Learning The Language For First Time Buyers
When purchasing property, especially for the first-time buyers, it is easy to be overwhelmed with the chunks of information and jargon you are bombarded with right away. This can be tackled by having a firm understanding of the terminology and acronyms that you will come across by reading...
iBuildNew Editorial TeamJuly 24, 20195 min read
When purchasing property, especially for the first-time buyers, it is easy to be overwhelmed with the chunks of information and jargon you are bombarded with right away. This can be tackled by having a firm understanding of the terminology and acronyms that you will come across by reading contracts, in conversation with a real estate agent or even when discussing loans with the bank. We have provided a few key terms to get you up to speed and ensure a smoother investment process.The PropertyPPOR stands for the principal place of residence where you’ll be staying. This is used to clarify whether a property is going to be utilised as a home to live in or an investment to rent out.Equity is essentially how much of the property you are able to claim ownership of. This can be calculated by deducting the amount left of your home loan from the market value of the property.Body Corporate Levy are the payments you make towards the property costs of the building or apartment complex. This can include maintenance, insurance, security and general upkeep.Stamp Duty is a term you’ll hear a lot of as it is the tax, carried out by the Australian Government, that comes along when purchasing real estate and in addition to the investment price. The tax paid will be based on the cost, location and the reason for buying the property.Site Costs usually apply to items that are not included in the quoted base cost. They cover factors such as earthworks, site preparation and the engineering requirements for the foundation of the house. If you're comparing site costs between builders, make sure you understand exactly what you're being charged for!Building Design Guidelines refers to what is permissible to build in the precinct with detailed guidelines that builders are required to follow through.A Property Covenant can guide or restrain how you build or alter your property. It can be found on the contract of sale, but most commonly within a land's certificate of title.Home Inspection is a highly recommended step that refers to a thorough professional examination that evaluates the structural and mechanical conditions of a property. First home buyers are eligible for a discount on home and building inspections if they are also RACV members.Contract Of Sale is a written agreement that outlines the terms and conditions, the purchase price, length of time until settlement and any other conditions.Conveyancing is the legal process of transferring title/ ownership of a property...which takes us to our next term -A Conveyancer is a licensed and qualified professional who gives you advice on your property, prepares documentation and conducts the settlement process.Cooling-Off-Period generally applies to contracts for the sale of residential properties that were purchased outside of an auction.Certificate Of Title is the official legal document of title, showing who owns the land. It will describe the area and location of the land, list the registered owner as well as any mortgages or interest that are on the land.
iBuildNew Editorial Team
As the specialist voice of Australia’s largest new home building resource, the iBuildNew Editorial Team delivers deep-dive coverage into the house and land sector. From analysing new estate launches to highlighting the country’s leading home designs, we track the building journey to provide clarity for every buyer.
