A step-by-step guide to home buying

Real Insurance Home Buyers’ Guide

HOME INSURANCE

How to use this guide 3BroughttoyoubyRealInsurance 3

Market outlook 2013 4Isthemarketlookingup? 4

What’s your dream home? 5Decidingwhat’simportanttoyou 5Yournewhomechecklist 5

New or old? 7Decidingwhichtypeofhometobuy 7Theprosandcons 8Buyingofftheplan 8

Your open house checklist 9Whattolookfor 9Propertychecklist 9

Show me the money! 11Understandinghomefinances 11Howmuchshouldyouspend? 11Ahelpinghandfromthegovernment 11Addedextras 13Choosingaloan 14Mortgageinsurance 15Loanpitfalls 16Topthreetipsforpayingoffaloanfaster 16Applyingforaloan 16

Doing your homework 17Tenessentialquestionstoaskbeforeyoubuy 17

Going, going, gone! 18Howtobuyatauction 18Howauctionswork 18Gettingreadytobid 19Fivetipsforsuccessfulauctions 19Negotiatingafteranauction 19Yourauctionchecklist 19

Bring in the lawyers 21Workingwithyourlegalteam 21Whatdoesaconveyancerdo? 21Choosingaconveyancer 21Questionstoaskyourconveyancer 21

Look beneath the surface 22Buildingandpestinspections 22Whatdoesaninspectordo? 22Questionstoaskyourbuildinginspector 22Questionstoaskyourpestinspector 22

Protecting your home 23Gettingtherightinsurance 23Gettingtherightlevelofcover 23Somethingstolookfor 23Protectingtheincomethatpaysyourmortgage 24

Home sweet home! 25Movingwithouthassle 25Yourmovingchecklist 25Fivetipsforchoosingaremovalist 26Fivewaystomakepackingandunpackingeasier 27

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Contents

Buying a home is one of the biggest decisions you’ll ever make, so it’s important to get it right. This guide is packed with practical tips and useful information to help you find, finance and protect your dream home — and potentially save thousands.

Welcometo theReal InsuranceHomeBuyers’Guide.It’s designed to give you practical, independentinformationaboutbuyingahome.Ouraim is tohelptake the stressout of thewholeprocess, so you canmakebetter-informeddecisionsandgetthehomeyoureallywant.

The guide includes step-by-step information and useful tips on:

1. Choosing the perfect location and home for youandyourfamily.

2. Whattolookforatanopenhouseinspection.

3. Understanding home loans and how to apply forfinance.

4. Whattoaskrealestateagents.

5. Howtokeepyourcoolduringanauction.

6. Getting the right legal advice and arranginginspections.

7. Thekindofinsuranceyoumayneed.

8. Hassle-freemoving.

Brought to you by Real InsuranceRealInsuranceispartoftheHollardInsuranceGroup—oneoftheworld’smosttrustedinsurers,withover6.5 million policies worldwide. We’ve been providingaward-winning insurance products to everydayAustralianssince2005.

Wehelpyouprotectwhat’simportanttoyou,includingyourfamily,home,belongings,cars,petsandevenyourbicycles.We’vealsoworkedhardtomakeourproductsas affordable as possible, so everyone can enjoy thepeaceofmindthattopqualityinsurancecoverbrings.

Readitbeforeyoustartlookingforahome,thenkeepitwithyouwhenyou’researchingonlineforahomeloan,outhouse-huntingorbeforeyouheadofftoanauction.Usethehandycheckliststotakenotesandkeeptrackofyourprogress.

Important notices

Of course, this guide provides general informationonly,andisnosubstituteforpersonalisedadvicefromaprofessionallyqualifiedadviser.Itdoesnottakeyourfinancial needs and individual circumstances intoconsideration. If in doubt, we recommend you seekexpert advice and read the relevant documentation(including Product Disclosure Statements) beforemakinganydecisionsaboutbuyingahome,obtainingfinanceortakingoutinsurance.

RealInsuranceisthetradingnameoftheissuerofRealInsurance’sgeneral insuranceTheHollard InsuranceCompany Pty Ltd. You should consider the ProductDisclosureStatementavailableatwww.realinsurance.com.auindecidingifaRealInsuranceproductisrightforyou.

Butyoudon’tjusthavetotakeourwordforit.We’vebeenhonouredwithsomeofthecountry’smostprestigiousinsuranceawards,includingthe2012MoneymagazineAward for Australia’s most affordable Home andContentsinsuranceforourEssentialCover.We’realsorecommendedbynineoutof10ofourcustomers.Visitwww.realinsurance.com.autofindoutmore.

How to use this guide

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Is the market looking up?

AftersixinterestratecutssinceNovember2011,thehousingmarketcouldbelookingup.

InDecember2012,theReserveBankcutitscashrateto3%,alevelnotseensincethedepthsofthefinancialcrisisin2009.AndaccordingtotheAustralianBureauofStatisticscapitalcityhousepriceindex,pricesinanumberofcapitalcitieshavestartedtorespond,bouncingbackfromtwoyearsofflatorfallingprices.

Nonetheless,housinginmanypartsofAustraliamaybemoreaffordablethanit’sbeenforsometime.

