You’ve finally found your new home or investment property and settlement is fast approaching. As the nerves begin to set, here are some great tips for a smooth settlement day.
- Understand your settlement
Settlement day is that all-important moment when you finally take full ownership of your new property, marking the official transfer of the title from the seller to you. It also marks the day you have to pay the hefty balance of the agreed price!
Settlement generally occurs between 30 – 90 days after the contract of the sale has been signed, but can be later if both the seller and buyer agree.
When you arrange your finance through a lender or mortgage broker, they ensure the balance of the payment is available to be processed and transferred on this agreed settlement day, thereby making you the legal – and very happy – new owner of the property.
- Understand your costs
From stamp duty to other outgoings, the cost of buying a property is more than just the agreed price. Make sure you understand every cent of associated costs before settlement day. If you fall short and can’t find the missing funds, you could find yourself in a lot of financial difficulty.
- Secure insurance
It’s important to arrange building and contents insurance for your new home as soon as possible. Your lender will usually recommended you do this to protect their interest, but it protects yours as well.
A professional insurance broker can help you find the best possible deal and assist with picking the right insured amount for your property.
- Check the boundaries
If you’ve engaged the services of a good conveyancer, they will double check your property’s boundaries to make sure they match the certificate of title. Depending on the age of your property and records available, they might also recommend title insurance to protect you against unforeseen title claims in the future.
- Do your final inspection
Approximately a week before settlement date, you have the right to arrange a final property inspection. This is all about being sure the vendor hands the property over to you in the same condition as when you bought it. Contact the real estate agent who sold you the property to arrange this final inspection.
Note: if you have a conveyancer, they may do this for you so best to check with them first. They can be a great help to cross-check that all items listed in the contract of sale are in the house and in the right condition.
- Collect the keys!
After you’ve had the call that your property has settled, it’s time to collect the keys. Then you can move in and stamp your style on your new home, or start the rental process and begin your life as a landlord. Either way, we wish you the best of luck!
We hope these six key tips ease any worries you have about your settlement day. Once you’re all settled in, your mind may turn to other ways to build wealth for the future. Investment properties are always a great option, and using the equity in your new home is the perfect way to get your foot even further up the property ladder.
If that’s something that interests you, schedule a free appointment to speak to us. We have plenty of tools at our disposal to help you crunch the numbers and work out if this a viable financial option for you.