Purchasing property in Queensland can be overwhelming and stressful, especially if you are a first home buyer or buying interstate property.

Finding a property to buy, then actually entering into a contract and completing the process through to settlement, can take a lot of time and effort. You need to know and do a lot, and each state has different rules and procedures.

Let’s run through the basic processes for purchasing property in Queensland, so you know how it works before you start.

Determine your budget.

Before starting your property search, you should first calculate how much you can afford to spend and determine how much of a deposit you want to contribute. (generally, 10 to 20 per cent of the property’s purchase price is required) How much you can borrow – not just what the bank will lend you but whether you can comfortably make repayments.

When determining your budget, you’ll need to consider the purchase price of the home and the costs associated with buying.

In Brisbane, the median property price is $722,433, according to the latest figures from CoreLogic. Still, there will be properties priced higher and lower, depending on property type, condition and location.

The most significant cost associated with purchasing in Queensland will be transfer – or stamp duty. You can find out more and estimate how much your transfer duty will be on this Queensland Government website. 

Other costs include government fees, conveyancing fees, loan establishment fees, insurances (including lenders’ mortgage insurance, depending on the deposit amount), building and contents insurance, building and pest inspections and moving costs. You can also consider any concessions and grants you may be eligible for, especially if you are a first home buyer.

Suppose you need help determining how much you can afford and borrow. In that case, it’s a good idea to see a mortgage broker – it won’t cost you anything as the lenders pay them. 

Mortgage brokers do the calculations for you, help you find the best loan product, and organise pre-approval. You can then make offers with a level of comfort that you can borrow the money you are committing to spend.

If you haven’t already got one, this is an excellent time to engage a good lawyer or conveyancer. They will be crucial in reviewing sales contracts, assisting with the settlement process, conducting property searches, correctly dispersing costs, and attending to the final settlement. Don’t just choose one based on price; look for experience and expertise.

Research the market.

In terms of location and dwelling type, careful selection of property is critical. This will help you find a property that suits your requirements, reduce the risk of overpaying, and increase your property’s chances of growing in value. (enabling you to build equity so you can upgrade) 

Start by looking at property listings online, such as realestate.com.au or domain.com.au, to get an idea of what you can buy for your budget. Then, start attending open inspections and talking to agents (TIP: sales agents work for the vendor, not you). Next, do your due diligence and check local council websites for issues affecting the location, e.g. flooding and services.

 Finally, take time to drive through the suburbs you are thinking of purchasing in, and get an idea of where facilities are located, e.g. shops, parks, public transport. If the property is interstate, use Google Maps to search for local facilities and infrastructure.

Some people don’t have the time to look for a property or find it too overwhelming or time-consuming. In that case, you can seek the services of an Exclusive Buyers’ Agent like The Edge Property Buyers. They will do all the hard work for you, conduct due diligence to reduce risk, find great homes to purchase, and negotiate on your behalf.

When you find properties you are interested in buying, make sure you take the time to inspect them properly and thoroughly. Buyers’ Agents can show their value to the property buying equation as they know what to look for as they inspect hundreds of properties a year.

Purchasing via Private Treaty

In Queensland, properties are put up for sale in various ways, with the most common being via private treaty. This is where you make an offer, and if it is not accepted, you can then negotiate until you reach a price and conditions both the seller and buyer agree. 

Conditions can be anything; however are more likely to include making the purchase subject to building and pest inspection, finance clause or the sale of your current property. You should check with your building inspector and mortgage broker before making an offer, so you know the timeframe required for your inspections and finance clauses and can include this with your offer to purchase. (7 to 14 days is pretty standard)

In Queensland, settlement is generally 30 days instead of 42 days in NSW; however, they can be longer if the vendor agrees. (currently, some banks cannot process settlement in 30 days, so 42 days is becoming more common)

The offer is officially accepted when both the buyer and seller sign a contract of sale, and the buyer pays an initial deposit.

The contract of sale will include all the necessary details for the purchase, including the names of the buyer, seller, agents, lawyers and conveyancers, buyers agents, the price, deposits payable, conditions of the sale and the time, contract date and date of settlement.

For a private treaty, there is a five-day cooling-off period. A buyer can pull out of the purchase during this period, and the deposit is refunded within 14 days. If you need to exit the 

agreement after this time, you usually have to pay 0.25% of the purchase price as a penalty in Queensland. 

Purchasing via auction  

If you are buying at auction, there are usually no conditions (unless mutually agreed prior) in the contract and no cooling-off period. There is no cooling-off period, so property inspections, due diligence, and finance should be finalised before auction day. 

Once the auction hammer falls, you sign the contract immediately. If you can’t complete the purchase, you will lose your deposit and be liable for extra costs.

In Queensland, there is also usually no cooling off period for a contract purchased via private treaty within two business days of an auction in which the buyer was a bidder.

It’s also important to note that for an auction in Queensland, buyers cannot get a price guide for an auction property. However, real estate agents will often provide comparable recent sales.

Once signed, the contract should be sent to your lawyer/ conveyancer and mortgage Broker ASAP so they can act on your behalf.

Insurance is critical

In Queensland, the buyer is responsible for the property they have entered into a contract to purchase from 5 pm the next business day after the contract date. (similar to the exchange date for NSW purchasers). Purchasers should immediately arrange building and contents insurance for the property to protect the asset.

Property Inspections

You should also arrange any stipulated building and pest inspections and organise your finance as soon as the contract is signed, so you have plenty of time to review the reports and negotiate rectification works if required.

A few days before the settlement, you should arrange a ‘pre-settlement inspection’ to ensure it’s still in the same condition as when you signed the contract. 

Settlement

On the handover date, the settlement will be effected with the purchase price paid by the buyer and the property transferred into the buyer’s name, and you will own the home. Your lawyer/conveyancer will contact you on settlement day to advise you that the purchase is complete. Then you or your representative can pick up the keys.

For more information on buying processes in Queensland, check out the Queensland Government’s website: https://www.qld.gov.au/law/housing-and-neighbours/buying-and-selling-a-property/buying-a-home.

If you want personalised and independent advice on finding the right property in the right location and help with purchasing, contact us for an obligation-free 30-minute strategy session.