TheHousingIndustryAssociation(HIA)HousingAffordabilityIndexclimbed5.3%intheSeptember2012quarter,tobeup15%overtheyear.AccordingtotheHIA,risingincomes,fallinginterestratesandeasingpriceshaveallhelpedtomakehousingmoreaffordablethanithasbeenforsometime.

FiguresfromAustralianPropertyMonitors*showthatAdelaideandHobartremainAustralia’smostaffordablehousingmarkets,withAdelaidehavingthecheapestunitsofallmainlandcapitals.HousepricesinHobart,alreadythecheapestinthenation,fellsharplyintheSeptemberquarter,declining2.0%.

Brisbane isAustralia’ssecondfastestgrowingcity,but itstillhasthe lowesthousepricesofall themainlandcapitals.EveninMelbourne,unitpricesfellforthesixthstraightquarterinSeptember2012,afterfalling0.8%in2011–12financialyear.

Australia’smostexpensivecitiestobuyahomeareSydney,Darwin,CanberraandPerth.WhileDarwinrecordedthebiggesthousepricehikein2012,rising6.7%overtheyeartoSeptember2012,SydneyisstillAustralia’smostexpensivecitytobuyahouse,withamedianpriceofmorethan$640,000.

But the figures also show that there are enormous differences in pricemovements between different states,regionsandsuburbs—makinglocalresearchjustasimportantasever.

Medianhouseprice(September2012)

Medianunitprice(September2012)

12 month priceindex change

(Sep 2011 – Sep 2012)

Houses Units

Adelaide $433,651 $294,989 -0.5% -1.9%Brisbane $430,965 $362,049 -1.2% -0.4%Canberra $556,723 $400,773 -0.1% -1.1%Darwin $610,592 $406,099 3.0% 7.4%Hobart $305,889 $244,633 -4.7% -1.1%Melbourne $523,804 $381,154 -0.8% -6.1%Perth $537,267 $348,293 1.3% 0.1%Sydney $641,890 $458,562 1.0% 0.6%

Market outlook 2013

The state of the market: established house prices across Australia*

*Source:AustralianPropertyMonitorsHousePricingReportSeptember2012

After several years of subdued growth, the Australian housing market is at last showing signs of life — but there may still be plenty of bargains around if you know where to look.

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Deciding what’s important to you

Withsomanyhomestochoosefromandsomuchtothinkabout,huntingforanewhomecanfeeloverwhelming.That’swhyitmakessensetogetorganisedbeforeyoubegin.

Startbymakingachecklistofthefeaturesyou’relookingforinyourpotentialhome.Aswellasnarrowingdownthenumberofplacesyouneedtosee,achecklistcanhelpyoufindahomethatreallysuitsyouandyourfamily’slifestyleandneeds.

Itcanbeusefultodivideyourchecklistinto‘locations’,‘must-haves’(thingsyoucan’tdowithout)and‘nice-to-haves’—thingsyouwouldlikebutcaneitherdowithoutorfixuplateron.

Rememberto thinkabouthowyourneedsmaychange in thefuture.Forexample, ifyouplanonhavingmorechildrenoryoumayneedtofindroomforelderlyparentslateron,thenit’simportanttohaveenoughroomupfront.Inotherwords,thinkaboutyourlargerlifeplan—anddecidewhetheryou’relookingforafive-yearhouseora20-yearhouse.

What’s your dream home?

Some questions to consider Your answers

o Isitinanaffordablearea?

oIsitonethatsuitsyourlifestyle(forexample,closetothebeachifyouspendalotoftimethere)?

oWouldyoubehappierinanewareaoranolder,establishedneighbourhood?

oIsthereadequatepublictransportifyouoryourchildrenuseit?

o

Isitinreasonabledistanceofplacesimportanttoyouandyourfamily,suchasshoppingcentres,schoolorchildcare,park,placesofworshipandsoon?

o Howdotheschoolsinthearearate?

oIsitclosetootherfamilymembersandfriends,ifthat’simportanttoyou?

o Istheareasafe?Whatisthecrimerate?

oIsthehouseinafloodorfirezone?Rememberthathomesclosetothebushorinafloodzonewillattractahigherinsurancepremium.

Your new home checklistLocation, location

Just a little thought and preparation before you start house-hunting can save you weeks of looking and help you find your dream home faster. By knowing exactly what you want, you can also avoid compromising on features that turn out to be an essential part of your family’s lifestyle.

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Some questions to consider Your answers

o Doyouwantahouse,townhouseorapartment?

oAreyoulookingforaneworestablishedhome?See“Neworold?”onpage7

oHowmanybedroomsorbathroomsdoyouneedforyourpresent(orfuture)family?

oIfafamilymemberhasmobilityissues,isthehouseeasyforthemtogetaround?

oIsthereagarageorcarport,oratleastaplaceonthestreettoparkyourcars?

o Areyouwillingtorenovate?

