Your complete

property
buying guide

www.ROSSREALTY.com.au
This guide is intended for general information purposes only. The content does not take your personal circumstances into account. You should
obtain independent legal and financial advice before undertaking any transaction involving real estate.
ROSS REALTY uses reasonable endeavours to ensure the information in this guide is current and accurate. To the extent permitted by law, ROSS REALTY
makes no representations or warranties as to the accuracy, reliability, completeness or currency of the information within this guide, and the use of the
guide is at your own risk. None of Landmark, its employees and any authors of the guide can be held liable for any inaccuracies, errors or omissions in the
guide.

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 YOUR COMPLETE PROPERTY BUYING GUIDE

Contents.
Buying a home is a big step! There’s a lot to consider, from the merits of buying
over renting, doing your research, inspecting a property, making an offer,
contracts and settlement. We want to take the mystery out of the home buying
experience, so the ROSS REALTY Buyers’ Guide will cover everything you need
to know from start to finish.

4
Buying vs
8 11
Sorting out Doing your
Renting your finances research

12
Inspecting
16
Making
properties an offer

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BUYING VS RENTING

Buying vs renting.
Which puts you in
Front in the long run?
When it comes to the decision of buying a property versus renting one,
there are a few factors you need to consider.

On the one hand, buying a property certainly has significant immediate

costs, but on the other, renting means you’re effectively paying off
someone else’s mortgage.

So if you’re weighing up which option is right for you, consider both

the short and long-term pros and cons of both.

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 YOUR COMPLETE PROPERTY BUYING GUIDE

Buying.
Pros Cons
One day, you’ll ownyour home Upfront costs
The obvious pro of buying versus renting is that once your mortgage It depends on your location, but across the globe one thing about
has been paid in full, you’ll have a home that you own. This means home ownership is generally the same, and that’s the requirement of
you won’t have to consider the cost of renting into your retirement a big lump sum up-front as a down payment or deposit. This means
plan. If you plan to sell your home after retirement, there’s the you’ll need a hefty amount of cash just to enter the property market.
potential that the property has increased in value, and you’ll have
There are other initial costs too depending on your country, like taxes,
more cash to put towards your nest egg.
stamp duty, solicitor bills and title fees.
You can change the home to suit yourneeds
The cost of upkeep
Even before you pay off your mortgage, the house is still yours to
Unlike renting, the costs associated with the upkeep of your home
change as you see fit. This means painting, fencing, landscaping
falls to you. Depending on the age and state of your home, location
and large-scale renovations are up to you. This gives you a certain
and whether or not you have a free-standing home or apartment/unit
amount of flexibility too, if you buy a home in an area you love, but
will all determine how much you may be spending in maintenance
it’s too small, or in need of work, then you can always address these
costs over the course of owning your home. It’s best to factor this into
issues down the track.
your budget before committing to a mortgage.
Whereas when renting, if the home doesn’t fit your needs in the
Your return on investment is not guaranteed
future, you’ll be looking to relocate to another rental property.
Of course it depends on your area and how this area fairs in the long-
Security run, which can be pretty hard to predict without a crystal ball, but
There’s definitely a certain amount of security that comes from the costs of owning your home versus how much of a return you’ll
owning your home versus renting it. For instance, no one is going to receive if you decide to one day sell might mean you could make a
tell you need to vacate because they’ve decided to sell the property loss at the end of the day.
or move back in themselves. There’s no risk a rental agreement won’t
Other things to factor in here are how long you plan to be in
be renewed for any reason, or that certain conditions will change
the home, how much work is needed on the property (could
that may impact your lifestyle.
you see yourself taking out additional loans to cover things like
This security can make it easier to plan for your future and consider renovations?), has the area experienced recent growth? What other
things like pets and children without the risk that your living long-term factors could impact the neighbourhood positively or
situation may dramatically change through no fault of your own. negatively?

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BUYING VS RENTING

Renting.
Pros Cons
Cheaper in the short-term The home will never be yours
In a lot of areas, the option of renting property is usually going to It’s true that at the end of day, the home you’ve been paying to live in
be cheaper, at least up-front if not week to week, than paying off will never be yours, whereas the mortgage repayments of the home
a mortgage on the same property. Not to mention that in most owner will mean the home will one day belong solely to them. Whilst
countries, the only up-front cost is usually a bond, a relatively small renting gives you flexibility, it can also mean that at a time when
amount of funds kept in a trust in the event the home is damaged or you’re looking to settle down, you don’t have the stability of a home
unreasonably worn at the expiry of the lease. of your own.

