Some people believe that buying a home in Australia or anywhere else in the world is too risky right now given the current world economic situation. However, this doesn’t mean that it is impossible to get a good deal on a new home or home loan, especially considering the fact that Australia’s economy has continued to grow, albeit at slower rate.
Still, buying a home can be a tricky ordeal, especially if you’ve never bought a home before. There are real estate agents, banks, mortgage brokers, lawyers, and contracts to deal with, and the whole process has its own unique set of terminology that needs to be used and understood by all involved parties. Therefore, it is quite important that a potential homebuyer familiarizes themselves with home buying and to get the best deal possible.
One of the first terms you will probably hear is valuation. Valuation is what a professional appraisal firm has decided the property is worth. Still, this doesn’t mean that you will actually be paying this price, as the asking price may be higher or lower than the valuation.
When you’ve settled on a price, another thing that you must consider is exactly how much extra money you will be paying in terms of taxes. There will always be the requisite title fees, which are charged by the state or territorial government for various tasks and documents, such as new mortgage registration, title searches, and transfer of property ownership. The title fees are usually quite minimal in comparison with the stamp duty that you will be required to pay for the property.
Stamp duty is a tax levied on a newly purchased property by the state or territorial government. The amount you will be required to pay in stamp duty depends on both the purchase price of the property and which state or territory the property is in, as each charges a different amount or percentage.
Once you have completed the purchase of your new home, the final step is property transfer. This entitles filling out at a document with the Titles Office that confirms that the property has changed hands. Once this is complete, you will finally have your title deed that documents the property and states you own it.
If you have purchased a townhome or other housing unit within a larger building, you will only receive a strata title, which states that you own your particular unit but share all common areas with the rest of the owners within the same strata. Of course no matter what type of property you purchase, if you have a home loan or mortgage, the bank will hold onto the Certificate of Title for safekeeping until the loan has been fully repaid.
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Tags: Home, home loan, , interest rates, mortgage, properties, property, stamp duty, valuation
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