Your new home checklist… continuedMust-haves

Some questions to consider Your answers

o Doyouwantapoolorspa?

o Alandscapedgarden?

o Fireplacesandperiodfeatures?

o Whatcolourschemesappealtoyou?

o Doyouwantcarpetsorfloorboards?

o Whatkindsofcurtainsorblindsdoyouwant?

o Whatareyourdreamkitchenappliances?

o Desiredlightingandbathroomfittings?

o Whatotherfeaturesareyoulookingfor?

Nice to haves

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Deciding which type of home to buy

Bybuyingorbuildingabrandnewhome,youmayhavegreatercontroloverfeaturesandmaterials,allowingyoutopersonaliseitfromthegroundup.Butthatextracontrolcancomeatacost.

Existing homes are not only usually less expensive per squaremetre, they are likely to be located in amoreestablishedarea,nearschools,transportandjobs.

Onesolutioncouldbetobuyanapartmentofftheplaninanestablishedsuburb.Buyingofftheplansimplymeansbuyinganapartment,strataunitorretirementvillagehomethathasbeenplannedanddesignedbutnotyetbuilt.Dependingonwhatstateyoulivein,youcouldbeeligibleforthousandsofdollarsinstategovernmentincentives,suchasstampdutydiscounts.Butit’simportanttodoyourhomeworkbeforeyoubuy.AgoodplacetostartisbycontactingyourlocalOfficeofStateRevenuetofindoutmore.

New or old?

New homes Established homes

Price3 Costsaremorepredictable.

3�Generallycheaperpersquarefootthannewhomes.

3�Moreenergy-efficient,whichcansaveyoumoneyonpowerandwaterbills.

Location

3�Likelytobeinnewneighbourhoodsattractingpeoplewithsimilarlifestyles,soitmaybegoodformakingfriends.

3�Olderstylehomescanhavebeautifuldesignelementsfrompasterasthatareverydifficulttocopy.

7�Mayberemote,withcommutingtakingmoretimeandmoney. 3

�Establishedneighbourhoodsoftenhavegoodtransport.

7�Maylackgoodtransport,shopsandschools.

3�Maybeclosertoservices,transportandshopping.

7�Maybemoreparkingproblems,crowdingandnoisepollutioninolder,moreestablishedareas.

Design 3�Yougettochoosethedesignelements,suchasthecolourschemes,fixtures,fittingsandflooring.

3�Mayhaveappealingdesignfeaturesofaparticularera.

Maintenance

3Newbuildingmaterialsmaybeeasiertomatchorreplacethanoldones. 7

Unlessyourenovate,youhavetoacceptthepreviousowner’staste.

3Newhomesusuallyhaveaone-yearwarranty. 7

Olderplumbing,wiringandfittingsmayneedreplacing.

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Somewarrantiesdon’tcovereverythingthatcouldgowrong—sobesuretocheckyourssotherearenonastysurprises.

7Buildingmaterialsmaybehardertofindandreplace.

New or old? The pros and cons

While an established older home can have charm and a sense of history, buying a new home lets you take advantage of the latest energy efficient, low maintenance building technologies.

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New homes Established homes

Safety

3Buildingguidelinesforsafetyarestricterthaninthepast. 7

Oldermaterials,suchasoldwiringcaneasilybeoverloaded,causingsafetyhazards.

3Newhomesareusuallymorefire-safeandmayhavenewsecurityandgarage-doorsystemsalreadyfitted.

7Woodrotinbalconiesordeckscancauseaccidents.

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Newhomesbuiltnearbushlandcanbemorepronetofloodsandfire,comparedtoestablishedhomesininner-citysuburbs.

New or old? The pros and cons... continued

Pros Cons

Price

3Youcanbuytomorrow’spropertyattoday’sprice,potentiallysavingmoney. 7

Thehousingmarketandinterestratescouldmoveagainstyou,soyourhomecouldlosevaluebeforeyoumovein.

3�Manydeveloperswillacceptadepositbondratherthanacashone,soyoucanbuynowandpaylater.

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Constructiondelayscouldmeanyourpropertymaynotbereadyontime,andrentingelsewherewhileyou’rewaitingcouldbeexpensive.

3

Youmayenjoygovernmentincentives,suchaslowerstampdutyconcessionsorahomebuyer’sgrant,dependingonwhatstateyoulivein.

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Ifyourfinancialcircumstanceschange,youmightn’tbeabletoreselltheproperty,oron-sellitwhileit’sbeingbuilt.

Location 3Bybuyinganewhomebeingbuiltinanestablishedarea,youcanenjoythebestofbothworlds.

7�Ifit’sinanewerlocationitmaynothavegoodfacilitiessuchastransport,schoolsandshoppingcentres.

Design 3

�Youmaybeabletochoosethefinishes,fixturesandotherdesignfeatures,soyou’llsavetimeandmoneyonrenovating.

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�Youdon’tgettowalkthroughyourhouseandcheckitbeforeyoubuyit,soitmaynotlooklikethepicturesormodels.

Maintenance3

Newbuildingmaterialsmaybeeasiertomatchorreplacethanoldones.

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Shoddyworkmanshipcouldleaveyouwiththehassleandexpenseofmaintenance—socheckyourbuilder’sreputation.3

Newhomesusuallyhaveaone-yearwarranty.

Safety

3Buildingguidelinesforsafetyarestricterthaninthepast.