This also means costs associated with owning a home, like land/ You won’t be able to personalise yourhome
property taxes, building insurance and maintenance are handled by Things like renovations and home improvements usually can’t be
the landlord. done on your rental property unless negotiated with the homeowner
and even then, you might find that some things will be at your
Another plus is the ability to rent a home in a desirable suburb, close
expense or will mean that your rent could potentially increase.
to transport, offices, entertainment and other lifestyle amenities as
a rented home in these areas is usually within most peoples’ budget It could also mean that things like pets aren’t permitted, and you’re
versus the sale price of a home in the same area. restricted to looking for properties that will allow animals.

Flexibility So the look and feel of the home will usually not be up to you, and
One of the obvious pros to renting is the flexibility. That’s the if you’re looking for extras, like air-conditioning or ceiling fans, or
flexibility of not being locked into a long-term commitment, as you features like security screens, your landlord may agree to put these
are with a home you buy. At the end of your lease, you’re free to in only if you agree to a higher weekly rent amount.
move, or stay on if it suits. When it comes to selling a property you
Renting long-term hasits pitfalls
own, you’re faced with the prospect of selling the home for the price If you decide to rent until retirement, unlike a homeowner who very
you need, you’re up for the costs associated with this, and you’re at well may have paid off their mortgage and will now have no ongoing
the mercy of current market conditions. loan repayments to make, you will need to be able to afford rent
This kind of flexibility allows you to move jobs, travel or simply even after you leave the workforce.
change your mind about an area with the opportunity to move Depending on your other investments, and how well you’ve saved for
relatively quickly. retirement, it may be feasible to continue renting for life. But if you’re
In some areas, particularly popular ones, you may even be able to unable to continue renting in your area during your retirement years,
break your lease early if the property manager/landlord is able to you may only be left with the option of relocating to a less desirable
find a replacement tenant easily, or for a pre-determined fee. In area or a far more modest home.
some cases, there are even rental clauses which stipulate acceptable
reasons for breaking a lease, such as a job transfer.

Financial stability
When it comes to your monthly expenses as a renter, your budget can
be more stable than that of a mortgage holder. Without fluctuating
interest rates, taxes, and maintenance costs to worry about, and the
cost of rents generally only changing upon renewal of some leases,
you can potentially have more financial stability than a home owner.

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 YOUR COMPLETE PROPERTY BUYING GUIDE

It’s your choice.

At the end of the day, the decision to rent or buy is a very personal one,
heavily dependent on both your short and long-term plans and goals. For
most people, renting is the necessary option for at least a portion of their
lives, with home ownership the long-term goal.

“Weigh-up the
personal pros
and cons of your
situation to figure
out the best option
for you.”

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SORTING OUT YOUR FINANCES

Sorting out
your finances.
How much deposit will you
need to buy your home?
Most lenders will require you to have a 20% deposit for your home loan. For
example, if you wish to purchase a home worth $400,000, you would require
an $80,000deposit. However, most lenders have loan products to borrow up to
90%of the property value.

If you don’t have a 20% deposit and need to borrow more than the 80%
threshold you should speak to a mortgage adviser who can talk you through
your options. At ROSS REALTY, we’re thrilled to be able to provide you
with a complete service, from sorting out your finances, to moving into your
brand new home.

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 YOUR COMPLETE PROPERTY BUYING GUIDE

Budget Mortgage advisors

Create a budget to determine what you can realistically afford to Mortgage advisors or brokers can help you find the best deal from
spend on mortgage repayments. Your budget should include all lenders. Remember, mortgage advisors’ fees are paid for by the
your regular outgoing expenses along with estimates for the cost of lender, not you.
ownership of a home (insurance, rates, interest on your mortgage,
A mortgage advisor has the knowledge and expertise to find the
applicable body corporate charges and maintenance for your home).
best option to suit your individual needs. A home is one of the
These costs will vary depending on where you live and the type of
most significant investment decisions you will make and we’re
home you wish to buy.
here to make sure that you know the different ways you can
structure your loan and what the different lenders will offer you.

