As a prospective home buyer, you might be dreaming about buying a house in Sydney, one of the world’s most vibrant and captivating cities.
But the process can seem daunting, particularly if you are a first-timer. This guide is here to help you understand the process of buying real estate in Sydney, New South Wales (NSW), with easy-to-follow steps for buying a house. Let’s get you ready for this exciting journey!
Know What You Can Afford: The Start of Your House-Buying Journey
Before you embark on your journey to buy a house in Sydney, you need to determine how much you can afford.
This is a crucial step because it narrows down the property market to what is within your reach financially. Engage a lender and find out how much you can borrow to finance your property purchase.
Ensure that your budget also caters to other costs such as conveyancing fees, stamp duty, and building and pest inspection costs.
The amount of stamp duty you’re required to pay will depend on the purchase price of the house in NSW and your eligibility for any concessions or exemptions.
Start Looking for Properties: Engaging a Real Estate Agent
Now that you have a budget, the exciting part of your journey to buy a house in Sydney begins – searching for your dream home.
During this step, consider engaging a local real estate agent who can guide you through the process and help you find a house that meets your requirements.
They can provide valuable insights into different Sydney suburbs, property features, and price trends. If you’re targeting Sydney’s safest suburbs or the best suburbs in Sydney for families, their advice will be crucial.
While looking for properties, make a checklist of the must-have features and the ones you’re willing to compromise on.
When you find a property you love, engage a solicitor or conveyancer to review the contract of sale. This ensures that the terms and conditions of the sale are favourable and legally binding.
Make an Offer: Navigating Property Purchase
Making an offer on a property is a critical step in the process of buying a house in Sydney. When you’ve found a property that you want to buy, your real estate agent can guide you on the right price to offer.
Once your offer is accepted by the seller, it’s time to move on to the next steps – exchanging contracts and paying a deposit.
It’s essential to conduct a pest and building inspection before making an offer. The inspection report will uncover any potential issues with the property’s condition that could affect the value of the property or lead to costly repairs in the future.
Exchange Contracts: Understanding the Legal Aspect of Buying Property
After your offer is accepted, you will exchange contracts with the seller. This involves both parties signing a copy of the sale contract.
At this point, it’s important to have your solicitor or conveyancer review the contract to ensure the terms are agreeable.
In NSW, a five day cooling off period applies after contracts are exchanged during a private treaty sale. This means you can withdraw from the sale if you encounter significant issues, but you may forfeit 0.25% of the sale price.
Pay a Deposit: Confirming Your Commitment
Upon exchange of contracts, you are required to pay a deposit. The deposit is usually 10% of the purchase price and it signals your commitment to proceed with the property transaction. Your solicitor or conveyancer will usually hold this in trust until settlement.
Remember to arrange for building and contents insurance at this stage. Once contracts are exchanged, the property is your responsibility and it’s important to protect your investment.
Complete the Buying Process: Welcoming You to Your New Home
Congratulations! If you’ve made it to this step, you’re about to become a home owner in Sydney. At settlement, the balance of the purchase price is paid, and the property title is transferred to your name.
Whether you’re in one of the best places to live in Sydney or in one of Sydney’s hidden gems, the journey to your dream home is one that you will always remember.
It’s time to move in and start living in Sydney. Welcome to your dream home!
Buying a House in Sydney FAQ
How do I buy a house in Sydney?
To buy a house in Sydney, you need to first determine your budget and get pre-approved for a home loan. Then, start searching for properties that meet your criteria.
Once you find a house you like, engage a real estate agent or a buyer’s advocate to guide you through the process. Review and negotiate the purchase price, make an offer, and if accepted, proceed with the legal steps.
What are the steps involved in buying a house?
The steps involved in buying a house in Sydney include:
- Getting pre-approved for a home loan
- Searching for properties
- Engaging a real estate agent or buyer’s advocate
- Negotiating the purchase price
- Conducting property inspections
- Reviewing the contract of sale and legal documents
- Exchanging contracts and paying a deposit
- Arranging a building and pest inspection
- Organizing property insurance
- Scheduling settlement
- Completing the purchase and taking ownership of the house
Should I use a solicitor or a conveyancer when buying a house in Sydney?
When buying a house in Sydney, you have the option to use either a solicitor or a conveyancer to handle the legal aspects of the transaction.
A solicitor is a qualified lawyer who can provide you with general legal advice and assistance. On the other hand, a conveyancer specializes in property law and focuses specifically on the conveyancing process.
What is stamp duty and how does it impact the purchase price?
Stamp duty is a tax imposed by the government on certain transactions, including property purchases. The amount of stamp duty payable depends on the purchase price of the house.
It is important to factor in the cost of stamp duty when determining your budget and making an offer on a house in Sydney.
