Buying a house is one of the most significant decisions and investments you can make in life, because the value of a property increases gradually–especially in Sydney, where home prices are going through the roof.
Buying a new house is a massive commitment, so you must do your homework before making any commitments. This article will guide you through the process of buying one of the best homes for sale in Sydney, Australia and what to expect.
What Are the Main Steps for Buying a House in Sydney?
- Organise Your Finances
Before you start searching for your dream house, it’s wise to contact banks and other lending institutions to determine how much money you can borrow. Once you determine how much you can borrow, calculate what your repayments would look like for that amount to be sure you can repay the loan. This is vital, because you don’t want to find a house you love and realise you can’t afford it–or even worse, buy the home only to realise you can’t repay the mortgage.
- Find and Inspect Houses
Now that you know how much money you can borrow and are sure you can make the repayments for that loan, it’s time to find a house that fits within your budget. To start, check out our website, type in your target location, and select the property features you’re looking for, including the number of bathrooms, bedrooms, car parks, and other important property features you need.
Shortlist houses to keep track of the ones you like, and set up house alerts to get notifications when homes come to the market that match what you’re looking for. Further, before buying a home in Sydney, you must inspect it. This lets you detect potential issues and ensures the house meets your requirements. You should also organise a building inspection report to assess the house’s condition.
- Make an Offer
Making a low offer could be insulting to the vendor, but making an offer too close to the listing price may mean you’ll end up paying more than you need to. To make the right offer, hire a valuer to inspect the house and give you a rough idea of how much you should offer. You must submit your offer in writing to an agent who will pass it to the seller. Specify how much you’re ready to pay and any conditions you wish to attach to your offer, including the deposit you’ll put down, repairs needed, and the deadline to accept or reject the bid.
- Organise Legalities
This is a formal process, because legal documents must be exchanged and signed to complete a house purchase. You must engage a conveyancer or lawyer who practices property law in Sydney to help you at this stage. Whether you hire a solicitor or conveyancer when buying a house, they must perform these crucial tasks:
- Review the sales contract
- Exchange the sale contract with the seller and their lawyer
- Arrange for payments, like stamp duties and deposits
- Prepare a mortgage agreement
- Arrange change of title deeds
Negotiate a Contract and Make a Deposit
When buying a property in Sydney, the exchange of contracts legally completes the buying process. You and the seller will receive copies of the sale contract and must sign your copy before giving it to the seller. Your solicitor will organise this, and you must pay a deposit for the house. The deposit is often 10% of the accepted purchase price; however, you and the seller can agree on a different amount that must be included in the contract.
A three- to five-day cooling-off period is allowed when buying a house in Sydney. After exchanging contracts, you’ll have six weeks until settlement. After that, your solicitor will meet with the seller’s solicitor to exchange cheques and transfer the house over to you. Congrats, you’re now a homeowner!
Although buying a house is a challenging process, the five steps we’ve discussed in this article will guide you through the process of purchasing a home in Sydney and ensure everything goes as smoothly as possible. Looking for more details on dual-living home designs in Sydney or the cost of building a house in Sydney? Take a look at our latest articles.