Talking to a financial advisor or broker to find out how much you can borrow first is always a good first step. This ensures when you are looking at land for sale and display houses, you know what your budget is and this can help narrow down selections of blocks of land, house designs, what inclusions you want to include when building.
If you are a first home buyer, you may be able to receive a grant towards the purchase of a new home.
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A finance pre-approval letter will be required from your bank or financial institute at the time of signing a contact. This letter will basically indication a bank is willing to give you a loan, up to a specified amount. If there is a homesite you like, please give us a call and we can place that homesite on hold while you speak to your bank or a broker to obtain one.
The Australian Government has guidelines for overseas residents wishing to buy land within Australia. If you are not a permanent resident of Australia, ensure you check with the Foreign Investment Review board for requirements.
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When signing a contract you will be required to advise who you wish to act on your behalf to arrange the transfer of land title into your name (making you the legal owner of the property). They will also be able to help guide you through the process of buying land and advise you of which document you are required to sign and when and ensure a smooth settlement process. If you do not have a preferred settlement agent, Kingsford’s preferred settlement consultant can be appointed to act on your behalf also.
When looking at home designs there are two ways you can handle it, choose your homesite first, to ensure you get the location, aspect or size you want; or, choose the house design first and then find a homesite to fit the house you like.
There is no right or wrong way, it’s purely a personal preference. When comparing builders’ quality, prices and inclusions, if you have chosen your homesite, ensure you take along the dimensions of your homesite to ensure the house design will fit, or ask the builder to look at potential ways to make it fit. Remember you are allowed make changes to house designs. There could be elements you may like better from another design, however speak to your builder about how to create your dream design.
Kingsford will require a $3,000 (three thousand dollars) deposit to secure your land, at the time of signing your land contract. Your deposit is held in a trust account until settlement. Should your formal finance be declined, you will receive this deposit back upon receipt of a formal letter from your bank or financial institute.
When you have selected which homesite you would like to purchase please give our land sales consultant a call to book in a time to fill out a contact. You will be required to sign a contract to purchase land known as an offer and acceptance contract. The offer and acceptance contract is a legal document entered into by the buyer and seller for the purchase your new homesite. It will include the purchase price, details of any finance required, offers or incentives offered by the developer, settlement terms and any additions to the contract, called annexures. The annexures include details of the subdivision and your specific homesite as well as any building guidelines for Kingsford.
Once you have signed an offer and acceptance contract with your land sales consultant, it will be send off to be signed (accepted) by the seller.
- A fully signed copy of the offer and acceptance contract will then be issued to yourself and both settlement agents with the land developer;
- contract acceptance by the developer (at this point you usually have approximately 7 weeks to gain unconditional approval);
- appointment of a Settlement Agent (they organise the transfer of the title into your name and will guide you through the purchase process); and
- signing the contract to purchase a house with your chosen home builder.
Once you have signed your contract you will be required to apply for formal finance approval and there will be certain things your back or financial institute will require. Below is a checklist of these items:
- Proof of income - original pay slips for the required time frame by your bank. If you are self employed, your financial statements with tax returns for the last two years are usually required.
- Any other income or expenses. This may include trust income, Centrelink benefits, Family Law Court agreements, share dividends or other investment income.
- Expenses - including copies any existing loans, credit card statements, general living expenses.
- A copy of your offer and acceptance contract to buy your new home site.
- A copy of your building contract.
- If you want to borrow more than 90% of your property's value, many banks and lenders will ask you to show genuine savings. This means money that you have saved in a savings account for at least 3 months. It does not include money from a first home owners grant, and most banks do not accept a money gift from parents, or proceeds from sale of a car as proof of 'genuine' savings.
Please speak to your financial institute for full details.
Transfer duty or stamp duty is the amount of tax you'll pay on any property purchase. How much it will cost you depends on a number of factors, including whether you've bought a home before.
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