7Again,checkyourbuilder’sreputation,asahastilyconstructedhomecouldhavepotentialsafetyhazards.3

Newhomesareusuallymorefire-safeandmayhavenewsecurityandgarage-doorsystemsalreadyfitted.

Buying off the plan

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What to look for

Beforeyouheadofftoanopeninspection,itpaystodosomegroundwork.First,youmightwanttocheckyour‘must-have’listtomakesurethehomeyou’regoingtoinspecthasthefeaturesyouneed(See“What’sYourDreamHome?”onpage5formore).

Thishandychecklisthelpssimplifyyourhouse-huntingbymakingiteasytocheckthequalityofthehomeyouarelookingtobuy.Useittohelpmakesureeachhouseisvalueformoneyandtotrackthepotentialcostofessentialrepairsandalterationsaheadoftime.

Ifyou’rekeenonahouse,it’sagoodideatovisitinondifferentdaysandtimestoseehowitisindifferentweather,soyou’llknowifit’stoohot,toocoldortoodark,orifthereareanynoiseproblems,suchasbarkingdogs,trafficornoisyneighbours.

Your open house checklist

Some features to consider Your priorities

o Numberandsizeofroomsintheproperty.

o Neighbourhoodsafety(includinglightingatnight).

o Nearestpublictransportisandhowfrequentlyitruns.

oLocationofnearestshoppingcentre,medicalcentreandotherfacilities.

oDrivingdistancefromyourworkplace,children’sschoolorchildcare.

o Proximityofneighbours—anynoise/conflict?

Property checklistThe complete package

Some features to consider Your priorities

o Thelayoutofthebedrooms.

o Anymouldanddampinwallsandceiling.

o Insulationinceilingsorwalls.

o Ceilingfansandbuiltinheatingandcoolingsystems.

oAnycracksinthewalls(thiscanindicatestructuralproblems,socheckifcrackshavebeenfilledandpaintedover).

Inside

Now you know what you’re looking for, it’s time to find a home that fits the bill. But don’t forget to look for telltale signs of underlying problems that could prove expensive in the future.

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Property checklist... continued

Some features to consider Your priorities

o Sizeandshapeofroomswillfityourfurniture.

oStoragespaceincludingcupboards,pantries,built-inwardrobes,anatticorspaceunderthehouse.

oWaterpressureoftapsinkitchen,laundryandbathroom(includingtheshower).

o Lengthoftimeforthehotwatertoheatup.

o Condition,sizeandageofthehotwatersystem.

o Bathroomventilation.

o Windowsopenandclose,withlocksandflyscreens.

o Internetsignalstrength.

o Mobilephonesignalinandoutsidethehouse.

o Conditionofkitchencupboardsanddrawers.

o TVreception(ifthere’saTVinthehouse).

o Locationofpowerpoints,andwhethertheywork.

o Conditionofwindowandfloorcoveringsandtiles.

o Roomsthatneedrepainting.

Some features to consider Your priorities

oDirectionthehousefaces(tomakesureitwon’tbetoohotinsummerortoodarkinwinter).

oConditionoffencesandhowmuchmaintenancetheyardwillneed.

o Parkingspacesinthehouseoroff-streetparking.

oFireratingofhomeandproximitytoruralfireserviceifhomeisclosetobushland.

oConditionofoutdoorfeaturessuchassepticorwatertanks,clotheslines,sheds,letterboxdecksandswimmingpools.

oSlopeofyard(toseeifitwillfloodduringrain)andunderthehousetoseeifit’sverydamporhaspuddles.

o Conditionoftheroofandguttering.

oTermitetracksonanywoodenpartsofthehouse.(See“Lookbeneaththesurface”onpage22formore.)

o Workinggaragedoorsandfuseboxes.

Outside

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Understanding home finances

It’simportanttobehonestwithyourselfaboutwhatyoucancomfortablyaffordtorepay.Justbecauseyoucanborrowacertainamount,itdoesn’tautomaticallymeanyoushould.Borrowingtoomuchcouldcreateunnecessarystressifyourcircumstanceschange—ifyouloseyourjob,oroneofyoustopsworkingtotakecareofthechildren,forexample.That’swhyit’sagoodideatohaveabufferinplace,suchasextrapaymentsyoucanredrawfromyourhomeloanwhentimesaretough.

Remember to factor in theextracostsofbuyingahome—fromstampdutiesandconveyancing tomortgageinsurance(requiredifyourdeposit islessthan20%ofthehouseprice).Remembertoothat interestratescananddorise.So itmakessense tocalculatehowmuchyourrepaymentswouldbeshould interestratesgoupsubstantially.

It can also beworth considering IncomeProtection insurance to helpmake sure you can keep upwith yourmortgagepaymentsifyou’retemporarilyunabletoworkduetoillnessorinjury.Visitwww.realinsurance.com.autofindoutmore.

Show me the money!