Mortgage calculator
Once you’ve worked out your budget, you can use a home loan
repayment calculator to get an idea of what your mortgage Financing your home
repayments would be.
Along with your savings, there are other sources of income that can
It’s probably a higher figure than you are used to paying in rent help to supplement your deposit. For instance, if you are a first home
but the benefit is that instead of being an expense, your mortgage buyer and meet certain criteria you may also be able to secure a first
repayment is paying off a capital investment. home owners grant. These differ from country to country and state
to state, so make sure you look up your entitlements. You may also
If you’re happy that you can afford to pay this amount each month,
like to consider entering a shared ownership agreement or enlisting
then you can start looking at financing.
the help of a guarantor through friends or family if you don’t have
enough savings or a high enough income on your own.

If you already own a property, depending on its value you may be

Pre-approved finance able to use the equity in your current home to help secure financing
for the purchase of your new property. Talk to your mortgage advisor
Approach lenders to get finance pre-approval so that you know what
about the options available to you.
price range you can look at for your new home. Given your income
and financial commitments, banks will provide a pre-approved
amount (to which terms apply) beyond which they would not lend.
This gives you a ceiling for the maximum you can spend on buying
your first home.

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 YOUR COMPLETE PROPERTY BUYING GUIDE

Doing your
research.
Onceyouhave yourfinances in place, you’veworkedout yourborrowingcapacity,andperhapssought
pre-approval onyourhomeloan,it’s now time to getto know themarket.

Start to look at neighbourhoods that would suit your needs and your budget. A great place to start is

online. There are lots of property comparison sites on the web which will give you an indication of the

average sale price of houses, land and units in an area.

“A great place to
start is online.”
Also take a look at how a neighbourhood has fared over the last five to 10 years. Have prices steadily
increased, stabilised or been in decline? These figures can help you to determine if the property will be a

good investment over the long-term.

Once you’ve found a location that fits your needs, and fits in with your average price range, start to look

at properties on the market. Compare features, price and land-size.

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INSPECTING PROPERTIES

Inspecting
properties.
Take advantage of an open home and use the time to perform a thorough
property inspection. Later on, you’ll want to engage the services of a
professional to inspect the building’s structure and for pests, but it’s a good
idea to use your initial tour of the home to perform your own inspection.

So what should
you really be
focussing on in
an open home?

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 YOUR COMPLETE PROPERTY BUYING GUIDE

The dwelling’s structure The neighbours

When inspecting a property, chances are the current owners are If you’ve got to the stage where you’re inspecting the property, then
going to present the interior of the property in the best possible you probably know a bit about the neighbourhood you’re looking
light. They will have cleaned and tidied, perhaps added a new in, but what about the neighbours? Take a look at the neighbours
coat of paint, or even had the home styled with beautiful furniture. on each adjoining border of the property for any clues you might
Whilst these things will help you to appreciate what the home could not be comfortable long term.
look like for you, at this stage, it’s more important to focus on the
•Are the neighbours’ yards neat and tidy? It might not directly
dwelling’s structure.
impact on the property you’re considering, but what about when
it comes time to sell the property? Would untidy yards next to

Some things to look

yours reflect poorly on the area?

for include:
•Do they have pets? It might not be an issue, particularly if you
have pets of your own. But look for problem pets. Is a neighbour’s
•Damage from pests. Recent termite damage in wooden structures dog barking non-stop during the inspection? Are animals loose
is a huge red flag. Have a look for bores through wooden frames, or roaming? Is there evidence of pet damage to shared fences or
or dirt tubes in the foundation or exterior walls that hint to termite common areas?
infestation. •Do you have a comfortable level of privacy? Take a look at
•Poor construction. Windows and doors that jar, or cracks in different angles around the home, particularly on smaller
the walls around doors and windows are both signs of poor blocks or apartments. Are you too close to neighbours? Can you
construction. easily hear them through the walls? Are certain windows placed
directly opposite a neighbour’s window? Is the property fenced
•Wetspots on walls or ceilings. Condensation within the home can
off from neighbours?
lead to mould build-up, timber decay, leaks, corrosion and even
loss of structural integrity.

•Cracks in the foundation. Some small cracks in a home’s

foundation can be harmless, but large cracks either running down
the foundation or across could mean a home is shifting, which can
cause significant structural damage over time.

