Professionals Yarra Valley

2460 Warburton Hwy Yarra Junction

03 5967 1800

03 5967 1466

sales@andrewmcmath.com.au

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10 Frequently Asked Questions When Buying In The Yarra Valley

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1)   WHAT ARE THE COSTS OF BUYING A PROPERTY?
A real estate transaction is associated with many costs and expenses. A prior understanding of the costs can help you plan your budget smartly. Some of the common expenses you must account for when buying property are:

Your solicitor/conveyancer or mortgage representative can provide you with more details of costs involved.

2)   WHAT MONEY DO I PAY UPFRONT?

An initital deposit will be required when the contract is signed (usually around $1000). This is fully refundable if the contract is not accepted by the vendor. A full deposit (usually 10%) is required at a date agreed in the contract. All money will be paid to your agent and kept in a trust account until they are advised by your solicitor/conveyancer.

3)   WHAT IS A STRATA TITLE?
Strata Title is a type of ownership where the individual (buyer) owns part of the property (a lot, townhouse or apartment) and shares ownership in the rest (common property comprising gardens, driveways, etc) through a community association or owners corporation.

4)   WHAT IS A COOLING-OFF PERIOD?
After the contracts have been exchanged, a provision called the cooling-off period allows the buyer to have a change of heart and cancel the contract. During this period, the seller is forbidden from selling the property to another buyer. A cooling-off period does not apply if you have successfully bid at a property auction.

5)  SHOULD I HIRE A CONVEYANCER OR DO THE JOB MYSELF?
While you are permitted by law to do your own conveyancing, it is a specialized job best left to a professional conveyancer. Make sure you know what you are doing or you risk delaying the settlement and incurring lots of costs.

6)   DO I HAVE TO PAY GST ON MY HOME PURCHASE?
You don’t have to pay GST if you have bought an already established home. However, in case of a newly-built home, GST would have been applicable to the goods and services used in constructing the home, which will reflect in the overall cost of the building. Building and pest inspections, and property valuation may attract GST.

7)   WHAT SPECIAL CONDITIONS CAN A CONTRACT CONTAIN?
A contract can contain different types of special conditions. These include finance clauses &/or building and pest inspections.

8)   WHAT PROBLEMS CAN FIRST HOME BUYERS FACE AT AUCTION?
Real estate auction sales are unconditional, meaning you cannot cancel the contract if your loan application is rejected. They are typically intended for buyers who have ready cash to complete the purchase. For a first-time home buyer who almost always seeks financing to purchase, an auction can be a huge risk if the home loan is not approved.

9)   CAN I BUY A PROPERTY WITH ANOTHER PERSON?
Yes, there are two types of shared/co-ownership you can consider. Joint tenants is one, where you and the other individual (spouse or other) own equal shares of the property. Tenants in common is another form of co-ownership, where the two owners can hold equal or unequal shares of the property.

10) IS MY PURCHASE CONFIDENTIAL?

Yes. You can be assured that all your personal information and any details regarding the purchase of your property are treated as confidential by our agency. The sale price will be advertised after the contract is unconditional unless you advise us you wish otherwise. Please note that once your purchase has settled the valuer general is informed of all sale prices.

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