Buzz Words and Phrases
To appear knowledgeable about buying a property in Australia, it helps to familiarise yourself with the common terms used in the process.
Buzzwords and Phrases Connected with Buying a Property in Australia
Residential Real Estate: Australian residential land and housing other than commercial properties such as shops, factories and rural land used for agriculture .
Reserve Bank of Australia (RBA): Central Australian bank that controls the ‘cash rate’ which is a major factor in determining the rate of interest on borrowing set by high street banks and other lenders.
Realtor/Real Estate Agent: Sales professional who will help you find a home and guide you through the negotiations involved in buying or selling a home
Mortgage: Unless you have a large amount of money to buy a house outright, you’ll need to borrow a percentage of the cost. This type of loan is called a mortgage.
Mortgage Broker: Professional who will help you through the process of finding a mortgage to suit you and your needs
Settlement Agent: A professional who will conduct all legal checks and surveys on a property you are interested in buying
Buy-to-Rent: Because there is a shortage of homes in Australia, the rental market is extremely buoyant. This means conditions are attractive for investors who can then rent out their properties.
Rent-to-Buy Schemes: These offer ways for people to purchase a home without the need for a large deposit. They also offer a cheaper, easier way to get onto the property ladder because a percentage of the rental pay each month goes towards the purchase of the property.
House and Land Packages: This is an increasingly popular way to buy a home and it is a cheaper way to build a home than the conventional route of finding land yourself and then getting a builder involved. With a house and land package (or scheme) the whole process is organised through an accredited builder who will offer you a ‘fixed price contract’. This means you will sign legal documents to ensure that the building of the house will not go above an agreed limit or ‘fixed price’. Most lenders insist you have a fixed price contract so that they know the cost is capped. It also gives you peace of mind.
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