There are many options of how to buy my home in Australia.  They are, the conventional way of buying through a sale agreement, by auction, buying bank repossessed house, using the ‘rent to buy’ method or through vendor finance.  More and more innovative programs are designed to help home buyers who may find it difficult to qualify for housing finance.

Conventional buying

If I decide to buy my home through the conventional way, I will find a home, make an offer and pay a deposit which will be held till the time your contract is prepared. If I back out I can get back the deposit amount. The sales contract will be subject to actual inspection of the property. I will be prepared to meet the expenses of legal fees, taxes and mortgage arrangement fee etc. which usually amount to 5 percent of the purchase price of the home.

Buying in auctions

I can also buy my home in auctions in Australia.  I will attend a few auctions to get the feel of participating in auctions.  I should have 10 percent of the value of the home as deposit on the day of auction.  This deposit is non-refundable if you opt out.  If I am the successful bidder, I should pay this deposit immediately on the spot.  I will also visit the property that I have identified before the auction day to conduct surveys, pest inspections and searches that are required.  I will also arrange financing for the value of the property.  The most importantly I will set a maximum limit for my bidding and stop bidding above this limit.

Buying a bank repossessed home

Buying a bank repossessed home is a complex process so I must be well prepared with the funding arranged well in advance. I should have a certificate from the home loan lender that I have my mortgage agreed in principle. I will also inspect the home and check the location if they suit me. I will get appraisal done to know the value the home that I am interested in. I will make sure that I can make payments for the home comfortably.  I will have to participate in an auction so will be well prepared in advance. If I win the auction I will have a solicitor to handle the paperwork to make sure all the legalities are followed. I will seek the advice of licensed professionals if I come across any doubts or concerns when I buy my home from one of the repossessed homes.

Buying home through non-conventional methods

Many innovative programs like ‘rent to buy’ and ‘vendor finance’ are available for home buyers who may not qualify for traditional funding for home buying. Landlords of homes are willing to sell their houses in these ways and agree to receive the sale proceeds in a deferred way. These contracts are legally binding and have a different set of terms and conditions. Many home owners are also willing to finance the buyer with a different type of agreement.  I can use one of these methods if I am unable to save enough or do not qualify for conventional home loans to buy my home.