Steps to Buy a Home in Australia
                     Steps to Buy a Home 
in  Australia
Huge investment is required in buying a home in Hampton Park 
or nearby  suburbs. Buyers invest emotionally as well as 
financially. The process of home  buying is probably one of the 
most life-changing decisions. It is a big decision  and requires 
careful considerations.
Whether you are a first-home buyer or you are looking forward 
to buying an  investment property, the process includes 
extensive research.
But apart from that, you would also need to follow the steps 
explained.
We have put together a ten-step guide to help you navigate 
the process of  buying a home.
Get Ready!
“Look Before you Leap”
This holds really true when you are buying a property.
Before you leap into finding your dream house, just take a 
breath and ask  yourself a big question i.e., Am I ready?
If you still feel that you are not satisfied and are somehow 
experiencing itchy  feet, it means you are not quite ready for the 
commitment at this time.
But, if you think you are all in and have everything in place, just 
go for it.
Check Your Finances and Budget
You must be wondering about the amount 
you can  borrow from a bank. Good 
Question Though!
However, the answer to this question is 
determined by  a number of factors.
A mortgage is a huge financial responsibility. 
To get a  good idea of where you stand, it will 
be best to have an  honest conversation with 
your accountant and figure  out what you can 
actually afford. If you are aware of  this you 
will be able to start searching for the property.
Consider the Cost of Buying a House
It pays to seek financial advice from a 
financial  advisor, accountant or lender. They 
can truly give you  a clear picture about the 
full costs associated with  buying a home. 
Here is a list of costs you are likely  incur
Deposit  
Stamp 
duty
Legal and conveyancing 
fees  Finance and 
insurance costs  
Building and pest 
inspections
Other costs that you must consider are 
ongoing  mortgage repayments, moving 
costs, utilities, home,  content insurance, 
council rates, strata fees, and  mortgage 
protection insurance.
Extra Costs Involved When Buying an Investment 
Property
It is essential that you cover maintenance, property management, insurance, land tax, 
council and water  rates, and body corporate fees.
Investigating Mortgages and Interest Rates
If you have your deposit ready, but you still look for something to shop around to find 
the right financing  for you. Just be careful and make sure you understand all the terms 
of the agreement. Find out about the  interest rate, term of the loan, whether you can 
redraw funds or not, can you make additional  repayments and are there conditions 
attached or not, and how often is the interest calculated?
If you do not have a deposit saved, full finance of the home purchase price may be 
an option by using  your renting history of savings as a proof.
There are two types of interest rates - fixed and variable.
Your financial advisor will help you in deciding the right option for you.
Get Home Loan Pre-Approval
Also known as conditional approval or 
approval in  principle, securing pre-approval 
loan even before  searching for your home 
is ideal because you will get  to know the 
price range.
All that you need to do is- provide your bank 
or lender  with your financial details like 
credit report, income,  investments, and 
savings.
They are the professionals who will help in 
reviewing  the information and granting you 
with pre-approval to  borrow up to a certain 
amount.
Choose the Suburb and Type of Property
What kind of area or location you want – have this clear in 
your mind.  Also, decide what type of property are you 
looking for.
The list of priorities may vary for singles, investors, and those looking to 
purchase a family home.  Make a checklist of all your non-negotiable, “must 
have” requirements. Like:
Location
Access to public transport
Is there established 
infrastructure?  Suburb 
Character
Also, figuring out what type of 
property is right for you; a 
house, unit, studio, townhouse, 
or acreage.
Buying an Investment Property
In case of buying the investment property, the factors are going to differ. First of all, you 
will have to decide  whether you want to fix it up and want to hold it or rent it out.
For strong capital growth, you would need to look for a property that will increase in 
value. This may take a  while, but it is better to look for the areas with high rental yields 
compared to the property price, research  recent sale prices, is there a strong rental 
demand? Also, look for tight vacancy. Look for the maintenance  cost, number of 
bedrooms, bathrooms, and parking spots.
Do You Need a Real Estate Agent or Buyer’s Agent?
For this, you must reach out to the local real estate agent and get information on the 
tips for buying a  house in the area, how the property market is performing, and so 
on.
Hiring a buyer’s agent is handy especially if you are looking to buy at auction. But 
they can also work  to find suitable properties for you, negotiate with seller, and also 
complete the background checks on  the property.
Conducting Property Inspections
As soon as you enter the home you are 
thinking to  buy, you will get an immediate 
emotional response,  either negative or 
positive. Just listen to what your  instinct 
says. If you feel negative, just walk out and  
positive feeling, then it is time to think about 
the deal.  Watch for the following things:
Damp or mould spots on the ceilings 
or walls.  Sagging ceilings
Buckling walls  
Doors and 
windows
Test the taps for 
flow  Check the 
floors  Take a 
look at sink
Check the hot water 
system  Roof, gutter, 
and drains
Exterior walls- check 
cracks, if any
Prepare for Purchase
A licensed conveyancer can request inspections and can also manage the exchange of 
contracts and other  legal searches.
Once you have got the home you want to buy, just get a property valuation done so that 
you can figure out  the right price.
After valuation, you will be ready to make an offer!
Decide about a figure, reach out to a real estate agent and let them know how much you 
are willing to pay  your deposit amount.
In the next step, just exchange the contracts and pay the deposit.
Both you and the seller have to sign the contract which would include the names of 
parties, property  address, purchase price, terms and conditions, special inclusions in the 
sale, and the date of settlement.  If you buy through a private treaty, you will have a 
cooling-off period but his will not be in the case of sale  made by auction.
During the cooling off period, you can cancel the sale if you change your mind, but you 
may have to pay a  penalty. The cooling-off period varies from state to state.
Between the exchange and settlement – generally, six weeks are there, and in this time, 
you should be  arranging the balance of the selling price and should be finalizing the 
finance and signing of mortgage.  You may also want to ensure your property. For that, 
you will be required to take out building insurance.
Once you pay the balance and the stamp duty, the settlement of the property is done. 
After this, you get the  keys and title deeds.
Move Into Your New Home
Now, you will be ready to move into your new place.
Sort out utility 
accounts  Pack your 
belongings
Employ the help of 
a cleaner (if you 
wish)
Do not forget to transfer the address on all your 
registered accounts  Organize for mail redirection too
FHB Grant (First Home 
Buyers Grant)
If you and your partner haven’t ever bought a property before, there is a fair 
chance that you are  eligible to receive the First Home Owner Grant (FHOG).
What is First Home Grant?
FHOG is a national scheme but every state funds its own and the amount varies 
from state-to-state.  The government determines if you can receive the grant based 
on whether you have purchased a  home or investment property previously, or 
whether your spouse or partner has too.
To get First Home Grant, you are required to submit your application within 12 
months of purchasing  your new home.
Get In 
Touch
PO Box 137 Lynbrook Victoria
0425843786
[email protected]
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