BUYING A HOUSE IN PERTH

So you are looking at buying a house in Perth?

Whether you are, an Overseas Investor, first home buyer, investment buyer or upgrading, the purchase of a property is a big step.

	BUYING PROPERTY
	The Buying Process
	Real Estate Agent
	Sale By Owner
	Home Buyers Agent
	First Home Buyer
	Purchase at Auction
	Purchasing Costs
	Land Sales
	Overseas Investor
	How much can I borrow

For those of you that are on the move to Perth you may find that some things are done a little different in Perth, so I have given you a few details below to get you started:

Remember, when buying house Perth, the Real Estate Agent is obligated to the Seller… not the buyer.

Another important thing to remember is that the offer forms part of the Contract so be sure you want to buy the Perth house before you put in an offer.

HOW MUCH CAN I BORROW?

I would recommend that you find out how much you can borrow by speaking to a Mortgage Broker. The benefit of using a Mortgage Broker to organise your finance rather that going directly to a bank is:-

• A mortgage broker will provide you with a no obligation consultation. They receive a commission from the bank on settlement on your loan. Which, is not passed on to you in any way if you went directly to the lender you would get the same.

• They will have access to a majority of the banks and financial institutions. You would be surprised how the lending criteria differs between lenders, it can sometimes make $000's dollars difference as to what different lenders will let you borrow.

• Lenders have different assessment policies. Some lenders will allow you to take out a home loan even if you are still on probation. Your Mortgage Broker would know the lenders to approach.

• Because they have access to a wide range of lenders and products they can assist you in determining how much you can borrow and identifying which type of loan will best suit your needs and objectives.

• Mortgage Brokers in Western Australia are regulated and have to obtain related qualifications and be licensed

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THE OFFER FORMS PART OF THE CONTRACT

It is usual in Western Australia to purchase a house via a method known as 'Offer and Acceptance'.

This consists of the Offer and Acceptance form, the "O&A" and the joint form of General Conditions for the Sale of Land, the "General Conditions".

The O&A can be amended to include any special conditions that meet the needs of the seller and/or the buyer.

REMEMBER If you put an offer in on a house in Perth and it is accepted then you are committed to complete the purchase, unless the seller does not meet a condition set out in the contract.

ELEMENTS OF THE CONTRACT

• Your name as the buyer
  
• the date the offer is made
  
• the address of the property
  
• details of the certificate of title for the property
  
• the purchase price you are offering
  
• details of any fixture & fittings to be included as part of the sale (these are no longer free from stamp duty)
  
• the amount of deposit to be paid on acceptance of the offer. (no more than 10% of the purchase price and is often less).
  
• the amount of finance and where you intend to get the finance (eg. your finance broker)

  
  

• the time frame in which the finance approval must be obtained ,(this time frame is commonly 21 days but it can be a longer time frame, try to avoid it being any shorter).
  
• any special conditions you want to include as part of the offer and the time frame for these to be cleared.
  
• the settlement date (it is common for this to be 28 days after finance approval) NB: It is important that you allow enough time for Settlement. If your purchase does not settle in time or within 3 working days of the settlement date you will be liable to pay penalty costs. Details of the costs will be set out in the contract. Such costs can be expensive
  
• the settlement agent both parties propose to use.

PURCHASE CONDITIONS

When buying a house Perth it is important that you include purchasing conditions that are suitable to you when you put in an offer.

You can make a contract subject to almost anything. BUT REMEMBER the other party must agree to the conditions so you need to be realistic with the conditions you set.

Some typical conditions include:

• Subject to finance, this is generally 21 days but it can be a shorter or longer period;
  
• Subject to a satisfactory inspection;
  
• Subject to a satisfactory termite inspection ;
  
• Subject to the chattels, fixtures and fittings as seen on the date of inspection;
  
• Subject to all electrical and plumbing items to be in good working order prior to settlement;
  
• Subject to all council and regulatory approvals on all building and renovations;
  
• Subject to builder’s warranty insurance (for new houses and renovations over $12,000 such as a pool or pergola);
  
• Subject to approval by the Foreign Investment Review Board (if an overseas buyer).
  
• subject to the sale of another property

In Western Australia, once all of the conditions of the contract are satisfied, the contract is binding. You need to BE AWARE of this, as it is typically very difficult to be relinquished.

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SETTLEMENT

Once the contract for buying your house Perth has been finalised you will be dealing with both the Real Estate Agent and your Settlement Agent. A Settlement Agent is responsible for legally transferring property ownership from one party to another. It is important that you have a good settlement agent on your side to ensure that everything is done competently.

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INSURANCE

There are several insurance issues that you need to consider:

• Builder’s Warranty Insurance (if purchasing a new property or any property improvements over $12,000, such as a pool or pergola);


• General Insurance of the property… lLenders will require that you have property insurance prior to settlement;


• Lenders’ Mortgage Insurance… this may be required by some lenders, depending on how much you are borrowing and at what ratio to the value of the house (Loan to Value Ratio).

TALK TO A MORTGAGE CONSULTANT

If you are buying house Perth or will be looking to buy a house Perth in the future then the chances are you will need to organise a mortgage.

So if you are looking to buy a house Perth and would like to be contacted by a qualified mortgage broker to discuss your mortgage options then complete the enquiry form below.

DISCLAIMER

The Buying Process, Real Estate Agent,Perth Property Market, Purchase at Auction, Costs Related to Home Purchase, Land Sales, Overseas Investor, Help with your Home Loan

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