Property Purchase

AustAsia Real Estate Pty Ltd (ACN 008 954 283) is a licensed Real Estate and Business Agent (no. 1736), which is regulated by the Real Estate and Business Agents Supervisory Board.

The Company provides an array of Real Estate services across commercial, retail, industrial and residential property including:

  • Property Management
  • Property Acquisitions
  • Property Disposals
  • Property Consultancy
  • Property Development

An associated Company of the AustAsia Group, Australian Real Estate Investment Limited is licensed to provide syndication and property trust administration services.

Tips for Buying Property

Whether you are buying a property for you to live in, or buying an investment property, the purchase of a property is a big step. Some tips that may be of some assistance include:

  • Financing the Property Purchase
  • Elements of the Contract
  • Purchase Conditions
  • Settlement
  • Insurance

Remember, when purchasing a property, the Real Estate Agent is obligated to the Seller... not the buyer. AustAsia Real Estate can assist you in purchasing a property, by providing consulting services and acting on your behalf to ensure that the contract is in your best interest.

Financing the Property Purchase

The first step for buying a new home is to see how much you can afford. AustAsia Finance Brokers can assist you in determining how much you can borrow and deciding which type of loan will best suit your needs and objectives.

AustAsia Finance Brokers can assist in obtaining finance for an existing house, investment properties, commercial properties, and building finance.

Elements of the Contract

In Western Australia, property is typically purchased through the Offer and Acceptance process except for Auctions. Once an Offer is Accepted by the seller and the contract becomes unconditional, the contract becomes fully enforceable at the price and conditions that are detailed on the contract.

Some of the key elements of the Contract include:

  • A description of the property
  • The sale price
  • The settlement date
  • The amount of deposit that needs to be paid on acceptance of the Offer
  • Any conditions that you make the contract subject to
  • The amount of finance and where you intend to get the finance (eg. your finance broker - we recommend AustAsia Finance Brokers)
  • The time frame in which the finance approval must be obtained
  • The time frame to clear certain conditions
  • The Settlement Agent that both parties propose to use

AustAsia Real Estate has a number of tips that are important for entering a property contract in Western Australia. Please contact us to discuss how we can assist you in preparing the property.

Purchase Conditions

We recommend that when purchasing a property, make the property subject to conditions that are suitable to you. You can make a contract subject to almost anything, but remember, the other party must agree to the conditions. Some typical conditions include:

  • Subject to finance
  • Subject to a satisfactory building inspection
  • Subject to a satisfactory termite inspection
  • Subject to the chattels, fixtures and fittings as seen on the date of inspection
  • Subject to all electrical and plumbing items to be in good working order prior to settlement
  • Subject to all council and regulatory approvals on all building and renovations
  • Subject to builder's warranty insurance (for new houses and renovations over $12,000 such as a pool or pergola)
  • Subject to approval by the Foreign Investment Review Board (if an overseas buyer)

In Western Australia, once all of the conditions of the contract are satisfied, the contract is binding and is typically very difficult to be relinquished.

Settlement

Once the contract has been finalised you will be dealing with both the Real Estate Agent and your Settlement Agent. A Settlement Agent is responsible for legally transferring property ownership from one party to another. It is important that you have a good settlement agent on your side to ensure that everything is done competently. We recommend Master Settlements - they are competent, thorough, experienced, and it is their policy only to represent the interests of one side (your side)... this way, there is no conflict of interest (between the buyer and the seller).

Insurance

There are several insurance issues that you need to consider:

  • Builder's Warranty Insurance (if purchasing a new property or any property improvements over $12,000, such as a pool or pergola)
  • General Insurance of the property... most lenders will require that you have property insurance prior to settlement
  • Lenders' Mortgage Insurance... this may be required by some lenders, depending on how much you are borrowing and at what ratio to the value of the house (Loan to Value Ratio)

Whilst we do not provide these insurances, we recommend that you contact us to discuss your insurance needs and we can refer you to our preferred insurance broker.