House price Deposit (20%) Other upfront costs

Loan amount

Mortgage insurance (if your deposit is less than 20%)

Weekly repayment

$300,000 $60,000 $11,490 $251,490 $1,700 $382

$400,000 $80,000 $15,990 $335,990 $3,000 $511

$500,000 $100,000 $20,490 $420,490 $3,700 $639

$600,000 $120,000 $24,990 $504,990 $4,400 $768

$700,000 $140,000 $29,490 $589,490 $8,200 $896

$800,000 $160,000 $33,990 $673,990 $9,300 $1,025

$900,000 $180,000 $38,490 $758,490 $10,500 $1,153

$1,000,000 $200,000 $43,490 $843,490 $11,746 $1,282

How much will it cost?

How much should you spend?

AssumptionsOther upfront costs include: loan application fee — $500; conveyancing fees and disbursements — $1,500;buildingandpest inspection fees—$500; stampduty calculatedatNSW rates current on1December 2012.Weeklyrepaymentscalculatedfora25yearvariablerateloanwithaninterestrateof6.25%andrepaymentsofbothprincipalandinterest.Allestimatesaregivenasaguideonlyandmayvarysubstantiallydependingonyourlocation,lender,mortgageinsurer,conveyanceandotherfactors.

While home finance doesn’t have to be hard, it is worth taking the time to consider your options. Remember, the right decisions today could end up saving you thousands over the years ahead. If in doubt, seek expert advice.

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Depending on your personal situation and your state, there are awhole range of government grants and taxincentivesyoumayqualifyfor.Buteveryone’ssituationisdifferent,andtheruleschangefrequently,somakesureyoudoyourresearchandgetadviceifyouneedit.

Here’sabriefsummaryofsomeofthemostsignificantgovernmentgrantswhichapplyasatthedateofthisguide.

A helping hand from the government

State Grants and incentives Where to find out more

ACT

First Home Owner Grant$7,000foreligiblefirsthomebuyers

www.revenue.act.gov.au/home_buyer_assistance

Stamp duty concessionsIfyouareafirsthomebuyer,pensionerorlowincomeearner,youmaybeabletodeferstamp

dutyorpayitatalowerrate

NSW

First Home Owner Grant (New Homes)$15,000foreligiblefirsthomeownersbuying

orbuildinganewhome

www.osr.nsw.gov.au/benefits/first_home/

www.osr.nsw.gov.au/benefits/first_home/general/fhogs/

New Home Grant$5,000foreligiblebuyersofnewhomesupto

$650,000orvacantlandupto$450,000

NT

First Home Owner Grant$12,000(urbanareas)or$25,000(otherareas)foreligiblefirsthomebuyersupto$600,000

www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/HomeOwnerIncentives/Pages/default.aspx

Stamp duty concessionsUpto$8,500offstampdutyforeligibleseniors,

pensionersandcarersPrincipal Place of Residence Rebate (PPPR)Upto$7,000offstampdutyforeligiblebuyers

ofnewhomes

QLD

First Home Owner Grant$7,000foreligiblefirsthomebuyers

www.osr.qld.gov.au/first-home-owner-grant/

First Home Owner Construction Grant$15,000foreligiblebuyersorbuildersofnew

homes

SA

First Home Owners GrantUpto$15,000foreligiblefirsthomebuyers

http://revenuesa.sa.gov.au/IamaFHB.html

http://revenuesa.sa.gov.au/IamaPropertyBuyer.htmlHousing Construction Grant

Upto$8,500foreligiblebuyersorbuildersofnewhomes

Off-the-plan Stamp Duty ConcessionUpto$21,330offstampdutyforbuyersofnew

apartmentsinparticulardistricts

TAS

First Home Owner Grant$7,000foreligiblefirsthomebuyers

www.sro.tas.gov.au

First Home Builder Boost (FHBB)Upto$8,000foreligiblefirsthomebuilders(subjecttolegislationpassingparliament)

VIC

First Home Owner Grant$7,000foreligiblefirsthomebuyers

www.sro.vic.gov.au

Stamp duty concessionsConcessionsforeligiblepensioners,farmers,

firsthomebuyersandprincipalplacesofresidence

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A helping hand from the government... continued

State Grants and incentives Where to find out more

WA

First Home Owner Grant$7,000foreligiblefirsthomebuyersupto

$750,000(or$1mforhomesnorthofthe26thparallel)

www.finance.wa.gov.au

First Home Owner ConcessionReducedtransferdutyforeligiblefirsthome

buyers

Added extrasWhenyou’reworkingouthowmuchyoucanspend,it’seasytoforgetaboutalloftheextracostsofbuyinganewhomeandmovingin,sodon’tbecaughtout.Herearesomeofthemostimportantextracoststoconsider.

Legal fees

Beforeyoubuyahome,you’llneedtoarrangeaconveyancerorsolicitortocheckthatthesellerislegallyallowedto sell the property to you, and to arrange to transfer the ownership of the property to you. (Formore aboutconveyancing,see“Bringinthelawyers”onpage21.)

AccordingtotheAustralianInstituteofConveyances,thecostofconveyancingrangesbetween$900and$2,200,dependingonthecostofthehomeandthecomplexityoftheconveyance.

Stamp duty

Dependingonyourstateorterritory,youmayneedtopaystampdutyonthepropertytransferandthemortgage.Theamountyou’llneedtopaydependsonyourlocationandthepriceoftheproperty.Youcanfindoutmoreusingtheonlinecalculatorslistedbelow.

