Things to Check Before Buying a House in Australia

The purchase of a house in Australia is likely to be the largest financial choice you are going to make in your life.

But still, there are plenty of buyers who will run through the process, bypass the due diligence, and suffer some ugly surprises, such as, broken foundations, faulty wiring, or a zoning problem that scuttles their renovation plans.

Don't be that buyer. These are the things that you should actually look into before you put a signature on anything.

Get a Building and Pest Inspection — No Exceptions

This is non-negotiable. You should have an independent building and house inspection of a licensed inspector before purchasing a house in Australia and not the one the agent recommends.

Problems with structure, water, roof problems and pest activity (termites are a major problem in Queensland, NSW and Victoria) will be identified by a good inspection. A combined report will cost around 400-700 dollars and will be worth reading all pages of it, not only the summary.

In case the report identifies serious problems, then present it as a bargaining instrument or terminate the entire agreement. Both of these are better than finding out that there is a problem of 50000 dollars after settlement.

Run the Legal Checks Before You Fall in Love With the Place

Emotional attachment to a property is easy to get before you have even done the legal preparation. That's a mistake. See a conveyancer or solicitor to look at the contract of sale and then make the offer. They will look into the ease, caveats and any rates outstanding and any limitations on what you are allowed to do with the land. Some states such as Queensland have a 5-business-day cooling-off period, but in other states the regulations vary and so be aware of the procedure in your state.

Also compare the valuation of a house with the price you are being quoted. The lender will have their own valuation done, however, by having an independent property valuation checklist carried out, you will have a better idea as to whether the price they are asking is fair in that suburb and street.

Research the Suburb, Not Just the Street

A home survives inspection and the legal examination is clean - fantastic. However, have you ever investigated the region?

• Look at recent sales data of similar properties around.
• Check on infrastructure plans - is there a new highway, train or development suggested which can increase/decrease liveability or value?
• Most state planning portals do have flood maps and bushfire overlays available publicly, and are worth a look, at least in the regions.

Talk to neighbours if you can. They will tell you what the listing will never tell you, noise, parking problems, problem houses in the area. It is an outdated thing to say, but it is effective.

The trends in the Property Markets of Australia are enormous depending on the suburb and even on the street. A 10-minute commute can be a 200,000 variation in cost and an entirely different course of development in the future.

Don’t Skip the Strata Report If It’s an Apartment

When purchasing a unit or townhouse the strata report is just as significant as the building inspection. It informs you of the financial well-being of the owners corporation, any outstanding conflict, special levies ahead and maintenance records.

You may be struck with a special levy of $15,000 six months after you have moved into a building which has a low-funded sinking fund. That is not a conjecture, that occurs on a regular basis. Request a minimum of two years of meeting minutes and go over them.

Where to List Your Property on Dealin — Without the Big Platform Price Tag

After you have done your due diligence as a buyer, it would help to be aware of how you can sell, as well, particularly, in the case of selling your current place to finance the purchase. It costs only $79 to list a residential property on Dealin, and most of the mid-range homes of between 200k and 999k are listed at only $99 to 149. It does not have a success fee or a withdrawal fee, you pay once, at the beginning and that is it.

Make that against Domain and realestate.com.au where real estate agents are charging listing fees in the hundreds or even thousands routinely. Dealin provides the options of private sellers and agents an alternative that is transparent and affordable with no guesses on costs. When you are selling something before you buy it, or are selling an investment property, it is worth doing the calculations of what a flat-fee listing would save you.

The Bottom Line on Buying Smart

A buyer property checklist is not box-ticking as it may make the difference between a fantastic purchase and an eye-opening lesson. Get the inspections completed, have the solicitor check out the contract, investigate the suburb and get the report read out completely in case it is a strata property.

The Australian property market rewards home doers. The ones who miss it are likely to discover why that is important at the most inappropriate time.

Looking to sell or buy your next house? Go to Dealin.com.au and search Property in Australia, without hidden costs and charges.