Stuff home buyers need to know.
First home buyers are the most susceptible to being confused about the buying process.
According to research done buy realestate.com.au. Around 15% of those surveyed were “extremely confused” by the process, while 49% were “somewhat confused”.
So some stuff you may want to know.
What is the correct amount of deposit?
In QLD the most you can put down is 10%, you can put what ever you want down, even $10.
But most owners look at the deposit amount to gauge how good your finance is.
I recommend you put what ever is the highest amount that you are allowed to do via internet bank transactions.
Most banks have you ate $5000, that is a good nice amount to put down as a deposit.
Do I need a Lawyer?
Short answer is Yes, most law firms have a conveyancer working for them, they will guide you thru all the legal stuff, your rights during building and pest, finance and they will do searches on the property as well. They will also organise your stamp duties. They will cost around $800 - $1500.
How much is Stamp Duty?
Well, it is a state government tax.
In QLD if you purchase a property for $400,000 is around $6,300
A property at $500,000 is around $10,000 Click Here For QLD stamp duties
Mortgage applications or how much can they afford?
Go and see a mortgage broker, they will be able to tell you how much you can afford and what is the best style of mortgage for you as well. Most mortgage brokers can tell you a lot about the process of purchasing your new home.
What is a Body corporate and why are there fees to pay?
Most unit complexes have a body corp in place, in fact if they don’t they are running it illegally, you pay body corp fees, to pay for the up keep of the building and the grounds, if there is a pool or tennis court you will be paying for the maintenance of that as well, then there is insurance, this is higher in North Queensland because of the cyclone and flooding risk. If you are doing a contract on a property, a body corp search should be attached.
Most contracts in QLD have in the fine print that the purchaser is liable for the insurance on the property from the moment the contract become active. This means you need to talk to your mortgage broker or bank about getting the property insured as soon as possible. This is to make sure that the property is insured even if the current owner has some in place, so the bank can start lending you the money to purchase the property.