5 Most Important Things to Know When Buying a New Home in Sydney
25 June 2021The city of Sydney is a very active, innovative and beautiful metropolis with bright sunshine during most of the year. It offers spectacular beaches and harbour areas along with attractive and affordable housing. All of these benefits can be enjoyed within 10 km. of the city’s centre and business hub.
Yet there are important aspects of buying property in this city that is unique to Sydney. Whether you are investing in property or buying a new house, condo or apartment, you may need some assistance to ensure a smooth, successful property purchase.
Five Essential Facts to Know When Buying a New Home in Sydney
The five most important facts to know as a new home buyer in Sydney are the following:
- Stamp Duty. The tax known as stamp duty is to be paid by a property buyer. It must be paid within three months of the date on which the contracts are signed and exchanged. The greater the cost of the property, the higher your stamp duty will be. You should remember to include the amount of your stamp duty when determining your buyer’s budget.
Across NSW, the stamp duty is about 4.7 percent of the property purchase price. The amount of the stamp duty varies in different Australian states. In NSW, the stamp duty is levied by the Office of State Revenue.
- Land Tax. If your principal residence is valued under $3 million, it is usually exempt from land tax. Yet if the taxable land value is more than $3 million, you must pay premium property duty. If you intend to rent your property, you must pay land tax.
- Building and Pest Inspection. Schedule a Building and Pest Inspection of the property before making an offer. In addition, if you are purchasing an apartment, you should perform a strata search to determine the financial well-being of the apartment complex and body corporate.
- Contract. Be sure to have the property buying contract reviewed by a conveyancer or solicitor before you bid at auction or make an offer on the property. This can enable you to negotiate certain aspects with the vendors, including the deposit amount (for example, 5 percent rather than the standard 10 percent) or the length of settlement.
- Buying Property at Auction. If you are the winning bidder on a property at auction, know that there is no cooling-off period like the one associated with buying a home with a private treaty. You must make the deposit payment (10 percent or perhaps less) with a personal cheque or deposit bond at the end of the auction.
Your solicitor should have reviewed the contract before the auction date. You also should have had a Building and Pest Inspection and ensured that your finances are in order before the property auction.
When you consult our experienced professionals at Olympia Homes located in Alexandria, NSW, you will receive excellent advice concerning building projects in the area. You can also obtain valuable information about homes, condos and apartments that are currently for sale. Our experts will assist you in locating the ideal property for a fashionable and functional new home.
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