FAQ
Why is the vendor selling, and how long has it been on the market?
Locals ask this to figure out their negotiation leverage.
The Answer:
Days on Market (DOM): If a property has been listed for more than 6 to 8 weeks in a steady market, it usually implies it is overpriced, or previous buyers discovered issues during inspection. This gives you room to negotiate a lower offer.
Vendor Motivation: If the vendor has already purchased another home, is downsizing, or moving interstate, they are often on a strict timeline and may accept a lower price in exchange for a quicker settlement or a clean, unconditional contract.
 
What is a Section 32 (or Contract of Sale), and what should I look for?
Before making an offer, locals frequently struggle with reading the thick stack of legal paperwork provided by the selling agent.
The Answer: In states like Victoria, this is called a Section 32 / Vendor’s Statement; in other states, it is simply the Draft Contract of Sale. It is a legal disclosure document where the seller must reveal critical facts about the land.
Red Flags to look for:
Zoning & Overlays: Check if the property is in a high-risk flood or bushfire zone, or has heritage protections restricting renovations.
Easements: Ensure there are no council sewerage lines or pipes running directly under where you plan to build an extension or a pool.
Unapproved Structures: Check if previous decks or renovations received proper council permits. If they didn't, the liability transfers to you upon settlement.
 
How much can I actually borrow, and do I need a 20% deposit?
This is the number one hurdle for local buyers entering a highly priced market.
The Answer: Your Borrowing Capacity is heavily determined by your net income, living expenses, existing debts (including credit card limits), and a "serviceability buffer" (banks test your ability to pay if interest rates rise by an extra 3%).
The 20% Deposit Rule: You do not strictly need a 20% deposit to buy a home. However, if your deposit is less than 20% of the property's value, banks will require you to pay Lenders Mortgage Insurance (LMI) to protect them against default.
The Alternative: Eligible local first-home buyers can bypass LMI with as little as a 5% deposit (or 2% for single parents) via the federal government's Home Guarantee Scheme, where the government acts as the guarantor.
 
What are the hidden upfront and ongoing costs beyond the purchase price?
Many local buyers make the mistake of emptying their entire savings account into the deposit, forgetting that "getting the keys" requires immediate secondary capital.
The Answer: You must budget an additional 3% to 5% of the purchase price for transaction costs.
Upfront Costs:
Stamp Duty: The largest tax. However, local first-home buyers often qualify for full exemptions or substantial concessions depending on the purchase price and state rules (e.g., QLD, NSW, VIC).
Conveyancing/Legal Fees: Usually $1,000 to $2,500 for a solicitor to clear the title and handle settlement.
Building & Pest Inspections: $500 to $800 (essential to uncover structural flaws or termites).
Ongoing Costs: Council rates, water rates, building insurance (mandatory for bank finance), and strata/body corporate levies (if buying an apartment or townhouse).
 
Should I buy at Auction or via Private Treaty, and how do the rules differ?
The buying method changes a buyer's legal rights completely. This is the most legally sensitive question local buyers face.
The Answer:
Private Treaty (For Sale): You make an offer through the agent. If accepted, you typically get a statutory cooling-off period (ranging from 3 to 5 business days depending on the state) to finalize your finance and building inspections. You can also make your offer conditional (e.g., "Subject to Finance").

Auction: Buying at auction means purchasing under unconditional conditions. There is no cooling-off period. If the hammer falls and you are the highest bidder above the reserve price, you sign the contract immediately and must pay a 10% deposit on the spot. Your finance and inspections must be completed before you raise your paddle.