On the last day of the Australian financial year, my and my subjects successfully got the keys to the new house.
This is our first suite.
At home, neither of us has participated in the process of parents buying a house.
In a foreign country in Australia, the experience of buying a home from scratch is worth recording and sharing. After all, this is the biggest money I have decided to spend on my own decisions in the past 30 years.
The same tight “school district”
On weekends, when I was tired of going to and from the furniture city, I lay on the carpet and said to my target: “Do you believe it, we really bought our own house.”
He was also stupid and said: “We can see the chimney of the neighbor’s house.”
The two of them talked and talked, they were quite unreal, but they were happy from the heart.
The year before the age of 30, my mentality suddenly changed. I don’t know what to panic about, I feel that I can’t go on like this year after year. Just a few years of money, there is no financial fluster, and Brisbane, Queensland, Australia, housing prices have begun to show a downward trend, I and the object counted the money, decided to buy a house.
At present, we don’t have children yet. When we have children, we don’t know, but we still have to take the children into consideration when we buy a house. The “school district” has also become one of the considerations.
Mainly in the West District as the first choice, has lived here for 7 years, very familiar with the surrounding, and there are many good schools here.
The area is set, which is to choose which houses to look at. The factors we consider are: budget, public transportation, school district, supermarket/restaurant.
The down payment plus the bank loan is the price we can afford. No matter how good the house is over budget, we can’t drag the whole life down because of buying a house.
Although Australia is mostly driven by car, the convenience of public transportation is still our main consideration. Because I can’t drive, I am getting a bonus item near the train station or bus station.
I am in the school district because we do not intend to send children to private schools. In Queensland, the ranking of private schools is not high in Australia. I prefer to buy a house in a good public school school district than a cheap private school. Regarding the scores, rankings and other details of the school district and the school, we are looking for one by one on the government school district website to try to be worthy of the unknown children.
In Queensland, the ranking of private schools is not high in Australia.
Although driving can shorten the distance, there is a big supermarket near the house, and the convenience of living will be greatly improved. If there are several good restaurants, it is better. Of course, these are all points and the impact weight is not big.
Three bidding battles
We have a plan to look at it every weekend. In this way, we lasted for 3 months, and we continued to see the house from 9:00 in the morning to 3 pm on Saturday, and even crossed the east and west to see the house. Later, we simply did not make an appointment in advance, and arranged the viewing route based on the viewing time the night before.
The house has seen countless sets, and the moment to go to the official bidding contract, the real feeling of buying a house is completely unrecognizable. But the bid is a technical job and a psychological warfare, requiring practice and pre-research.
How to bid? Will it be pitted? Will the bid be high? Will you not buy a house?
We paid a total of three houses for the price, and the third time is the one that has been purchased. Although I felt that the first house was good, it was not love at first sight, so we decided to use it as an official quotation exercise. After watching the room on Saturday, I sent a text message to the agent in the evening, giving a quote higher than the price of 500 Australian dollars.
Ten minutes later, I received an intermediary reply, and the words revealed happiness: “Your quotation is very reasonable, and you can formally sign the contract on Monday afternoon.”
The reply from the intermediary did not give us peace of mind, but instead gave birth to more question marks: Is the offer high? Is it so fast to sign a contract? After signing the contract, then? Even if the house is bought?
Later, I realized that it was because the background knowledge was too little to understand.
So we have to add knowledge to the night, and after clearing the gods, we have a clear point: there is a conditional contract at the time of formal quotation. We need to sign the contract and have a cooling-off period before the contract takes effect. During this period, the contract will not be lost. money.
Now, we only need to rationally decide whether we want to sign a formal contract. After listing the advantages and disadvantages of the house and the follow-up costs, we asked each other: “If you finally buy at this price, would you feel bad?”
In the same breath: “Yes.”
The next morning I sent a message to the agent, indicating that the house was very good, but decided to not bid because of some family reasons.
We are the first home buyer, and the state government can enjoy a subsidy of 20,000 Australian dollars for this new house.
I liked the second house very much, and I watched it back and forth four times. But its shortcomings are obvious, only 10 meters away from the train track. It was not sold successfully in the first half of the market, and noise may be the main reason.
Compared with the first quotation, this time our research is more detailed. We applied for a free trial on the professional website, compared the transaction price of other houses in the same district and the average price level of the entire area and the residents’ report, and got a general understanding of the overall and local trends.
This time we will make a formal quotation directly with the sales staff after work on the working day. Before signing, the salesperson explained the contract one by one. This is the first time I saw a formal contract, and we learned a lot. In the middle, he mentioned that another family is interested in this house. I asked us if we want to increase the price several times. Because our offer is much lower than the price, he suggested that we raise the price a bit, so that there is more competitive advantage.
Asked for the third time, we sincerely and firmly said: “I am willing to pay the price on the contract. If someone buys this house with a higher bid, we are happy for him. But we will not be because of other buyers. Continue to increase the price.”
The next morning, we received an intermediary call and our offer was not accepted. We naturally lost some of it, but after thinking about it, insisting on the position did not let us fall into the fare increase cycle (it was later learned that the price of this house was 30,000 dollars higher than the selling price, which is difficult to distinguish). This is not a bad thing. More importantly, otherwise we will miss the offer of the third house and pass by the house of your choice.
The third house is the house that I live in now. I didn’t pay attention to it at the beginning because the price is over budget, but it is satisfactory regardless of the function of life or convenience.
