Buying Property
Don't risk your major investment in buying a home, land or unit until you have spoken to us.
What do you need to do:
- When you have found a home that is right for you ask the Real Estate Agent for a full photocopy of th Contract and come and see us.
- We can help you organise qualitive reports on the property such as Building Report, Pest Report, Survey Report, and if buying a unit, a Strata Books Inspection Report.
- Call us for a referral to a mobile Broker, or see your financier or Bank as soon as possible and lodge your Loan Application with them.
What comes next? - EXCHANGE OF CONTRACTS.
- You can read and review the draft Contract in the agent's office and after filling in:
1. your details,
2. the details of the Price and Inclusions
3. making any deletions to any conditions that you do not agree with and
4. adding conditions that you need to have written in the contract
- You can then sign the Contract there and then arrange for the Agent to have the Vendor or Seller sign a similar Contract and exchange and dated each of the Contracts. You should pay to the Agent a Deposit as well.
- You will then have a 5 day "cooling-off" period to allow you to obtain your qualitive reports and your Loan Contract from your bank, as well as having 5 days to reconsider your purchase.
- The vendor cannot sell the property to anyone else during this period.
- If you decide to change your mind for any reason you can rescind the Contract, but only before the Cooling-off period ends, and you will only forfeit a payment of 0.25% of the Purchase Price.
- Alternatively, you can come and see us with the Contract and once you have obtained your qualitive reports and your Loan Contract, you can sign the Contract and exchange without a Cooling-off Period. Many vendors prefer this as they know that you will not be changing your mind.
STAMP DUTY PAYABLE ON THE CONTRACT
In New South Wales the rates of stamp duty payable on the Contract for purchase of property after exchange are calculated as follows;
| PRICE |
STAMP DUTY |
| $80,000-$300,000 |
3.5% of the price less $1,510 |
| $300,000 - $1,000,000 |
4.5% of the price less $4,510 |
| $1,000,000 & more |
5.5% of the price less $14,510 |
| $3,000,000 & more |
$150,490 + 7.5% of the price above $3 million ( for Residential only") |
This must be paid either prior to the completion or settlement or 3 months from the date of the exchange, whichever is the earlier. (There are some limited exceptions for, inter alia, 'First Home Buyers' and "Off the Plan" Buyers.