Pre-Contractual Negotiation As a buyer, you have the right to negotiate the price. Do not allow yourself to feel pressured. Determine your budget based on your financial circumstances. You must be comfortable that you are able to make the repayments if you require a loan.Inspections Condition of Property Make sure you check the condition of the property – smell of mould, knock the walls to ensure they are not hollow, check that the toilet, heating and air-conditioning work.You should arrange for an independent building inspection to be done to ensure you are satisfied with the overall quality of the home and its fittings. You should also arrange pest inspection to ensure you are aware of any issues such as termite infestations. These inspections will protect your investment by revealing any potential issues with the property that may arise further down the track and cost significantly more to repair. It is important to speak to the inspectors just in case you have any questions but also obtain a written report of the inspections undertaken. Inspect the property again before settlement to ensure the property is in the same condition as when you signed the contract of sale. Location of Property Check if the property is at risk of flooding. Check the local council’s flood maps online. If the area is prone to flooding, ensure that you obtain flood insurance cover for your home and contents. Size of Property Before you buy, you should obtain a property boundary identification survey to avoid any potential issues with neighbours in relation to fence boundaries.Loan Approval Ensure that your loan is pre-approved. If your loan is pre-approved, you will be ready to purchase your property without an delays caused by the need to obtain approval.Seek legal advice before signing anything or giving any money away Get legal advice before, not after, signing the Contract to buy property. Clients who change their minds after signing face significant loss of money and penalties. For example, if you are currently renting or selling your own home and want to move in by a certain date, you will need to negotiate a suitable settlement period with the vendor. Check the contract to see what the proposed settlement date is, which is usually 30, 60 or 90 days. Your solicitor will be able to negotiate terms and conditions to suit your circumstances.FIRB Approval If you’re on a temporary visa such as a spouse visa, 457 work visa, a Temporary Skill Shortage (TSS) visa or student visa, you will need FIRB approval but you can only buy one established dwelling and it must be to live in, and you will be required to sell it once you do not live there anymore. You can buy an investment property, however it must be a new property or vacant land to build a new property within 24 months. If you’re a foreign investor, you cannot buy an established dwelling as an investment property. Arrange insurance for the property When you have signed a contract of sale you will need to arrange insurance to cover the property up to the settlement date. Once settlement has taken place you will need to insure both the building and its contents.
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