The Key Steps to Getting a Key to Your First Property in NSW

Are you thinking of buying a house in NSW? Buying your first property as an owner occupier or for investment purposes can be daunting and you might not know where to start. Let us take you through the keys steps in purchasing a house in NSW. 

Step 1 – Finance 

Organise your finance first to understand what you can afford based on your current and future needs. Speak with a lending specialist to ascertain how much you can borrow and calculate what the loan repayments would be. Be mindful of additional fees that you may need to pay to the lending institution such as establishment, servicing and valuation fees. Your lender will value the property to determine whether the property is adequate security for the loan amount. What’s important to know is that the loan amount is a percentage of the valuation of the property, not a percentage of the purchase price. If you are borrowing more than 80% of the value of the property you’re buying, known as the loan-to-value ratio, there is a one-off, non-refundable premium added to your loan. 

Step 2 – Property Search 

Once you have your finance sorted, it’s time to search for your dream home that fits your budget! Have you thought about which suburb you are interested in? Is the home located within proximity to public transport, shopping centres, schools and other facilities? You may want to consider which type of property is suitable for your lifestyle such as a unit, townhouse or house and the number of bedrooms, bathrooms and car parking spaces you need. Take the opportunity to attend an ‘open house’ to inspect the property at the available scheduled period. By viewing multiple listed properties, you can compare value for money. You can also arrange a building inspection to be conducted by a professional to assess the condition of the property and check for defects. 

Step 3 – Make an Offer 

When you have found the property that you intend to buy, you should   have us review the contract for sale. After you have sought advice confirming that the contract is in order, this is the time to make an offer. Once you have submitted your offer, the vendor’s agent will request a deposit which is usually 10% of the purchase price unless another deposit amount has been agreed to by both parties. If your offer is accepted, you can arrange to exchange contracts with a 5-business day cooling-off period through your conveyancer or solicitor with the vendor’s agent. If you decide to rescind the contract during the cooling-off period, the vendor is entitled to withhold 0.25% of the purchase price and the remaining of the deposit paid will be refunded back to you. However, the cooling-off period does not apply if you instruct  us to sign a section 66W Certificate to waive your cooling-off rights or if you buy the property at an auction. 

Step 4 – Legal Documents 

It typically takes 6 weeks from exchange of contracts until settlement. During this period,  we will make enquiries and searches and prepare documents for transfer of title and any other relevant documents in readiness for settlement and arrange payment  of stamp duty. Your lender will prepare the loan documents which set out the terms and conditions of the loan. You should also arrange to obtain insurance of the property with adequate cover for the structures and contents Your lender will require details and proof of insurance on or before settlement and you will be liable from the time you take possession of the property. If you are purchasing a unit, you will require to obtain a certificate of currency from the insurer of the owners’ corporation to provide to your lender and will only need to insure the contents as the structure will be covered by the owners’ corporation insurances. 

Step 5 – Settlement 

Before settlement, it is important to conduct a pre-settlement inspection to ensure that the property is in the same condition as when you  exchanged contracts as there should be no damage (other than normal wear and tear) or alterations and all fixtures and fittings listed in the contract are intact. On the day of settlement,  we will finalise the settlement with the lender and vendor’s representative. The transfer and the mortgage on title will be registered  at NSW Land Registry Services.  We will advise you once settlement is finalised.

Congratulations – you can now arrange to collect your key from the vendor’s agent to your new home and move in! 

If you are looking at purchasing your first property please contact our Commercial Team and they will be able to assist you with your new purchase!

Article by Judy Wong
Photo by Jason D on Unsplash