Ifyou’reafirsthomebuyer,youcanoftengetagoodconcessiononstampdutycosts.Again,thewebsiteofyourstaterevenueofficeisagoodplacetostart.

Yourhomelenderwillcollectyourmortgagestampduty,ifyouneedtopayit,onbehalfofthegovernment.Thesefeesareusuallyeitherincludedinthehomeloanorchargedtoabankaccountofyourchoice.

Stamp duty calculators

• ACT:www.revenue.act.gov.au/calculators

• NSW:www.osr.nsw.gov.au/taxes/transfer_land/calculator/

• NorthernTerritory:www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/StampDuty/StampDutyCalculators/Pages/default.aspx

• Queensland:www.osr.qld.gov.au/calculators/index.shtml

• SouthAustralia:www.revenuesa.sa.gov.au/stamps/SDcalcs/conveycalc.html

• Tasmania:http://www.sro.tas.gov.au/domino/dtf/SROWebsite.nsf/v-all/4829E8B44ABC1076CA25793300034073?OpenDocument&menuitem=Property%20Transfer%20Duties

• Victoria:www.sro.vic.gov.au/SRO/sronav.nsf/alltitle/Calculators?open

• WesternAustralia:http://rol.osr.wa.gov.au/taxcal/

AustralianInstituteofConveyancesNSWDivision,“Thecostofbuyingahome”,www.aicnsw.com.au/for-consumers/cost-of-buying-a-homeretrieved4December2012.

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Other charges and costs

Herearesomeothercostsyoumightneedtobudgetfor:

• Buildingandpestinspections(see“Lookbeneaththesurface”,onpage22formore).

• Councilrates.

• Stratafees,ifyou’removingintoanapartmentblock.

• Removalists.

• Pestcontrol.

• Installinganewphoneline,wirelessinternetandcableTV.

• Depositforutilities.

• Cleaningforbotholdandnewhome(ifyoudon’tdoityourself).

• Redirectingmail.

• Renovatingandrepairs.

• Removinganyhardrubbishandtransportingtherubbishtothedump.

• Gardeningandlandscapingcosts.

Added extras... continued

Withsomanylendersandloansonthemarket,it’seasytogetconfusedaboutwhat’sbestforyou.Sohere’saquickbreakdownofthedifferenttypesoffinancialinstitutionsthatofferloans,aswellasasimpleexplanationofthekindsofhomeloansavailableandtheirfeatures.

Don’tbeafraidtoshoparoundandspeaktodifferentlenders.Askthemquestionsandbepreparedtonegotiatetogetthebestratepossible.YoushouldalsoaskthelendertoprovideyouwithaKeyFactsSheet,whichsetsoutinformationabouttheirhomeloanstohelpyoucomparethemwiththecompetition.Bylaw,afinancialinstitutionmustgiveyouahomeloanKeyFactsSheetifyouaskforone.

Choosing a loan

Banks and non-bank lendersTherearesomedifferencesbetweenbanksandbuildingsocietiesandcreditunions,whichmeantheirhomeloansaredifferenttoo.

Becausebanksareownedbyshareholders,theyneedtobeabletomakeaprofit.Thatcanaffectthefeesandinteresttheycharge,althoughtheymaybewillingtonegotiateadiscountontheirheadlinerate.Becausetheyarelargerthancreditunions,thebigbanksmayalsohavemoreproductstochoosefrom,withawiderrangeoffeatures.

Acreditunionisanot-for-profitorganisationthatisownedbyitsmembers,soitmaybeabletochargealowerrate.ButacreditunionmayalsoofferfewerATMsandbranches,aswellaslessaccesstoonlineandtelephonebanking.

Mortgage brokersAmortgagebrokercanhelpyoufindaloanthatsuitsyourneeds,choosingfromawiderangeofloansofferedbybanksandotherfinancialinstitutions.Dependingonyoursituation,theymayalsobeabletoarrangeaspecialdeal.Butwhileabrokercansaveyoutimeandmoney,theiradvicecomesatacost.Soit’simportanttounderstandthesizeoftheirfeesandhowthey’rechargedbeforecommitting.

Interest ratesHomeloaninterestrateshavehistoricallybeenlinkedtoAustralia’sofficialcashrate,setbytheReserveBankofAustralia(RBA).Asaresult,theytypicallyriseorfallwhenthecashratechanges,althoughnotnecessarilybythesameamount.

That’sbecausefinancialinstitutionsareincreasinglysourcingfundsfromwholesalemarkets,oftenoverseas.SotheamounttheypayforthosefundsmaybecompletelyunrelatedtotheratesetbytheRBA.

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InDecember2011,ANZmadeheadlinesbyannouncingthat thebankwouldnowfollowacompletelydifferenttimetabletotheRBAforitsinterestratedecisions,underliningthegrowingimportanceofotherinfluences.Sofar,nootherbankshavefolloweditslead,butthere’snodoubtthatthecashratearelesslikelytoautomaticallyfollowmovementsinthecashratethanatanytimeintherecentpast.Fortunately,fiercecompetitioninthehomeloanmarkethelpstokeepratescompetitive.

