Moving or relocation? How to buy a home in Perth - Western Australia
There are a number of costs in buying a home so make sure that you know what you will be expected to pay before you start. Allow for the fact that in Australia the government levies a tax called Stamp Duty. The stamp duty varies depending on the price of the home you choose to buy. There are some exceptions and you may be entitled to avoid stamp duty if you are a first home buyer or are buying vacant land. If you are a permanent resident or citizen and have not bought a home before you may also be entitled to a grant from the state called the First Home Owner’s Grant which will allow you an extra $7000. Allow for your deposit, mortgage repayments, local authority rates, charges for water, sewerage and drainage and for the removals costs to get you settled in to your new home.
Make sure you do your homework. When you look at the various suburbs list what they offer: are there lots of renovations going on suggesting an up and coming suburb, look at geographical area, check proximity to transport and ease of getting to work, keep records of sales in the area so that you can compare like for like especially looking at land size. Once you have fallen in love with a property which you think is appropriate and within price range check the property out at weekends and late in the evening to see what the neighbours are like. You might decide to engage a professional valuer. They will ascertain whether there is anything in planning which will affect the value of your property as well as comparing data which will determine the worth of the property. Look for a registered valuer on the database of the the Valuers Registration Board or the Australian Property Institute. You should consider to have a building inspection, termite and pest inspection and if it is an apartment a strata records report.
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.
The two ways of buying a home in WA are by offer and acceptance or by auction. The auction process a fair one as the buying process is transparent but remember there is no cooling off period as there is for a purchase through offer and acceptance. Once you have bought at auction you can not then find a reason for changing your mind: you must proceed. Before the auction ask the agent for the contract of sale and use a solicitor to examine this for you.. As the auction starts, the auctioneer reads out the terms of the auction. It is not unusual for the auctioneer will kick start with a vendor bid which is usually below the reserve price . Should the auction not reach the reserve price and you were the highest bidder you will be able to negotiate with the agent. If you buy at the auction or negotiate afterwards you will be asked to provide a deposit by bank cheque or personal cheque . The deposit will be 10%..
If you are choosing a home which is to be sold by offer and acceptance 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 becomes unconditional and a legally binding document when both you and the vendors sign it. You will then be asked to 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 typically 28 days later and this is when you will pay everything in full. You will need to insure your property from this date. .