If you’re not entirely sure if what you’re seeing is cause for concern,
and you are interested in the property, the best course of action is
to enlist the services of a qualified building inspector.

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INSPECTING PROPERTIES

The location
Location means more than the general •Power lines over the land/property. Sometimes
neighbourhood. You may be attracted to the found on larger parcels of land, power lines have
area, but take a look at the property’s exact been known to drop property prices due to being
location for things that may bother you long- unsightly, sometimes noisy, and due to claims
term, hurt re-sale value, or cause lifestyle issues. that living close to them long-term can cause
Things to consider are: health issues.

•The property is on a busy main road: Houses on •The property is on a flood plain. Depending on the
main roads can attract lower prices than those city, the climate and the proximity to dams, lakes
on quieter, private and less congested roads. and watercourses, the potential of flooding on the
You’ll also have to get used to the noise of heavy property will be different. Be wary though, during
traffic. major floods, houses within the same street, let
alone the same neighbourhood, can be affected
•The property is next to a retail or commercial
differently depending on their position, the house
space. This can cause issues with local business
design, and hills and slopes.
traffic, and depending on the type of business,
and business hours, there could be additional These are just a few considerations to look
noise. Also be mindful of properties that are into when going through an open home. After
next to land that may be zoned as retail or inspecting a property, continue to do your due
commercial. Local real estate consultants should diligence. Start to research any areas you’re
know this information. still unsure of, and if you do decide the home is
the one for you, enlist the help of independent
•The property’s proximity to a train line.
property inspectors to cast a professional eye
A home close to public transport is always
over the property.
convenient, but a home that shares a border
with a train line, for example can cause a lot of
excess noise, potentially hurt re-sale value, and
cause safety issues for young family members
depending on fencing around the property.

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MAKING AN OFFER

Making an offer.
Once you’ve found the perfect property for you, it’s time to make an offer.
Depending on the type of sale, and even the state or country you live in,
the process of making an offer can vary.

“The best way to

make a formal
offer and avoid
any confusion is
to make the offer
in writing.”

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 YOUR COMPLETE PROPERTY BUYING GUIDE

How to make a formal offer

The best way to make a formal offer and avoid any confusion is other interested parties are putting in an offer. This system ensures
to make the offer in writing. A sales consultant will most often the situation remains fair to all parties in a multiple offer situation.
provide you with a contract to start the process which will also
The seller can accept your offer, reject it or counter sign it. Counter
highlight any conditions of sale. The consultant will then present
signing usually occurs when the seller is not satisfied with the price
this offer to the sellers.
offered and/or conditions included and subsequently alters them.
Common conditions of sale are subject to: The contract will be brought back to you for your consideration.

•Finance If you accept, you initial the seller’s alteration and the property is
under offer to you subject to any conditions that the contract may
•A builder’s report
contain. Alternatively you also have the right to counter sign. The
•Sale of another property consultant will continue negotiations between you and the seller
until you are both in agreement.
•Solicitor’s approval of the contract

•Specialist inspection or approval

The offer will be prepared on a standard approved contract and

you will be asked to sign the required number of copies. Once this
process has been completed the consultant will check whether any

After your offer is accepted

If your offer is accepted, and all parties have signed the contract you
will be asked to pay a deposit. This usually equates to 10% of the
purchase price.

Once paid, this deposit is held in a trust account until

the contract is confirmed, i.e. becomes unconditional in
all respects. It is then paid to the seller. If the contract does not
become unconditional the deposit will be repaid to you.

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MAKING AN OFFER

Selecting a solicitor / Completing the purchase

conveyancer Before settlement your solicitor or conveyancer will undertake the
necessary searches with respect to the property and your financier
You will need to nominate a solicitor or conveyancer to act on your
will prepare the mortgage documentation.
behalf once your offer has been accepted.
On settlement your solicitor or conveyancer will exchange with the
Your ROSS REALTY sales consultant can refer you to our
seller’s solicitor:
conveyancing business partners for your conveyancing needs, so
you can at least take some of the stress out of this important •Monies
process and rest assured that you are being looked after by a
•Transfer documentation
qualified professional.
•Keys to the property
.
Within a few days of settlement your solicitor, conveyancer or
financier will register the necessary documentation and mortgage
Property purchase costs transfer with the Land Titles Registry.

