Moving to Sydney, NSW? How to purchase a property in Sydney

First steps to buy a home in Sydney

Before you buy a home it is extremely important to do your homework. Research the Sydney suburbs and what they offer first, select your preferred suburbs and then make sure you know what other homes in the area are worth and what you may need to buy for something similar. Make a list showing land size, special features, direction of property, school zone, nearness to transport and what the other homes in the street are like. Once you have chosen a property which you think is the sort of home you would like to live in then you might wish to engage a professional valuer who will check for you whether there is anything in planning which decrease the value of your property as well as comparing data which will indicate the worth of the property. You should be able to find a registered valuer on the database of the the Valuers Registration Board or the Australian Property Institute. You may also wish to have a pre-purchase property inspection, pest inspection and if it is an apartment a strata records inspection.
You will need to arrange the necessary finance. You should allow for 10% of the purchase price for the deposit which will be paid immediately after the auction.

Buying in Sydney: treaty vs auction

The two ways of buying a home in Sydney NSW are by private treaty or by auction. The auction process a fair one as everyone can see how the bidding is going but remember there is no cooling off period as there is for a purchase through private treaty. Once you have won the auction you can not then find a reason for not proceeding: you must proceed. Before the auction ask the agent for the contract of sale and ask a solicitor to check this for you .Before the beginning of the auction you must register with the agent and get a bidder’s number. You will need proof of ID to do this. As the auction commences, the auctioneer will read out the terms of the auction. Occasionally the auctioneer will begin with a vendor bid which is usually below the reserve price in order to begin or improve the auction. Should the auction fail to reach the reserve price yet you were the highest bidder you will be able to negotiate with the agent. If you win the auction or negotiate afterwards you will be asked to provide a deposit which can be paid by bank cheque or personal cheque . The deposit will be 10%..

Sold by Private treaty is a different process

If you are choosing a home in Sydney which is to be sold by private treaty then there is a different process. If you make an offer you will be asked to pay a part deposit which is refunded if the vendors do not agree to your offer. The contract of sale becomes a legally binding document when both you and the vendors sign the contract. You must then pay your deposit of 10% and you will then have a five day cooling off period but you if you change your mind about buying the property then you will need to pay the vendor 0.25% of the sale price.
Settlement day is usually six weeks later and this is when you will pay everything in full. You will need to insure your property from this date.

Renting in Sydney

Unfurnished apartments

You would expect unfurnished apartments to have an oven, a cooking range (gas or electric), heating although this may be very basic in the cheaper apartments, bathroom with a shower but not necessarily a bath. Usually the apartments will have carpet or polished boards, curtains or blinds, light fittings, kitchen cupboards and benches and the more expensive apartments may have a dishwasher, car space or a garage. What also can make apartments more expensive is whether the apartment has a balcony, a view, how high up in the building it is, whether there is a gym and how good the location is especially taking into account proximity to transport.
In general there are few good one bedroom unfurnished apartments in Sydney. There are also very few luxury unfurnished apartments available. Good rental accommodation in Sydney is relatively hard to find as there is considerable demand.
Furnished two bedroom apartments are relatively hard to source. Again, rental accommodation is relatively expensive and the rental rates are going up at twice the inflation rate.

Furnished apartments

There is a difference between furnished and Fully Furnished. Furnished properties may have only the bare necessities: oven, cooking range (gas or electric), fridge, washing machine, bed, sofa, table and chairs. A fully furnished property would also have cutlery, cooking utensils, bed linen, towels and all the items that you would expect to find in a serviced apartment. You would not need to buy anything in addition in order to live in the apartment and could come with only your suitcase.

Other rental information in Sydney

Minimum lease term

The minimum time for which a furnished apartment is given for lease in Sydney, is three months but this is relatively rare. More acceptable is a six month lease. The minimum time that an unfurnished property is given on lease is six months but this also is highly unusual and such a lease term on application could severely reduce the chances of that application being accepted. The usual practice is to require you to sign a 12 month lease.

Cost incurred in case of lease breakage
If your lease agreement has not expired and you need to break your lease then you are liable for the rent until a new tenant is found. You may also be liable for a reletting fee which is usually one or two weeks rent as well as advertising costs. you should check how the agent intends advertising the property and what costs will be incurred. It is the responsibility of the landlord to take reasonable action to relet the vacant property.

Brokerage to tenants

Tenants do not pay brokerage in Sydney.

Additional monthly maintenance charges There are no additional monthly maintenance fees to be paid by the tenant. The landlord is responsible for rates and building insurance.

Advance payment for a rental property in Sydney
The standard amount payable to secure a rental property is two weeks rent and a bond which is usually the equivalent of one calendar month’s rent. The bond is a security against damage. It is possible that after the application for the property has been approved that the agent can ask for a one week holding fee which is non refundable if you do not go ahead and sign the lease.

When rent is payable
Rent is payable two weeks in advance.

The lease
You will be given two copies of the lease to sign. This explains the terms by which you are renting the property, the rent you must pay and the period of tenancy. You will also be given the NSW Office of Fair Trading’s New Tenant’s checklist which will assist you to understand what it is that you are signing.

Condition Report
When you move into your property you will be given a condition report in duplicate. Check this carefully and then sign both copies, keeping one for yourself and one should be returned to the agent or landlord within seven days. This will be the comparison which forms the basis for your refund of bond at the end of the tenancy.

Use the map by clicking on the buttons the various Eastern suburbs of Sydney. You will then be given information about the suburb, facilities and transport. This should help you to pinpoint the areas you may want to focus on. If the maps dont work in your browser click here

Use the Sydney map by clicking on the buttons the various Western suburbs of Sydney. You will then be given information about the Sydney's suburbs, facilities and transport. This should help you to pinpoint the Sydney areas you may want to focus on. If the maps dont work in your browser click here

Use the map by clicking on the buttons the various Northern suburbs of Sydney. You will then be given information about the suburb, facilities and transport. This should help you to pinpoint the areas you may want to focus on. If the maps dont work in your browser click here

Use the map by clicking on the buttons the various Southern suburbs of Sydney. You will then be given information about the suburb, facilities and transport. This should help you to pinpoint the areas you may want to focus on. If the maps dont work in your browser click here