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Frequently Asked Questions

Buying A Property FAQs:


I am an overseas student. Can I buy a property in Australia to live in while I’m studying here?

If you are studying in Australia on a Student Visa you will need to obtain approval from the Foreign Investment Review Board before you can purchase property in Australia. You can find out more information at www.firb.gov.au

How much stamp duty will I have to pay when I buy a property?
The stamp duty you will have to pay depends on a number of factors including which state you’re purchasing in, the property value, your home loan amount and whether you’re going to live in the property or rent it out. In addition, first home buyers receive stamp duty concessions in most states. Use our handy calculator to obtain an indication of how much stamp duty you can expect to pay.

What are the on-going costs of a strata title property?
Owners in a strata-titled property have to pay a strata levy (quarterly, half yearly or yearly depending on the body corporate) that goes towards managing the building, including caretaking, insurance, public liability and sometimes a sinking fund. (A sinking fund provides finance to carry out works that may be required in the future). If a sinking fund doesn’t exist, or is insufficient to cover the cost, you may also have to contribute (by way of a special levy which will be struck by the Body Corporate) towards any major works that are required – for example re-roofing, painting etc.

Before purchasing a strata title property, you can ask your solicitor or conveyancer to check the body corporate records to verify actual running costs. And if you’re concerned about the possibility of major works in the future, order an independent Strata Inspection Report or building inspection prior to purchase. Bodies corporate may not always be obliged to disclose planned works to potential buyers.

In addition to body corporate fees, you will also have to pay the on-going costs of your property – council rates, water rates and utilities etc.

 
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Own Your First Home team of experts is available to guide you and answer any questions you might have regarding the process of buying your first home.

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We’ve found the house we want to buy, but it is currently rented out for another 6 months. If we proceed with the purchase, can we ask the tenants to leave, or do we have to wait until their lease expires?
Your solicitor or conveyancer will be able to advise you, so should speak to him or her first. However, the terms of the tenancy agreement should state whether the Landlord has a right to terminate the tenancy agreement upon sale of the property. This has to accord with the Residential Tenancy legislation in your state.

Your solicitor / conveyancer can check the conditions of the tenancy agreement and, if it provides for termination of the tenancy, request that it be made a condition of the Contract that you have vacant possession of the property at settlement. That may mean that settlement takes a little longer than usual, because it will have to allow time for the landlord to give notice.

If the legislation and the tenancy agreement does not provide for termination of the tenancy upon sale of the property, you will have to purchase the property subject to the tenancy and then give the tenant the requisite notice to vacate. In this instance, you may want to check if the seller will agree to settlement taking place when the tenancy ends.

Our vendor postponed the settlement date. What are our rights? Can we ask for our deposit back
The first thing to do is to check with your solicitor / conveyancer whether the contract makes provision for the issue of a Notice to complete. If that is so there is normally no penalty on the vendor for delaying settlement.

You then have several options to consider. Once the settlement date has passed, you could instruct your solicitor / conveyancer to issue the Vendor with a 'Notice to Complete' requiring that settlement take place within 14 days from the date of the notice (including weekends and public holidays). It is industry practice to allow an addition 2 business days for service of the Notice. If left unsettled, you then have the right either to terminate the contract and claim back your deposit or you can apply to the Court to have the vendor complete the agreement and hand over possession.

Disclaimer: This information is provided for your information only and should not be construed as provision of advice. Whilst every effort has been made to ensure that the information contained is accurate, the information should not be relied upon or used as a substitute for independent professional advice.. We strongly recommend that you seek independent professional advice specific to your individual circumstances