Meanwhile,theRBAcontinuestoreviewthecashrateeverymonth.Dependingontheeconomicsituation,itcanmovealongwayinashorttime,soit’simportanttobeprepared.InDecember2012,theofficialcashratewascutto3%.Comparethisto1990,whenitpeakedat17.5%,andyou’llseemuchitcanchange.

Fixed interest rate

Onewayaborrowercanprotectthemselvesagainstchanginginterestratesistotakeoutallorpartoftheirhomeloanasafixedrateloan.Thatmeanstheinterestratewillremainthesamefortheperiodselected—usuallyonetofiveyears.Soariseintheinterestratewon’taffecttheborrowerduringthatperiod.Afixedratecanbegreatforbudgeting,sinceitallowstheborrowertoworkouttheexactamounttheyneedtopaybeforehand.

Buttherecanbeadownside.Withafixedrateloan,thereisnobenefitifinterestratesfall.Andsomefixedrateloansdon’tallowextrarepaymentsontheloan.Penaltiesmayapplyiftheloanispaidoffearly.

Variable interest rate

A variable interest rate goesup anddownwith the cash rate, alongwith other changes thatmay affect yourfinancialinstitution.

Thegreatthingaboutavariableinterestrateisthatitusuallydropswhenthecashratefalls,reducingtheinterestpayable.Variablerate loansalsogenerallyallowtheborrower topaybackasmuchas theywant,so theycangetaheadof their loanandsaveon interest. If the loanalsohasaredrawfacility, theborrowercanuseextrarepaymentstobuildupabufferandkeepacashreserveontap.

Ofcourse,ifthecashrategoesup,thevariablehomeloaninterestrateislikelytoincreasetoo.Thatcanmakeabigdifferencetomonthlyrepayments.Itmayevenbepossibleforthebankorbuildingsocietytoincreasetheirrateswithoutanyincreaseinthecashrate,althoughthatwouldputthematalargecompetitivedisadvantage.

Comparison rate

Withhoneymoonrates, feesandothercharges, itcanbehard todecidewhich loan isbest. That’swhere thecomparisonratecomesin.Thecomparisonratetakesthestandardinterestrate,feesandchargesforaloanandwrapsthemupintoasinglepercentagefigureusingastandardisedcalculationsetbythegovernment.Lendersarerequiredbylawtoshowthecomparisonratewhentheyadvertiseloans,makingthemmucheasiertocompare.

Choosing a loan... continued

Other features

• Redraw facility:Somehomeloansincludearedrawfacilityatnoextracost,whichmeansaborrowercanpayoffmorewhentheyhavecashavailablethenredrawitlateroniftheyneedit.

• Online access:Manyfinancialinstitutionsnowgiveyou24houraccesstoyourhomeloanthroughyouronlinebank,soyoucancheckyourbalance,makeextrarepaymentsorevenredrawmoney(ifavailableonyourloan),allfromyourhomecomputerormobilephone.

• Early repayment fee:Ifafixedrateloanispaidoffearly,theborrowermaybechargedanearlyrepaymentfee,tocoverwhatthefinancialinstitutionhaslostoninterestpayments.

• Offset accounts:Somehomeloanscomewithanoffset facilitywhichhelpspayoff the loanmorequickly.Itworksbyoffsetting thebalance in thesavingsaccountagainst themortgage.Thatmeans theborrowereffectivelyearnsinterestontheirsavingsatthesamerateastheypayontheirhomeloan.

Mortgageinsurancehelpstoprotectthelenderiftheborrowerisunabletomaketheirpaymentsandendsupdefaultingontheir loan.Not tobeconfusedwithmortgageprotection insurance,which is theretoprotect theborrower,mortgageinsuranceisdesignedtocoverthelender’srisk.

Mortgage insurance

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Mortgageinsuranceiscompulsoryifyouborrowmorethan80%ofthevalueofyourhome—anothergoodreasontomakesureyouhaveahealthydepositbeforeyoubuy.Youmayalsoneedtotakeoutmortgageinsuranceifyouareself-employedorchoosea“lowdoc”loanwithlessneedtoproveyourincome.

Mortgageinsuranceispaidasaonce-offinsurancepremiumorfeeatthebeginningofyourloanandisarrangedbyyourlenderduringtheborrowingprocess.

Mortgage insurance... continued

Whenitcomestohomeloans,itcanpaytobecurious.Ask plenty of questions before signing, and take thetimetoreadthefineprint,inordertoavoidanynastysurprises later on. Here are two common pitfalls tolookoutfor:

• Breakfees.Sometimeschargedifthehomeloanispaidoffearly,breakfeescanbeasignificantextracost,especiallyonafixedrateloan.

• Honeymoonrates.Ahoneymoonrate isaspeciallowinterestratethatlastsforafixedperiodbeforechanging back to a higher, standard rate. Whilehoneymoonratescanbegreatwhendealingwithalltheotherexpensesofsettingupanewhouse,theycancatch yououtwhen theyswitchback tothe higher rate unless you’re prepared. So it isimportant to check the rate payable once thehoneymoon’soverandfactoritintothebudget.

