So you’re ready to buy. Perhaps this is your first purchase or perhaps you are adding a new jewel to your property crown. NP Evernest can help you with all aspects of the buying process.
Here are some fast facts:
How do you want to buy?
Auction
Make sure you visit the property and thoroughly review if it is right for you. The auction process is a legally binding process and, in some cases, a deposit will be required as soon as the hammer falls. The reserve price is the minimum amount the seller will accept. Don’t start the bidding below this amount.
Don’t be deterred by large crowds. Many will be there as spectators. All that matters is those registered to bid. Know your limits and prepare your budget carefully before attending the auction. Bring a support person when you can to help you with any high pressure moments that might arise. Sometimes buying at auction will yield a better result than buying privately.
Off the plan
This arrangement allows the developer to sell properties before they are built. As a result, they are able to secure capital for their construction and this is offset by offering the property at a cheaper price to buyers.
There are benefits and risks associated with buying in this way. Sometimes the final construction may be different to the original plan. Sometimes the workmanship may not be all that you hoped for.
These are worst case scenarios, of course. The best way to minimise these risks is to do plenty of research, talk to your real estate agent and ask lots of questions.
The Victoria Government offers an Off The Plan Concession to eligible buyers. You can learn more at the State Revenue Office website.
Privately
A private sale involves one party selling directly to another party. There may be a negotiation period and then a settlement period.
NP Evernest can assist with facilitating private sales. We will make sure all the right protections are put in place including a cooling off period and the necessary inspections.
Costs
- Land Duty (previously called Stamp Duty) – A tax paid to the state government for property sales. Land Duty varies depending on the price. Go to the State Revenue Office Victoria Land Duty calculator to work out what yours will be.
- Land tax – If your home is the only property you own you do not have to pay land tax. For additional properties, find out all you need to know about land tax at https://www.sro.vic.gov.au/land-tax
- Legal and conveyancer fees
- Fire Services Property Levy – an annual tax paid to the State Government to help fund fire services. Find out more at https://www.sro.vic.gov.au/fire-services-property-levy
- Mortgage broking and local application fees
- Local Council rates – find out how rates are calculated at https://www.localgovernment.vic.gov.au/our-programs/council-rates-and-charges/calculating-rates
- Inspections for buildings and pests
- Valuation fees
- Registration of title
Things to think about
- Do your research – ask questions, research online and don’t cut corners. Take your time to make sure you make the decision is the right one.
- Duty concessions – Check if you are eligible for pensioner, first-time buyers and principal place of residence concessions at https://www.sro.vic.gov.au/buying-property
- First Home Owner grant – $10,000 available when you buy or build your first home. The grant is $20,000 when you buy or build in regional Victoria. Learn more at https://www.sro.vic.gov.au/fhogapply
- Cooling off periods – a 3 day cooling-off period applies to private sales of residential and small rural properties.
- Mortgage broking – Finding the right mortgage broker can help you locate the right financing for your property purchase. We are delighted to also offer Mortgage Broking services through the NP Home Loans arm of our business.