Financial fees vary greatly, depending on such matters as the Possession of the property usually takes place on the settlement
percentage of the property value that you will be borrowing, the day although the seller and buyer can agree for these dates to be
amount of the loan, the amount of the purchase and which bank different.
you are borrowing funds from. If you speak to your local Mortgage
One of our team members will contact you to arrange a pre-
Express representative you can quickly ascertain approximate costs
settlement inspection. This is your opportunity to ensure all
for your particular circumstances.
appliances at the property are in working order and that the
Possible expenses you may incur are: property is as you recall from the time you signed the contract.
If issues arise at this inspection, you should immediately contact
•Bank fees
your solicitor or conveyancer to postpone settlement until your
•Solicitor’s charges may include legal searches concerns are addressed.
(please consult your solicitor)

•Stamp duty on purchase

•Home protection insurance

•Miscellaneous costs (building inspection, rates, removals, etc)

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 YOUR COMPLETE PROPERTY BUYING GUIDE

Remember to cancel  Clearly label boxes containing breakables as ‘fragile’

and identify these items to the removal people
 Newspaper and/or milk delivery  Pot and pack away the plants and cuttings you’re taking
 Telephone, internet and cable TV  Explain your packing procedure to the removal people
 Gas, water and electricity (arrange a final meter reading) and be at your new home when they arrive

Organise for moving day Don’t...

 Obtain supply of boxes (the supermarket can be one supplier)  Put breakables or liquid filled containers in drawers
 Get packaging tape and heavy marker pens  Overload drawers and make furniture too heavy to move
(too much weight can damage furniture)
 Arrange for furniture removal (get quote, confirm time)
 Move netting, barbed wire, timber, wood, coal etc without
 Arrange care of your children on moving day
special arrangements being made
 Make suitable arrangements for any pets
 Store perishable goods where they might be overlooked
 Arrange transit insurance and contents and fire insurance
for your new home
 Organise shifting times with the purchaser of your old Make arrangements to
property and the previous owner of your new one
 See your solicitor to sign transfer documents /
mortgage discharge documents
Notify your change of address to  Enrol children in new school
 Coordinate the forwarding of any files from the children’s
 Bank, credit card and charge card companies
previous school to their new one
 Post office for redirection of mail
 Elections registrar
 Registrar of motor vehicles and drivers license Organise for your new home
 Tax department  Contact ConnectNow to connect your gas, electricity and
 Insurance companies telephone. Ask your consultant for details.

 Hire purchase or finance companies  Newspaper delivery

 Investment companies  Telephone

 Local council  Internet and cable TV connection

 Clubs and organisations  Gas, electricity and water

 Police (if you own and store firearms)

 Friends and relatives
The week before moving
 Magazine subscriptions
 Remind and confirm dates, times and locations for furniture removal company
 Doctor, dentist,accountant, lawyer
 Confirm moving in/moving out details and key exchange with
our friendly receptionists
Don’t forget  Say goodbye to neighbours

 Clean the stove and defrost the fridge/freezer

 Tidy the yard One last check
 Ensure that the chattels that have been sold with the property aren’t
accidentally packed  Nothing left behind?
 No clothes at the dry cleaners?
 Disconnect all appliances
 No gear stored away from your property?
 Disconnect the TV aerial
 Electricity, gas and telephone disconnected?
 Return any borrowed items
 Water turned off and no taps left running?
 Throw out items that you don’t intend taking with you
 Windows and doors latched?
 List valuable items for special care when moving
 Advise removal company of dangerous goods being moved  Keys with solicitor (if appropriate)?
(i.e.ammunition, petrol, spirits, chemicals)
 Securely pack all jewellery, money, special documents and papers (i.e. legal, tax,
insurance etc)
After it’s all over
 Set aside items you will need on the day of the move so you can take them with  Have spare keys cut
you (i.e. food, drinks, cleaning products)  Make an insurance claim if any damage has occurred
 Pack each room leaving the boxes stacked and labelled with the room they are during the move
to be moved to. It is a good idea to write on each  Teach children how to get to their new school
box a list of its general content  Enjoy your new home and keep in touch. We’d love to hear
how you’re going

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Your complete
property
buying guide
www.ROSSREALTY.com.au