Subsequently, we realized that we are the first home buyers. The purchase of this new house can enjoy the state government’s 20,000 AUD subsidy, and can ask the bank to apply for the loan and deduct it from the down payment. But for the sake of insurance, we are not included in the subsidy when we prepare for the down payment.
At the same time, we are still considering another house, the two sets differ by more than 100,000 Australian dollars, but the cheaper ones are second-hand houses, which cannot enjoy government subsidies. The two sets of down payment are similar, the main difference is the loan amount.
There are a lot of 100,000 Australian dollars, but according to the same loan interest, the difference will be spread over the 30-year repayment period. The amount of payment will have little impact on our quality of life. Spend it).
Measured from the left and right, natural selection can bear the most expensive and best set in the scope. After I decided to buy it, I also had the confidence to go to the counter-offer.
Finally, we purchased this suite for $550,000 – three bedrooms, two and a half bathrooms, and a garage.
Brisbane residential area
At this point we have not applied for bank pre-approval, but we have received a seller contract on the weekend. The contract mentioned that the cooling-off period is 5 working days, the 10% deposit needs to be completed within 3 working days, the loan is approved within 10 working days, and the loan is delivered 30 days later.
Who decides the amount of the mortgage?
As the loan manager said, buying a home is actually very fast, as long as you are fancy.
On Monday morning, I asked the loan manager to help us formally apply for a loan, including state government subsidies. In the afternoon, I received the First Letter from the lawyer. The email listed the important time nodes in the contract and listed many required to be filled out, signed and Notarized documents.
When the deposit is paid after 3 working days at the first time, you need to contact the bank in advance to increase the transfer limit for the day. In the case of the Commonwealth Bank of Australia, the telephone customer service can be adjusted to the A$100,000 daily transfer amount (which will automatically return to the original amount in a few days). Be sure to keep the proof of payment after the transfer is completed and send a copy to the lawyer.
The second time point is the bank’s completion of the valuation. Although the price is negotiated with the seller, the amount of the final loan is still related to the valuation. If the valuation is lower than the selling price, we need to prepare more down payment and vice versa. Of course, the lawyer also said: “If you are not satisfied with the bank loan plan, you can cancel the contract directly and the deposit will be returned directly.”
During this period, we also did some understanding of the bank’s valuation. “Half-year transaction price of surrounding houses” “whether it has been flooded” “whether there is noise” or even “whether or not air conditioning is installed” will affect the valuation results. Naturally, when the housing market is not good, the results of third-party valuation companies are relatively conservative, which also reduces the risk of bank loans.
Therefore, buying a house is not only a matter of preparing for a down payment, but also requires sufficient funds to turn around to alleviate anxiety. Fortunately, the final estimate is consistent with the contract price. After signing the contract, it officially became a “house slave” and proceeded to the next step as planned.
After receiving the officially approved mail from our loan, the lawyer sent us a copy of the payment before the delivery. In addition to the down payment, there are also legal fees, stamp duty, property registration fees and City Coucil fees that need to be prepared.
This is more than 10,000 Australian dollars. And the money needs to be transferred to the loan bank account, and the authorized lawyer will notify the bank to transfer money from the account on the delivery date.
Delivery day is coming
Before the developer handed over the house, we applied for a viewing. Although it is a new house, there is no need to ask a professional company for inspection, but we still hope that after the developer moves out of the displayed furniture, check the vacancy situation and measure the indoor size, because we have already started to book furniture.
There is also a small episode in the middle: on the original delivery date, because the developer’s banking affairs have not been processed, and the extension is due to the end of the fiscal year (June 30). Fortunately, we have got the specific size to catch up with the fiscal year discount season to complete the furniture reservation.
In Australia, the delivery is usually in the afternoon, and all formalities are handled by the lawyer, including contacting the bank to write a check for both lawyers.
After all the procedures for the delivery of the house are completed, the lawyer will send us a notification email to complete the delivery of the house, and finally the seller will contact us to hand over the key.
Finally, on the last day of the fiscal year, we ended the days of Saturday’s house watching for several months, ushered in a weekend of buying furniture and furniture.
Tips for watching the house
Is there a ceiling fan/air conditioner?
Australia’s air-conditioning installation fee is similar to the purchase fee. If not, you will need to add the purchase and installation costs to the total budget.
The total number of residential houses and whether there is a swimming pool?
We plan to purchase a Townhouse, both of which are related to property fees.
The swimming pool in the community means that the annual property fee is around AU$4,000, but the swimming pool is not a necessity for us;
The large number of residential houses means that the property fees paid may not be related to their own houses, and they must cope with the extra costs incurred for temporary maintenance.
These will affect the fixed annual expenditure of the house after buying a house.
Is it possible to be flooded?
There are many mansions along the Brisbane River, and the river is built to enjoy the best river views, but the flood insurance costs will allow me to step back three steps. Without insurance, it is necessary to prepare for the refurbishment costs of tens of thousands to hundreds of thousands.
How far is it from the rails or the main road?
The house is close to public transportation, and the advantage is that the convenience of living will be greatly improved, and the disadvantage is that the noise is large.
If you are close to the railroad track, you should pay attention to the noise in various situations when you look at the house, such as when opening the window, closing the window, closing the balcony door; it is best to go to the scene (outside the house) in the evening to feel the noise in the dead of night. It will be different.