How to Buy Land in Western Australia
Are you interested in buying land in Banksia Grove but not sure how to proceed? You've come to the right place.
This guide will walk you through the process of buying land in WA and provide you with all the information you need to make an informed decision.
Whether you're a first-time buyer or a seasoned investor, these simple steps will make the buying process easy and exciting - the way it should be!
1. Do your research
As our Top 5 Things to Consider Before Buying Land article mentioned, doing your research is an important step in the decision-making process. Start researching different areas that might be a good fit for you. It is important to consider things like infrastructure, access to amenities, resale value, and lifestyle factors such as proximity to work and family/friends when making a decision.
To make things easier, the Western Australian Government have developed a property buyers' decision tree that will show you any exemptions, grants or concessions you may qualify for and which taxes you may be liable for.
2. Finance and pre-approval
Before going into any purchasing process, it’s important to know how much you can afford to spend on a block of land or a house and land package. The best way to do this is by working with a broker or your bank to understand exactly how much you will be able to spend on building your new home.
Once you know this, you can start your search for your dream block or work with your builder to create your perfect house and land package.
3. Secure your block
Now that you’ve put together your house and land package and have your finances sorted, it’s time to secure your block! Search land now selling in Banksia Grove to find your perfect block.
4. Contracts of Sale
The document required to make a formal offer, and have it accepted, is called the contract of sale.
In Western Australia, the contract of sale is called an offer and acceptance contract (O&A) and is made up of two documents:
- The O&A contract
- The General Conditions
The O&A includes key information like the offer price, length of settlement and any special conditions of sale. Once the O&A is signed and accepted, it becomes the contract of sale.
The General Conditions document is more property focused and includes where the deposit will be held.
When securing your block of land, the finance conditions are categorised as:
- Unconditional - When you have immediate access to cash
- Conditional - When there are specific conditions on which the sale relies, such as securing finance
After agreeing on a purchase price and conditions, both parties sign the contract of sale document.
TIP: At this point, it’s important to start thinking about appointing a good settlement agent who can handle all your paperwork and ensure everything goes smoothly - especially if there are any special terms or conditions involved in this sale.
5. Put down your deposit
At the time of signing your Offer & Acceptance, you will be required to pay a $1,000 deposit to secure your block of land.
This means that the block you’ve selected will be marked as sold and will not be able to be sold to someone else unless your contract is cancelled.
6. Apply for finance
At this point, your lender or mortgage broker will help you with the final steps of your loan process. As part of this step, you'll need to sign all the relevant documents, and they can walk you through what these mean for both parties involved. The purchase price balance will be transferred to the seller, and your representative will ensure documents are registered, so the title reflects the change of land ownership.
7. Settlement
It’s now time to settle!
The majority of settlements these days happen online, taking a lot of the hassle out of the process. Digital settlements allow you to track the entire process in real-time, receive and sign documents remotely, and share bank details securely.
TIP: If the contract of sale includes any conditions, you should ensure the conditions are met by the due date/s to avoid having to pay any penalty interest.
8. Celebrate
Once you’ve reached settlement for your block of land, pop the champagne because you’re officially a land owner! Now it’s time to take ownership of your property and start the next process: building your dream home.
Once your land is titled, take a photo with your sold sticker on your block to remember your exciting milestone! Share your photo with us and your friendly neighbours by tagging @banksiagrovewa or #banksiagrove.
If you have any questions about purchasing land, get in touch with our friendly Land Sales team, who will be happy to walk you through the entire buying process.