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Buying

 Quick Summary

Most young people dream of owning their own property. Nearly 70% of Tasmanians either own their home outright or own with a mortgage. If you are thinking about buying your own property there are many options for you to consider. You may want to buy land and save to build on it or buy and build straight away. You may choose to buy an existing property. Whichever way you decide to go, there is a lot to learn about to get prepared for home ownership.

You can choose to:

  

To buy property you will need:

Money (sufficient personal funds, or home loan/mortgage) to cover the price, stamp duty and fees for:

– independent financial advice;

– a solicitor or conveyancer;

– qualified inspector/surveyor/architect for a pre- purchase inspection certificate;

– a land information certificate (337 certificate).

If you buy a home you will have to pay:

– deposit (at least 10% of the price);

– stamp duty (this amount varies but is generally a few thousand dollars);

– various property inspections & clearance certificates (eg. building, pest, land).

Options for buying include:

– Buy land and build on the land

Build according to the National Construction Code and Tasmanian Building Regulations (2016).

You may be eligible for assistance to buy land and build, or buy a newly built home through the Housing Tasmania HomeShare program. This program allows you to share the cost of buying a home with the Director of Housing Tasmania.

Land and home package deals may be a cheaper option.

Using partially or pre-constructed Kit Homes may be a more economical and quicker way to build your home.

– Buy an existing property

This could be through a real estate agent, a private sale, or at auction. If you want to buy at auction, you must register with the auctioneer (usually the real estate agent).

Housing Tasmania offers homes for sale through the Streets Ahead program. This program offers current tenants of Housing Tasmania the opportunity to buy the property they are renting from Housing Tasmania.

Steps to buying or renting through Housing Tasmania:

◊ Register with Housing Connect. Housing Connect will assess your eligibility to obtain property for renting or buying from Housing Tasmania.

◊ Housing Connect will talk to you about the kind and size of the property you are entitled to and level of housing need (how urgently housing is required).

◊ Based on the information you provide; available properties will be reviewed for allocation.

◊ Properties that match your requirements will be allocated and offered for your consideration. If buying, you may choose from Housing properties that are available for sale.

– Buy into co-operative or co-housing or consider joint ownership

It is a good idea to use a conveyancing lawyer to help you with this kind of purchase. Your real estate agent may be able to recommend a lawyer, or ask a friend or family member if they can recommend someone they have used.

 

GET STARTED

If you are buying a home for the first time, you may be eligible for the First Home Owner Grant (Tasmania) FHOG. Go to the First Home Buyers Australia website to test your eligibility and see if you’re financially ready to buy a home in an area of your choice

Free financial counselling is available through Anglicare. They can help you to work out whether you can afford to buy a house and explain what is involved financially. You can contact them 1800 007 007 to talk to a counsellor or make a time to meet in person.

You may be able buy a newly built home through the Housing Tasmania HomeShare program. This program allows you to share the cost of buying a home with the Director of Housing Tasmania. For more information, visit the HomeShare program website.

Housing Tasmania also offers homes for sale through the Streets Ahead program. This program offers current tenants of Housing Tasmania the opportunity to buy the property they are renting from Housing Tasmania. For more information on the program visit the Streets Ahead Incentive Program page

ACTION STEPS

Here you can find a simple list of the best actions to take if you are interested in this topic:

1 . Work out what you can afford to buy. If necessary, apply for a home loan or mortgage.

2 . Express an interest in the property, and/or make an offer. There is no “cooling off period” in Tasmania.

3 . Get written approval of finance from your lender or bank, and/or ask for the contract to be conditional on approval of finance.

4 . Ask for building, pest and/or land inspection certificates. If you make an offer, ask for the contract to be conditional on receipt of these certificates.

5 . Once you, the buyer, and the seller have signed the contract it is legally binding.

6 . You will need to pay a deposit. This is usually around 10% of the purchase price, but can vary depending on your lender.

7 . The deposit may be paid into a trust account until settlement.

8 . Include in the contract that you will inspect the property the day before or morning of the date of settlement to ensure the condition of the property is the same as when the contract was signed.

9 . Settlement happens when the purchase price (less the deposit) and stamp duty (transfer duty) and any other relevant fees are paid to the seller or agent.

10 . After settlement you may have access to the property - collect the keys if applicable.

11 . After settlement the seller will lodge transfer of title with the Land Titles Office. It may take a while for transfer of title to come through. The estate Agent or conveyance lawyer will let you know when transfer is through. You will receive a copy of the title deed in your name.