research neighborhoods: Consider factors like schools, amenities, and proximity to work.
Check: Queensland Crime Map | School Zones - Work with a real estate agent: They can help you find properties that meet your criteria.
- Attend open houses: This is a great way to get a feel for different properties and neighborhoods.
- Consult with a conveyancer: They will handle the legal aspects of the transaction, including contract review and title searches.
3️⃣ Make an Offer
- Have a clear understanding of the market value: Research similar properties to determine a fair offer.
Compare recent sales on realestate.com.au. - Prepare a written offer: Include your proposed price, any conditions, and a timeframe for the seller's response.
Tip: Conditions to include - Finance approval, Building/pest inspection, Settlement period, etc.? - Negotiate with the seller: Be prepared to discuss your offer and potentially make counteroffers.
4️⃣ Proceed with the Legal and Financial Process
- Review the contract of sale with your conveyancer: Ensure you understand the terms and conditions.
Key clauses: Cooling-off period (5 days), termination rights. - Conduct property inspections: Get building and pest inspections to assess the property's condition.
Never skip the pest inspection (termites are common in QLD!). - Secure home insurance: Risk passes to the buyer at 5pm on the first business day after signing the contract, says the Real Estate Institute of Queensland.
Required from contract signing (REIQ Rule). - Finalize your mortgage application: Submit all required documents and ensure your loan is approved.
- Pay the deposit: This secures the property while the legal and financial processes are underway.
5️⃣ Settlement & Move-In
- Arrange for settlement: This involves transferring funds and signing the transfer of ownership.
Final checks - Pre-settlement inspection (ensure no damage since signing). - Receive keys to your new home:
Congratulations! Keys in hand – time to celebrate!
