You’ve done it! After years of saving and cutting back on expenses, you finally have the deposit for your first home. That’s a huge achievement, but the financial journey does not end there. Buying a property involves more than the purchase price, and preparing for the additional steps and costs can make the process much smoother.
Looking beyond the deposit is key to making a calm transition from renting to owning. Here are the important things to consider once your offer has been accepted.
Budgeting for Hidden Costs
The property price is only the beginning. Several additional expenses can arise during the buying process, and they can quickly add up. Setting aside extra funds, often around 5% of the purchase price, can help cover these unexpected costs. First-home buyers should also consider the choices they make throughout the process. Learning from the common regrets home buyers have can help you avoid mistakes and make more informed choices before purchasing a property.
Some of the most common hidden costs of buying include:
- Stamp Duty: This government tax applies when transferring property ownership. The amount varies depending on the state or territory and can often be one of the largest additional expenses.
- Legal and Conveyancing Fees: A conveyancer or solicitor can help manage the legal paperwork involved in transferring property ownership.
- Building and Pest Inspections: These inspections can identify potential issues, such as structural problems or termite damage, before you commit to the purchase.
- Lender Fees: Your lender may charge application fees, valuation fees, or other costs associated with setting up your home loan.
- Moving Costs: Remember to budget for removalists, packing materials, and storage if needed.
Decoding the Property Contract
A contract of sale is a legally binding document that contains important details about your property purchase. Before signing, it is essential to understand exactly what you are agreeing to. The contract outlines details such as the settlement date, purchase conditions, and included fixtures and fittings.
Pay close attention to any special conditions. Check whether there are clauses relating to finance approval, building inspections, or other requirements. The legal language can feel complicated, and many first-home buyers may feel unsure about what certain terms mean. Rushing through the contract or failing to seek professional advice could result in costly mistakes and unexpected issues later.
Settlement Day Checklist
Settlement day is when the property officially becomes yours. While your legal and financial teams will do most of the heavy lifting, you still have a few things to do to get ready.
- Final Inspection: You should complete one final inspection of the property, usually on the morning of settlement or the day before. The goal is to check that the property is in the same condition as when you first agreed to purchase it and that all included items are still present.
- Confirm Funds: Check with your bank that all required funds are available and ready to be transferred.
- Stay in Touch: Stay in contact with your conveyancer. They’ll let you know once settlement has officially happened.
- Collect the Keys: Once settlement is finalised, your conveyancer will notify the real estate agent that the keys can be released. Congratulations, you are officially a homeowner!
Post-Purchase Property Admin
The process does not stop once you have the keys. There are still a few administrative tasks to complete before you can fully settle in. Start by arranging for your essential services like electricity, gas, and internet to be connected. This helps ensure your essential services are ready when you move in.
Remember to update your address with everyone important, including your bank, employer, vehicle registration, and the Australian Electoral Commission. It is also a good time to review or arrange home and contents insurance to protect your new property. Getting these details sorted early means you can focus on the fun part: turning your new house into a home.
Getting the keys to your first property is an exciting milestone. Preparing for the additional steps involved can help make the experience feel more manageable and allow you to focus on building your future in your new home.