Buying property in NSW
A guide to what's involved in buying residential or rural property in NSW, including costs, finance options, ways to buy, what to look out for and property agent responsibilities.
This is a general guide that explains what's involved when buying a home or rural property in NSW.
Buying residential property
A residential property may be the most important and expensive asset you will acquire. Research, planning and patience are needed to make a successful purchase.
A checklist for buyers
Come up with a deposit to finance a home loan
Most people need to borrow to finance a home. This initially means coming up with a home deposit; then you need to shop around to find the right home loan.
Check eligibility for grants and discounts
Depending on your circumstances, you may be eligible for a first home owner grant or discount.
Understand upfront and ongoing costs
This could be helpful because there are multiple upfront and ongoing costs involved when buying a property.
Obtain conditional home loan approval
Make sure you have conditional home loan approval before you proceed further.
Location, location, location – what and where to buy
It’s important that you spend time researching the area you want to buy in, so you can decide which location is right for you and your situation.
Then you can settle on what kind of property to buy. Options include existing houses or apartments, off-the-plan units, townhouses or even vacant land.
Learn more about working out what and where to buy.
Understand the different ways to purchase
You will need to decide between buying a property at auction or private treaty.
Organise all property inspections and reports
You will need to arrange property and pest inspections and request any existing reports from the seller or seller’s agent. If you are buying a strata property, you should get a strata search report done before you buy.
Prepare to purchase
Before making an offer on a home, whether it's for sale by private treaty or at auction, make sure you carefully review the contract of sale
Buying rural land or property
Buyers need to understand a range of factors when purchasing rural land. These include:
- property agent requirements
- council approvals and zoning for current use and future development
- services, taxes and costs
- easements and
- environmental and access considerations.
Property agent requirements
Under the Property and Stock Agents Act 2002, a real estate agent can handle a purchase or sale of rural properties up to 20 hectares in size. Any property over this size, must be handled by the licensed stock and station agent.
Things to consider when buying rural land
Clearing sales
When buying rural land or property, ensure you know exactly what is being sold with the property. Many owners of rural land conduct a ‘clearing sale’ before selling.
These clearing sales or auctions are often conducted by the agent selling the property, but they are not a standard activity of agents. Any funds paid to the agent in trust for the owner of the goods are not protected by the Property Services Compensation Fund. Many sales are conducted on a cash only basis.
Settlement
The conveyancing process identifies any unpaid or outstanding expenses relating to the property, such as rates and utility fees.
These amounts become part of the final figure and are pro-rated. This means the:
- the seller pays any amount owing for the period up until the date of settlement
- the buyer pays any amount owing for the period after settlement.