You have found your dream home and would really like to put an offer on it. You have saved long and hard for a deposit. Skipped that smashed avocado toasty on the weekend. Problem is, you haven’t organised the finance required to buy the property. That’s ok, you can include a ‘subject to finance’ clause on your offer! What does a ‘subject to finance’ clause mean? When you find your dream home and want to put in an offer, you will be required to make an offer in writing. A ‘contract of sale’ is the document used to make an offer and it is common to make an offer ‘subject to finance’ as well as other conditions such as ‘subject to building and pest inspection’. Making an offer ‘subject to finance’ means that the offer you make will only proceed if your finance has been approved by a lender. In the event that the loan is not approved, then as the buyer, you can generally opt out of the sale without penalty. Do I need to have a subject to finance clause? Yes. A ‘subject to finance’ clause can help ease the stress of buying a property. Even if you have… [Read More]

You have been saving hard for a deposit, but how much do you need to save? Is it 10%? Is it 20% what is the real amount? The costs associated with buying a property involves more than just the purchase price. How much you save will be dependent on whether you are a first home buyer, want to avoid lenders mortgage insurance or have the ability to have a family guarantor. Therefore, it is dependent on your situation but the more the better! It is, however, important to understand the costs of buying a property so that you can accommodate for these. What are some of the costs involved in buying a property? It is more than just moving costs, council rates and furniture, homebuyers face additional fees to complete the purchase. Here are a few to get you thinking! Stamp duty: Stamp duty is a fee that is charged for mortgage documents to be legal. If you are a first home buyer, you may be eligible for stamp duty exemption.  Legal costs: The legal transfer of ownership of the property that you are purchasing will require a solicitor or conveyancer to complete. Your solicitor/conveyancer will perform property and title… [Read More]

Choose a reputable builder: Ensure that you pick a reputable builder. Do your research. Your building designer may be able to help direct you to builder that they regularly work with. Budget well: Ensure that you have a clear understanding of all of the costs involved in constructing your new home. Costs such as site costs, government fees, stamp duty and add-ons, can help you modify your plans to meet your budget and ensure your dreams become a reality. To avoid any changes to your finance requirements during the construction phase, it may be worth having some savings set aside for any unexpected costs that arise. Be smart when developing a floor plan and plan for the future: Having reputable building designer can help you to consider things such as the orientation of the building to ensure that you make the most of sunlight all times of the year, as well as other aspects of your floor plan like extra storage, or extra space for guests.To help you with your budgeting, get a list of everything that is included in the price and make a decision on the add-ons and upgrades Get your financing in order: Ensure that the lender that provides your… [Read More]

Doing research is a must when buying off-the-plan. Here are 5 things to consider when you buy off the plan. Check the contract: It is imperative that you engage the services of a good conveyancer/ solicitor to review the contract prior to signing. There are a number of areas to review including the cooling off period, the inclusions and warranties. Look for any ‘sunset clause in the contract. A sunset clause varies from development to development but refers to the maximum time in which the developer has to finish the project. In the event that your home is not completed by this time, you can walk away from the contract and have your deposit returned. Builder: Go with a reputable developer.  Do your research on your builder by performing a background check. Check they are licensed, check information about their recent developments and check online forums to see if there is any positive or negative experiences. Insurance: If the property is NOT part of a multi-unit/ multi storey development, check the property has home warranty insurance as this is the developer’s legal responsibility. Home warranty insurance will cover loss or damage If the work is not completed, breach of statutory… [Read More]