10 Things to remember when buying a property in Parramatta

West­ern Sydney is an extremely attract­ive area of Sydney with its lus­cious green parks, diverse neigh­bour­hoods, upcom­ing sub­urbs and new hous­ing devel­op­ments. All these things make West­ern Sydney an attract­ive place to buy a prop­erty how­ever some buy­ers and investors alike get so wrapped up in the excite­ment of buy­ing a prop­erty that they make a bad decision about the prop­erty they choose to pur­chase. Often they don’t even real­ise they have pur­chased the wrong prop­erty until they go to sell it or try to lease the prop­erty many years later.  When buy­ing real estate, there are anom­alies to be aware of so, whether you are buy­ing an invest­ment prop­erty or your dream home or apart­ment, here are ten things to remem­ber when buy­ing a prop­erty in West­ern Sydney:

1) Do your research and choose your area care­fully to fit your lifestyle. 

Know what you’re really buy­ing and what it’s really worth. Is it attract­ive to other buy­ers and ten­ants – close to work, leis­ure, schools, shops and trans­port? Will you have the life­style you want? Are you going to live there for a few years or a life­time? Don’t buy the cheapest prop­erty in the cheapest area. Buy the right prop­erty that fits your life­style at the right price.

2) Get your loan pre-approval.

Sort out your fin­ance before you start search­ing for prop­erty (even if it’s only a con­di­tional loan approval) as this will determ­ine how much you can bor­row and ulti­mately how much you can afford to pay for a prop­erty. Also make sure you have an emer­gency cash buf­fer so you can meet your loan repay­ments if interest rates rise or pay for any unex­pec­ted repairs or renovations.

3) Con­sider factors that may affect the value of your home.

Busy road? Beside a school? Far from shops and schools? When you inspect a prop­erty just once or twice before buy­ing, some of these factors may not be appar­ent. For example, a quiet road on a week­end may turn into a busy road dur­ing the week. A house beside a school may have con­stant park­ing and traffic flow dur­ing the week but be quiet on the week­end. The nearest shops or school may be a 20 minute drive each way. Make sure you do your research around the area and you take your time to con­sider all these factors when decid­ing on a prop­erty to buy.

4) Look at Neigh­bour­ing Properties.

Check out your street and see who your neigh­bours are so you get a feel of the type of neigh­bour­hood you will be liv­ing in. Also check with the local coun­cil to ascer­tain whether there are any out­stand­ing devel­op­ment applic­a­tions on neigh­bour­ing prop­er­ties or gen­eral devel­op­ment in the area. You don’t want to dis­cover that your open space views are going to be blocked by the neigh­bours adding another storey to their house or that a child care centre is open­ing up next door.

5) Get Build­ing, Pest & Strata Inspec­tion Reports.E&G Legal is a boutique law firm located in Parramatta, Sydney's second CBD

Get a Build­ing and/or Pest Inspec­tion done on the prop­erty before you make an offer on a prop­erty. Although these reports will cost you, the bene­fit will far out­weigh the cost. These reports are very use­ful and allow you to nego­ti­ate the pur­chase price as they give you insight into the con­di­tion of a prop­erty from an expert’s per­spect­ive. If you are buy­ing an apart­ment, you also need to do a strata search to ensure the fin­an­cial health of the body cor­por­ate and the apart­ment com­plex. Strata Reports will also give you inform­a­tion the amount of strata levies you can expect to pay every quarter when pur­chas­ing within a strata complex.

6) Review the Contract.

Make sure you have the right soli­citor or con­vey­an­cer review the con­tract before mak­ing an offer or attend­ing an auc­tion. Review­ing the con­tract prior to auc­tion or the expiry of the cool­ing off period gives you the oppor­tun­ity to nego­ti­ate with the vendors for things such as: the deposit (5% instead of stand­ard 10%) and the time­frame of Review of the con­tract will also alert you to spe­cial con­di­tions that may identify issues with the property.

7) Be pre­pared before attend­ing Auctions.

As dis­cussed above, before the auc­tion have your soli­citor review the con­tract, carry out the build­ing and pest inspec­tion and have your loan approval in place (and in writ­ing!). If you are the win­ning bid­der at an auc­tion, you need to be aware that there is no cool­ing off period like there is when buy­ing via private treaty. You also need to pay the deposit, usu­ally 10% by either per­sonal cheque or a deposit bond, imme­di­ately fol­low­ing the auc­tion so make sure you have the deposit ready.

8) Factor in Stamp Duty.

Stamp duty is a tax that is pay­able by the buyer when pur­chas­ing a prop­erty. It is pay­able within three months from the date of your exchange of con­tracts or on set­tle­ment (whichever comes first). It is import­ant to factor in stamp duty when you are cal­cu­lat­ing your budget as the higher the cost of the prop­erty, the higher your stamp duty. For example, the stamp duty on a $1,000,000 prop­erty in NSW is $40,490 which is a sig­ni­fic­ant amount of money that you must factor into your costs. To cal­cu­late your stamp duty in NSW, visit the Office of State Rev­enue NSW web­site.

9) Con­sider Land Tax.EG LEGAL ERIKA JASAREVIC and JAMILLA (GIA) GHAZI

You may need to pay land tax if you own prop­erty in NSW that is not your prin­cipal place of res­id­ence i.e. you are plan­ning on rent­ing out the prop­erty. In this case you may be liable for land tax if the land value (not the property’s mar­ket value) exceeds the cur­rent duti­able land value threshold of $482,000 (2016). To see whether you are liable for land tax, visit the Office of State Rev­enue NSW web­site.

10) Renov­a­tions are Expensive.

Be aware that build­ing and renov­at­ing any­where in Sydney is expens­ive. It can still be an excel­lent option with prof­it­able returns for buy­ers to buy a fixer-upper. How­ever it is import­ant to do your home­work and know the approx­im­ate costs of renov­at­ing and or build­ing and factor them into your pur­chase price. You don’t want to buy a renovator’s delight and then be sur­prised by the con­tractor and trades­men quotes after it’s too late. For renov­a­tions, be pre­pared to pay $3,000 — $4,000 per square metre (sqm). Obvi­ously you can pay more or less than this depend­ing upon the qual­ity of the work­man­ship and the fin­ishes you select how­ever con­sider it a guide when doing your ini­tial calculations.

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia