Property auction home >> Property Auction Articles >> House Buying Basics
With the interest rate at its lowest for 22 years, many
people are thinking about buying property for the first
time. However, the composite legal terms, hidden costs and
complicated process can be puzzling, so we have put together
some sensible pointers to guide you through the network…
There are essentially two options you can choose from —
a freehold property or a sectional label unit. A freehold
property (which includes a cluster home) is usually registered
in your own name and you can handle your property as you
like, apparently within the limits of metropolitan bylaw.
You are responsible for preservation and enhancement.
A sectional title unit is typically a townhouse or a flat.
You buy more than just the unit as you contribute to common
property like a pool, the garden and security services.
These are paid for via a monthly tax. The unit owners choose
by ballot trustees to a body commercial, which handles maintenance,
administration and other issue.
The easiest and most general way to own property is to register
a property in your name or together with one more person.
You can also buy a property through a property auction company,
close company or trust — check what’s best for you with
a good personal monetary advisor. If the property is already
registered in one of these bodies, you don’t pay transfer
obligation when you buy the property.
Unless you are lucky sufficient to pay money for your house,
you’ll need to concern for a home loan. The universal rule
is that your monthly home loan refund shouldn’t be more
than 30 percent of your gross monthly income. Your partner’s
income is also taken into bank account.
Keep in mind that the price of owning a home is far more
than just your monthly home loan refund. You’ll need to
budget for life insurance premium, insurance for buildings
and family contents, taxes, rates, electricity and water,
maintenance and moving costs. Don’t be troubled to ask your
bank for opinion on these costs, or anything else to do
with buying the property auction.
If you’re hesitant about how much you make the grade for,
apply for a preapproval record that guarantees a home loan.
This gives you more self-confidence and ability when you
start house hunting as you already know the size of your
Do some research when you view properties for sale. Some
things to believe are:
• Expediency: distance to shopping centers,
schools, work etc.
• Coverage to noise, pollution, flight paths, traffic,
water courses and wind.
• General condition: clean and well maintained area, old
or new, streets.
• Security: reputation, proximity to vacant land, security
• Relaxation: tennis courts, parks, golf courses.
• Potential development: schools, shopping centers, major
Offer to Purchase
If you decide to buy a property you have
to notice an offer to buy, and the seller can believe or
reject this within the time period you precise. On getting
it becomes an officially compulsory contract, so before
signing make sure the following:
• For a full explanation of the property,
as described in the label deed.
• The obtain price and drop and how these will be paid.
• The living date and rent.
• Special sale circumstances e.g. granting of a home loan.
• All movable items, furniture and equipment are specified
to avoid arguments down the line.
Buying Tips 1 Buying