When it comes to moving house, buying a brand new home is attractive to many of us. It’s a great option whether you’re a first time buyer, have a growing family or downsizing in later years. But – in an age when we’re schooled that buying property is all about compromise – this option is often quickly discounted, as it can feel unachievable.
However, homebuyers who manage to look beyond the common misconceptions – mainly that buying new may add complications to an already stressful process, and come with a premium price tag to boot – are now reaping the rewards. What seemed like an unrealistic notion at first is actually really quite achievable, with many hidden benefits.
For example, new homes offer the latest in design, style, comfort and quality – far removed from the days of dark, cramped terraces and functionally obsolete bungalows. New homes are thoughtfully and creatively designed to maximise light and space, with multiple living zones and plenty of storage areas. You rarely have that luxury with an older home.
New homes are also low maintenance, ideal for busy families. Imagine the relief of farewelling that endlessly growing list of home DIY tasks that you NEVER have time to tackle. You’ll save money and free up time to enjoy your home, rather than worrying about the next much needed improvement.
Opting for a new home may also save on energy bills. They are more energy efficient and environmentally friendly than older homes. Better technology and design means they are naturally cooler in summer and cosier in winter, so less heating and cooling is needed all year round.
For those considering buying a property as an investment, a new home offers a number of advantages. There is strong appeal for renting new homes, you are likely to find tenants sooner, often more willing to pay a premium in rent.
New homes also have a higher claimable depreciation value. Tax breaks are often what makes property investment profitable. And depreciation is one of the best breaks.
And of course you’ll have all the peace of mind that a warranty provides – on the structure, fixtures, fittings and appliances. So if there are any issues in the first few years, you won’t have to foot the bill.
Another often-unseen benefit is the support you’ll receive throughout the buying process, especially if you choose to buy new with a reputable developer and builder such as AVJennings.
The new home buying process is fairly simple, here are some handy tips from AVJennings to help you along the way:
STEP 1: Financing – before you start house hunting it’s helpful to know how much you have to spend. Check if you are eligible for any government grants such as the NSW New Home Grant Scheme. Conditions do apply and you can check these at www.osr.nsw.gov.au
Did you know: first homebuyers are exempt from Stamp Duty on property purchases, subject to the property value?
STEP 2: Conveyancing - appoint a solicitor or conveyancing agent. Once you’ve found a home you love you’ll need to arrange the transfer of property ownership and all necessary information required by your lending institution when the time is right.
Tip: Ask your legal representative to provide a conveyancing quote and confirm what that includes.
Now for the fun part!
STEP 3: Choosing your new home – this will be much easier if you have a clear idea of what you want and where you want it. Consider what’s important to your lifestyle.
Do you want:
- Large or small, 3 or 4 bedrooms with a study
- Single or double storey, single or double garage
- Sunny backyard, big spacious garden or low-maintenance area
- Close to transport, parks, schools, work, relatives, entertainment, retail centres
- Contemporary or classic façade style
More broadly the process will involve speaking to sales agents and lots of online research, before spending your Saturdays touring potential new homes and areas. You’ll need snacks and drinks for extra stamina!
Tip: Talk finance up front. Find out what you can afford and stick with it.
STEP 4: Pay your deposit – a deposit is required to take a home off the market. The deposit amount can vary, but generally it is either $1,000 or 0.25% of the purchase price of the property.
Tip: If you need legal representation call the Law Society of NSW or The Australian Institute of Conveyancing, NSW Division.
STEP 5: The contract - make an appointment with your solicitor/conveyancer to discuss the contract. Within 14 days of the contract being issued, you should exchange contracts. This involves signing the contract and paying the balance of the 10% deposit. Give the bank cheque to your solicitor/conveyancer, who will forward it to the solicitor acting for the vendor along with the signed contract.
Tip: Once you have exchanged contracts, there is no going back. So ask lots of questions and be very sure.
STEP 6: After the exchange - Contact your sales agent to arrange an inspection of your home prior to settlement.
Tip: At least 5 days before you move in, advise gas, electricity, telephone services and home insurance company of your settlement date.
STEP 7: Settlement - The balance of payment is due upon settlement. Your solicitor/conveyancer will contact your lender to confirm settlement details and arrange transfer of funds. Once settlement has been finalised, you can collect your keys for your new home!
Tip: Chill the champagne, put out the welcome mat, and settle in to your new neighbourhood.
Ultimately, it will depend on your budget and the property in question. Think about your personal situation, finances and long term plans before you take the plunge, and weigh up all options carefully.
Now you know how simple the buying process can be.
All you need to do is find your new home. And an AVJennings community is the best place to start your search.
At AVJennings we help people build brighter futures by creating communities they want to belong to and grow with.
We know everyone has different needs and wishes for the place they live. That’s why we offer a range of ways to get the home you want. You can buy a block of land, a finished home, duplex or terrace. We can work with your builder, or help you choose one.
We also know a home is part of a community, which is why we make sure parkland, play spaces and pathways are incorporated into every development. It’s why we locate our developments close to schools, shops and transport. It’s why AVJennings is your community developer.
For community locations across Australia visit avjennings.com.au