When buying a property, it’s essential to understand the process and make informed decisions every step of the way. This JJ Property Buying Guide offers a comprehensive overview of the key stages involved in purchasing a property, from initial research and budgeting to inspections, legal considerations, and closing the deal. Whether you’re a first-time buyer or an experienced investor, this guide will provide valuable insights and tips to help you navigate the real estate market with confidence.

Research and Budgeting

• Set a budget: determine how much you can afford, including deposits, fees and outgoing costs. It is standard for a contract to include a total deposit of up to 10% of the purchase price.
• Research locations: look into different suburbs to find the right area for your needs (school, transport, amentities etc)

Financing Options

It's common for first-time home buyers to seek financial assistance when purchasing their first property. In Queensland, several financing options are available to help reduce the financial strain.

• The Queensland first home owner grant: This grant is offered by the Office of State Revenue (OSR), entitling a first home buyer up to $15,000 toward their first home. This financial aid is only available if the property is valued at $750,000 or less.
• First Home Owner Grant (FHOG): This grant offers new buyers up to $20,000 toward their first home, alongside a reduction in stamp duty costs , which refers to the tax levied on property transactions.
• First Home Loan Deposit Scheme: Finally, this home owners grant provides first home buyers the opportunity to purchase their new home with a downpayment as minimal as 5%.

Know Your Hidden Costs

What are they?: hidden costs should be taken into account when budgeting for the purchase of your property. Hidden costs can include solicitor fees, land tax, lenders mortgage insurance, inspection fees and searches, and stamp duty.

Get Pre-Approval for Finanace

Speak to a lender: approach a bank or mortgage broker to get yourself pre-approved for a loan. This gives you a clear idea of your budget.

Find a Property

• Look for listings: use online realestate sites, attend open homes and engage with local agents to find properties that meet your criteria
• Visit properties: attend open houses and private inspections to get a feel for the homes

Making an Offer

• Formulating your offer: after viewing a property you’re interested in, you’ll decide on a price. Consider recent sales in the area and the property’s condition.
• Submitting your offer: you typically do this through your real estate agent. You can submit a verbal offer, but it’s best to put it in writing.
• Offer conditions: your offer may include conditions (like subject to finance, pest inspection, or building inspection). These protect you if certain criteria aren't met.

Negotiation

• Counter-offers: the seller might counter your offer with a different price or conditions. This can go back and forth until both parties agree.
• Acceptance: once both you and the seller agree on the price and conditions, the seller will sign the contract.

Finalised Contract

• Receive a contract: if your offer is accepted, you will receive the completed/seller-signed contract of sale. This outlines the terms and conditions.
• Engage in a solicitor: provide the agent with your solicitor details, so they can send them a copy of the completed contract and any other required documentation.

Cooling-Off Period

• Standard duration: in Queensland, there's usually a 5-business-day cooling-off period that starts once you receive a copy of the signed contract.
• Right to withdraw: during this time, you can withdraw from the contract, but you may forfeit a small portion of your deposit (usually 0.25% of the purchase price).
• Waiving the cooling-off period: you can choose to waive this period, but this must be done in writing and usually only after you’ve done sufficient due diligence.

Conduct Inspections

• Building and pest inspection: engage in a building and pest inspection company to carry out the inspection. This inspection will check for any major issues with the property. If any issues with the property are identified that you would like addressed, you may request rectifications through your solicitor. It can be negotiated between the buyer and seller whether the issues will be resolved before settlement, or alternatively, the total sale price may be reduced to account for these costs.
• Body corporate searches: with your solicitior’s help, conduct a body corporate search, which involves obtaining and reviewing records of the property's body corporate, including financials, meeting minutes, and any ongoing disputes. This will provide you with essential information about fees, regulations, and potential liabilities associated with the property/building.
• Unsatisfactory inspections: if you are unhappy with any of the findings in the reports related to your clause inspections/searches, you can withdraw from the contract penalty free.

Finalise Your Loan and Clauses

• Complete your loan application: provide the necessary documents to your lender to finalise your loan
• Lender approval: once approved, the lender will issue a formal loan offer. If your finance is not approved, you can withdraw from the contract penalty-free.
• Unconditional: once your inspections/clauses have been satisifed and your finance has been approved, confirmed by the solicitor, your contract will then go unconditional and becomes legally binding. This is when the balance deposit is to be paid (if applicable).

Settlement

• Prepare for settlement: this is when you pay for the property. Your solicitor will handle the paperwork.
• Pre-settlement inspection: organise a pre-settlement inspection with the agent. During this inspection, you will have the opportunity to conduct a final walkthrough to ensure that the property is in the same condition as it was at the time of your offer.
• Key-collection: once the solicitors confirmed that the property has settled, you can collect the keys to your new home from the agent!
• Transfer of Title: your solicitor will ensure that the title is registered in your name with the Queensland Land Titles Office

Important Notes

• Standard contract: most real estate transactions in QLD use a standard contract provided by the Real Estate Institute of QLD (REIQ).
• Disclosure obligations: the seller must disclose certain information about the property (e.g. material defects) and you should review these disclosures carefully.

Importance of Real Estate Professional Guidance

Seeking the guidance of real estate professionals is crucial when navigating the complexities of property transactions. Their expertise in market trends, legal requirements, and negotiation strategies can help ensure that you make informed decisions and avoid costly mistakes. From valuing a property to managing paperwork, real estate professionals provide valuable insights and support throughout the entire buying or selling process, ultimately protecting your investment and helping you achieve your goals more efficiently.

By understanding these steps in detail, you’ll be better prepared for the offer and contract stages of buying real estate in Queensland! If you have any more specific questions about this process, feel free to ask.