Bought 1st house @ auction, now what?

[sydneyguy]

Hi, guys

Me a long time reader, first time poster! Because I just bought my first house on the weeked at the auction!

Without too much details as I am sure many of you've done this many many times, it was a bit of anti-climax in the end where I shook hands with the vendor and contract exchanged, then agent sholved me out of the door

Anyway, my question here is, what happens now? The signed contract is now finding its way to my solicitor and conveyancing process now began, and told by agent I am entitled to do a final inspection close to the completion in std 42 days.

Anything else I should look out for in dealing with my solicitor, agent, vendors etc etc??

Thanks a lot in advance

 

[MichaelW]

Well done mate!

All you have to do now is make sure your finances are in place. Send a copy of that contract to your lender (probably just the first page), and follow up with them the approval. Your conveyancor will now do the title search stuff and make sure you're getting clean title.

Just sit back, relax and enjoy the process. Check with your team, solicitor and bank, to make sure the process runs smoothly. The only risk now is the bank stuffs something up and you don't have funds available at settlement. They can be clumsy sometimes so its worth riding them to completion.

Cheers mate,
Michael.

 

[lizzie]

Anyway, my question here is, what happens now?

whatever your (hopefully exceptional) conveyancer and broker tell you to do, and do it promptly. other than that - just cruise along.

unless, of course, you have plans for a reno or build or something else - then you'll be busy getting as much organised before settlement as you can.

 

[sydneyguy]

Thanks very much Michael and Liz!
Luckily my finances are very much sorted, so no worries there.

Now, I just thought of some specific questions:

Stamp Duty: From my understanding, stamp duty is payable in 3 months from the exchange date. is this right? Is the OSR going to send me bill to pay or some other way?

Building Insurance: When is a good time to get it arranged? I had a quick look at NRMA, apparently I will need to know the value of the house, how do you derive that? I did their wizard, the value came out to be 1.2 mil!! Hardly accurate at all!!!!!! Any tips on this?

Rubbish Removal: During the final inspection, if I see some rubbish still left around the house (i remember seeing some old timer piled up under the house) can I ask them to clean up further? And someone once said councils can provide a free dump bin for new residents, is that true?

Reno: Yes, this house does need renovation, but I blew all my money in there already, can't afford anything anymore

Thank you people!

 

[steveadl]

Don't forget to take a step back, look at the situation and congratulate yourself - you're now a property investor! Well done SG!

 

[HeXa]

Stamp Duty: From my understanding, stamp duty is payable in 3 months from the exchange date. is this right? Is the OSR going to send me bill to pay or some other way?

yes - my conveyancer normally reminds me... though that is also because I pay the duty before settlement

Building Insurance: When is a good time to get it arranged? I had a quick look at NRMA, apparently I will need to know the value of the house, how do you derive that? I did their wizard, the value came out to be 1.2 mil!! Hardly accurate at all!!!!!! Any tips on this?

often it is suggested to arrange it straight after exchanging... to make sure the vendor's insurance doesn't lapse and bad things happen that screw up settlement. I tend to value the house based on a similar quality brand new house (prices from a decent local builder for a range of plans). You will probably find that the insurer won't pay out more than what they believe the house was worth to rebuild anyways.

Rubbish Removal: During the final inspection, if I see some rubbish still left around the house (i remember seeing some old timer piled up under the house) can I ask them to clean up further? And someone once said councils can provide a free dump bin for new residents, is that true?

em.... vaguely remember something about a responsibility for the seller to clean up the yard before settlement.... might be an ACT thing. I would normally specifically state that in the contract.... so it can't hurt to just ask anyways.

Never know... might find something useful in the pile of crap... ring your council about the skip.

Reno: Yes, this house does need renovation, but I blew all my money in there already, can't afford anything anymore

renos don't have to be expensive... like you have already found, a clean up and some hours here and there can do wonders.

 

[yo yo ma]

Rubbish Removal: During the final inspection, if I see some rubbish still left around the house (i remember seeing some old timer piled up under the house) can I ask them to clean up further? And someone once said councils can provide a free dump bin for new residents, is that true?

I think you will find that the condition you bought it in, will be the condition it settles. In other words, if you bought it with the rubbish there, it will become your problem (unless there is a clause in the contract that says otherwise.) If there is a new pile of rubbish, that is the sellers responsibility. Check with your solicitor... I haven't heard of the free dump bin by councils. Give them a call & check would be the best way to find out.
Congratulations & all the best with it
Steve

 

[Bandita]

Congrats Sydneyguy!!!

Very exciting!!

Everyone has given you great advice - the only thing I can add, is we have always paid stamp duty at settlement - the banks and/or solicitors will tell you how much more you need to settle - which will cover the rest of the deposit, stamp duty, other costs - and settlement is the day - that's in VIC though.

Congrats again!!

Cheers,
Jen

 

[asdf]

Stamp Duty - you need to pay this before settlement, otherwise mortgagee won't advance loan cos they won't be able to register the transfer. 3 months is for delayed settlement so OSR gets their grubby little hands on your money even if you defer the purchase.

Building Insurance - i believe you should take this out now that you have exchanged.

Rubbish - vendors should be leaving the place in an orderly state. You can refuse to settle if its not to your satisfaction. Usually your solicitor will ask you to do a last minute inspection before attending to settlement. Having rubbish lying around is not a valid reason to back out of the purchase, but you can delay it. Now that you bought at auction, you're pretty much done unless your solicitor can find a defect in the title or some misrepresentation in the contract.

May we ask where you bought? in Syd?

 

[sydneyguy]

Thanks everyone for your replies and the congrats

Thanks for all the tips...but I have realised one thing, that is, there's always something unexpected!!

Ok, what happens now, good thing is luckily I do not need a mortgage, but the bad thing is I may not have the money left to pay the stamp duty at settlement!!!!!

As I said, I blew all money in the house and a bit short on the stamp duty, my plan was in 3 months time, through my reasonably good wages I'd have enough money for OSR.

Hmm...I wonder since no loan is involved, if I can wait till end of the 3 month..?

@asdf: Yep, bought in Syd, somewhere on the north shore, crazy market out there!! Now that I have bought, hope this craze will continue!