Purchasing Guide

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Buying a home is the single most important purchase you will make. Considering what kind of financing you need is as crucial as ensuring you will not incur any extra expenses when moving. Here is a practical purchasing guide to give you an overview of the process.

Title Verification

Also known as a Certificate of Title, this includes information about the registered owner or if any covenants, easements or mortgages are held.

Axis Lending Tip:

Find out if a caveat is on the property which could mean that another party has an interest in the property.

Is there an easement? This may hinder land use. A common example of this is the use of a shared driveway with a neighbour.

If mortgage is found, ensure they are removed before or at settlement to achieve a good title.

The Three Main Titles

Strata: Initiated for residential units and retirement villages. A strata title is allocated to your individual unit as well as the parking space. You also have shared responsibility common areas the body corporate oversees.

Torrens Title: This is a registered title providing the buyer with a ‘good title’ guarantee. This is the most common title found in Australia.

Once unconditional approval is received in writing, you can exchange contracts if you are purchasing a property subject to finance or complete your off the plan property transaction.

Company Title: You do not own a title but are given shares in a company that does own the title. Upon the sale of your unit, your shares are transferred the company.

Off the Plan Purchases

Also known as a Certificate of Title, this includes information about the registered owner or if any covenants, easements or mortgages are held.

Axis Lending Tip:

Is there a reputable developer in charge of the project? What other projects have they completed? Have they ever enacted the sunset clause and left investors high and dry?

Be aware of what your inclusions will be as well as the fixtures and finishes.

Know what the completed project will look like – don’t rely on flashy marketing brochures. Carefully examine drawings and plans.

Your Local Council

Your local council can assist you with some due diligence when purchasing a property. Find out if:

  • The zoning is appropriate for your intended use?
  • What can and can’t be built upon your property?
  • If you are near vacant land, are there future plans for the development of units next to your property?
  • Was council permission obtained for any structures built on the property?

Statutory Authorities and Your Property

What is a statutory authority? It is a body set up by law which is authorised to enact legislation on behalf of the relevant country or state.

  • From the perspective of infrastructure, do you know if there are plans for the acquisition of your property in the future?
  • Is electricity and gas connected and available?
  • Will there be major works undertaken such the expansion of roads or freeways?
  • Could future changes to your suburb impact upon the use of your property?

Axis Lending Tip:

Apply for a Certificate of Rates, for example, Certificate 603 in New South Wales, from your council so that you can find out if any rates or other charges in relation to your property are outstanding before you settle on your next purchase.

Cost Associated with property Purchases

  • Mortgage costs
  • Title searches
  • Land titles registration fees
  • Certificates of rates
  • Legal services (or conveyancing)
  • Pest inspections
  • Stamp duty (for exemptions call the Office of State Revenue)

 

Need and experienced team to help you navigate your way through your property purchase? Are you eligible for the new home owners grant? Steer clear of unnecessary stress and expenses and get in touch with Axis Lending now.

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