Buying your first home is one of the most significant financial decisions you’ll ever make. With so many things to consider — location, budget, building condition, legal requirements — it can feel overwhelming. This guide covers the key things to look for before you sign on the dotted line.
1. Get Clear on Your Budget (Including All the Extras)
Most first home buyers focus on the purchase price, but there are additional costs to factor in:
- Stamp duty (or transfer duty) — Victoria offers concessions for first home buyers
- Conveyancing fees
- Building and pest inspection
- Loan establishment fees
- Moving costs and immediate renovations
As a rule of thumb, budget an additional 3–5% on top of the purchase price for transaction costs.
2. Check the Section 32 Vendor’s Statement Carefully
The Section 32 is one of the most important documents in a Victorian property purchase. It contains details about the title, zoning, planning overlays, outgoings, building permits, and any known defects. Never sign a contract before reviewing the Section 32 with your conveyancer.
3. Commission a Building and Pest Inspection
Even if a property looks immaculate, a professional inspection can reveal structural problems, pest infestations, water damage, or unapproved works. The cost of an inspection (typically $400–$600) is a small price compared to the potential cost of undiscovered issues.
4. Research the Neighbourhood
Spend time in the area at different times of day and week. Check proximity to schools, public transport, shopping, and amenities. Look up the council’s planning scheme to understand what may be built nearby in future.
5. Understand Your Finance
Get pre-approval from your lender before you start inspecting properties. Pre-approval confirms your borrowing capacity and strengthens your position when making an offer. Be sure your finance is unconditionally approved before settlement.
6. Review the Contract of Sale
The contract sets out the terms of the sale including price, settlement date, deposit, and any special conditions. Have your conveyancer review the contract before you sign — changes are much easier to negotiate before signing than after.
First Home Owner Grant
Victorian first home buyers purchasing or building a new home may be eligible for the First Home Owner Grant. Your conveyancer can advise whether you qualify and assist with the application process.
Let FC Conveyancing Guide You
Buying your first home doesn’t have to be stressful. Our experienced Melbourne conveyancers will guide you through every step of the process and make sure your interests are protected. Get in touch for a free quote.