OUR GUIDE TO BUYING
There’s a lot to know when it comes to buying a home in St Kilda. Understanding the details of the local community, identifying the size of the home, style of home and setting, and of course, organising a budget- these are all important details to consider. Whether you’re a first-time buyer, looking for a bigger house or downsizing, our professionals will help you every step of the way. At www.reignestateagents.com.au, our goal is to provide you with expert, caring, and candid advice throughout one of the most important transactions you will ever make. That is our commitment to you.
What we recommend:
Think of your dream home and write your Wish List. List all your requirements and prioritise them from most important to less important.
Attending Open Inspections:
When attending open inspections be sure to take a note pad with you, then list the all the advantages and disadvantages of the properties. Then compare you the advantages/disadvantages with your wish list.
When looking at a property try to be objective, it’s very rare that you will find a property that consists of every one of your requirements.
Take your time when inspecting properties, most homes are open between 30mins to 45mins, so use that time to have a good look through the property. Make sure you look up and down, left to right and take in every aspect of the property. Try to keep your number of inspections per day down to a minimum, therefore this gives you ample time to look through the property. Often you may need to visit a home for a second time.
Then once you have found that special home, take some time to check out the local area. Take into consideration, distances from local schools, shops and public transport.
Style, features & Location:
There are several important things to consider when choosing that special home. Things like the style of the home: Modern, Edwardian, Californian, Victorian, renovated, un-renovated. Features like: gas ducted heating, split system air conditioning, evaporative heating/cooling, double lockup garage, single lock up garage plus many more, but the biggest aspect when buying real estate are location, location & location: access to schools, work & amenities.
When it comes to location speak with one of our professionally trained agents as they know the area extremely well. They are also up to date with local government and council changes which can in turn affect the growth of your investment.
Before making an offer on a property it is a good idea to get a Financial Health Check with a qualified professional. Once speaking with a finance consultant/bank or broker you will then have a better idea of your borrowing capacity.
Making an offer:
Once you have selected a property your next step is to make an offer on the property in one of two forms, 1 Contract of Sale 2 Contract Note. In most cases there more than one person interested in a property at any given time, what this means is you need to make your BEST offer.
It is important to know that the selling agent is under no obligation to advise you if another buyer offers a higher price for the property and cannot advise you on the value of that offer. All offers remain confidential unless purchasing under Public Auction Conditions. The selling agent has an obligation to submit all offers to its Vendor.
Often the agent may need to come back to the potential purchasers and discuss the offer. This may be because the offer is not accepted by the Vendor. You may have to re-negotiate the offer.
Once the offer is accepted:
The details of your offer are will be outlined in the Contract of Sale or Contract Note. The price, terms and conditions will be set out in the contract once the Vendor has signed the contract the Offer and Acceptance will be completed.
Please be aware that the contract must have all parties signatures on the contract and communication of its acceptance is conveyed to all parties who are signatories to the contract it will only then become a legal binding contract.
Final Inspection prior to settlement:
Seller/Agent are both responsible for giving every opportunity to the purchaser to complete the Final Inspection. As a purchaser it would be a good idea to make contact with the selling agent to book your final inspection, it is suggested at least 7 days prior to settlement. This will give the purchaser enough time to convey with their legal representative to either book settlement or delay settlement depending on the outcome of the final inspection.
The main purpose for the final inspection is to determine the condition of the property and to confirm that all conditions of the contract have been met. Give yourself enough time to look over the property, it is also a good idea to take photos if anything is out of the ordinary.
On the day of your settlement, your legal representative with arranging the balance of the purchase price is paid to the seller, make sure the Vendors mortgage has been discharged, lodge the new mortgage for the purchaser.
Once this has been completed, the purchaser will now become the legal owner of the said property.
The last and final stage will be the selling agent being advised of the settlement and to make ready the keys for collection.
The Foreign Investment Review Board (FIRB) has made several changes to the regulations now which makes it a lot easier for International Investors to purchase property in Australia.
Who is the FIRB and what do they do!
The FIRB’s primary purpose is to examine applications by foreign investors who would like to purchase property in Australia, it will then make a recommendation to the Government on whether the application is suitable for approval under the Government’s policy.
Any non-Australian resident who wishes to buy real estate in Australia obtain prior to signing a contract written approval from the FIRB.
Who is a foreign investor?
The Australian Federal Government defines a ‘foreign interest’ as:
A person who is not ordinarily a resident in Australia
A corporation, business or trust in which a foreigner and any associates have 15% or more ownership or in which several foreigners have 40% or more aggregate of the ownership.
Foreign-owned companies are now able to now purchase established dwellings for the use of their Australian-based staff.
If it is expected to remain vacant for more than 6 months the property must either be rented or sold. There is no limit to the number of established dwellings that can be purchased when required for employee accommodation.
Foreign students living in Australia no longer have a restriction of the $300,000 limit when purchasing the principal place of residence.
Temporary residents of Australia, no longer require approval to purchase a second-hand property as their principal place of residence (this does not include short-term visitors such as tourists, business people and those here for a medical procedure).
Foreign-owned companies, non-resident foreigners and trust estates of single blocks of vacant residential land are required to build a dwelling within a period of 24 months and development expenditure of at least 50 per cent of land cost).
Not Single Blocks
Vacant land for the purpose of building multiple residential dwellings are normally approved subject to the following conditions:
continuous substantial construction must commence within 24 months; and
at least 50 per cent of the acquisition cost or the current market value of the land (whichever is higher) must be spent on development.
Once these conditions have been met and approved, properties acquired may be rented, sold to Australian or other eligible purchasers, or you can even keep the property for Australian based employees.
The current requirement is that only 50 per cent of new dwellings can be sold to a foreign investor on the ‘buy off the plan’ basis – provided developers market locally as well as overseas.
For further information please feel free to contact one of our sales consultants or the FIRB directly www.firb.gov.au