Purchasing through NSR
Purchasing Through North Shore Realty
Buying a home is the biggest financial commitment that most people will make in their lifetime. There are many reasons to buy (such as investment, desire to stop paying rent, the security of home ownership, upsizing or downsizing). Whatever your motivation, please think it through. North Shore Realty can help you with a frank discussion of your needs and evaluation of what options are best for your situation.
Here is a quick checklist to consider before purchasing:
Have you reviewed your budget recently?
It is always a good idea to write a budget to ensure that new responsibilities such as house maintenance, rates and insurances are taken into account. Some financial planners will ask questions such as how much money do you spend on entertainment each week. A current budget will help you answer such questions honestly. This ensures that when budgeting for the new home you know what changes it will have on your current style of living.
Have you organised your finances?
Do you know how much of a deposit you require to purchase a property? Ensure that your finances are organised and remember to factor in interest rate increases. It is wise to see a financial broker or the bank before you start looking. This way you know in advance what price home meets your budget or what you need to do to be eligible for a loan.
It is worth talking to several money lenders and organising your finances prior to signing a contract for a property. This way the turnover time for having your loan approved may be shorter, since they will have advised you of all the information they require prior to offering you a mortgage. They will advise you about how much you can borrow, what the interest rate will be, the costs of any set up fees and the period over which you can repay the loan. Remember that the money market is constantly changing so if you enquire one day and take out a loan a month later, that company may not still be the best source of a loan. Keeping an eye on the daily changes in interest rates between banks could save you thousands.
Stamp duty
If you have questions about stamp duty the website www.treasury.tas.gov.au/tax provides plenty of information including a stamp duty loan application form and a stamp duty calculator.
Have you chosen a solicitor?
This is one of the biggest transactions you will probably make in your life so we recommend that you get a professional to do the conveyancing. Speak to a solicitor for advice on what fees are involved in the conveyancing of a property. You may wish your solicitor to view the contract before you sign it. For this reason you may want to consider who you are going to use as a solicitor before you have decided on which house you are going to buy.
It is most advisable that you do engage a solicitor to handle the transfer of the property title into your name. A solicitor will check the contract details, conduct a search to ensure that the person selling to you is entitled to sell, that the title is in order and there are no charges or problems you are not aware of. The solicitor will then deal with the relevant parties and in particular will deal with your bank to transfer your loan funds and to register the mortgage, transfer the title into your name, and advise the local Council that you are the new owner. While this can all be done by you, there are many pitfalls and the employment of a solicitor is strongly advised.
Solicitors charge you a fee for handling the transaction on your behalf. The Law Society of Tasmania has produced a recommended scale of fees but many solicitors’ fees do vary so it is recommended that you get a quote. Solicitors may also charge out of pocket expenses such as title registration fees and office expenses such as photocopying.
You are welcome to view a copy of a standard Law Society contract before purchasing a property. These are available from our office.