1. Increase your payments.Evenasmallextrarepaymentof$20or$50aweekcanmakea big differenceover time.But remember,penalties may be payable for some fixedrateloansiftheloanispaidoffearly.

2. Pay weekly or every fortnight.Payingmoreoftenallowsaborrowertoeffectivelymakean extramonth’s worth of payments eachyear, without a noticeable impact on theirbudget.

3. Make a one-off payment.Puttingabonus,taxreturnor inheritance,on themortgagecanspeeduptherepaymenttimeandsavemoneyoninterest.

Nowyou’vecheckedoutavarietyofhomeloansandlenders,andfoundonethatbestsuitsyourneeds,youcanbegintheapplicationprocess.

Loan pitfallsTop 3 tips for paying off a loan faster

Applying for a loan

Preparation

Beforeyouapply,havethefollowingdocumentshandy:

• Proofofidentity(suchasabirthcertificate)andphotoIDsuchasyourdriver’slicenceorpassport.

• Proofofyourincome.Thatcouldbepayslipsifyouhaveanemployer,ortwoyearsofbusinessfinancialsandtaxreturnsifyou’reself-employed.

• AletterfromCentrelinkifyouarereceivingapensionorfamilyallowance,oraletterfromyourrealestateagentifyouarereceivingrentalincome.

• Arecordofwhatyouowe,suchasrecentcreditcardsorpersonalloanstatements.

Youdon’tneedtohavefoundaplacetobuybeforeapplyingforaloan.Instead,youcanhaveyourloanpre-approved.Bydoingthis,you’llhaveabetterideaofwhatyourbudgetiswhichwillhelpyouwhileyou’rehouse-hunting,asyouwon’twastetimelookingatthingsoutsideofyourpricerange.Then,onceyoufindtheplaceyouwant,youcanmovequicklybeforesomeoneelsesnapsupthepropertyyou’vehadyoureyeon.

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Ten essential questions to ask before you buy

1. Whyisthehomeownerselling?(Iftheagentisvagueaboutit,seeifyoucanfindoutfromaneighbour).

2. Whosettheprice?Sometimes,theownermaynotbereallyintouchwiththetruemarketvalueofthehomewhichmeansyoumightbeabletonegotiateamorerealisticprice.

3. Istheownerwillingtonegotiate?It’sworthasking,especiallyifyou’rereallykeenonthehouse.

4. Howlonghasthehousebeenonthemarket?Ifit’salongtime,theremaybeproblemswiththehouse,somakesureyouinspectitcarefully(see“Lookbeneaththesurface”onpage22formore).

5. Arethereanyproblemswiththishouse?Askstraightout,andlettheagentknowthatifyoudiscoverlaterintheprocessthereareproblemsthattheydidn’ttellyouabout,youwilllookforanotheragent.

6. Whendoestheownerneedtomoveout?Ifthey’reinahurry,youmaybeabletobargainforabetterprice.

7. Whatdoyouthinkthepropertywillsellfor?Seeifthere’sagapbetweenwhatthesellerwantsandwhattheyarelikelytoget.

8. Whatotherhomesdo youhavearound thisprice?Thiswillhelp theagent realise that youarenotoverlyattachedtothisproperty.

9. Whatisincludedwiththeproperty?Seeifyoucannegotiatetohavefeaturesyoulikeaboutthehouse,suchascurtains,appliances,whitegoodsandsoon,aspartofthedeal.

10. IfIbuythehome,willitbeinthesameconditionwhenIgetthekeys?Makesureyouvisitthehomeagainandcheckitonemoretimebeforeyousignonthedottedline.

Doing your homework

By asking these simple questions, you can avoid some of the most common pitfalls affecting home-buyers and make sure you’re getting value for money.

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How to buy at auction

Buyingahouseatauctionisanexperienceunlikeanyother.Itcanbeanopportunitytosnapupabargain,butitcanalsobeoverwhelming,especiallyifyou’reunprepared.

Themoreyouknowabouttheprocess,thebetter.Soherearesomeauctionessentials,plussomehandytipstohelpyouputyourbestfootforwardonthebigday.

Mostimportantly,trygoingalongtoafewauctionstounderstandhowtheywork.Andifyoufindtheideaofbiddingyourselftoodaunting,rememberthattherearealternatives.Youcanhireaprofessionaltobidforyou,orsimplymakeanofferbeforetheauctiondate.Includeaseven-daycoolingoffperiodtomakesureyouhavetimetogetfinalbankapprovalbeforethecontractisfinalised.

Going, going, gone!

How auctions workAuctionsarecarefullyregulated,withstrictrulesaboutwhocanbidandhow.Checkyourstate’sconsumeraffairsorfairtradingdepartmentwebsitetofindouttherulesforyourstate.They’redesignedtoprotectyouandotherbidders,soit’sagoodideatobecomefamiliarwiththem.

Here’sanoverviewoftheauctionprocessin10steps:

1. Get ready. Thehousewillbeopenforinspectionabouthalfanhourbeforetheauctionstarts,soeveryonecanhaveafinallook.

2. Get set.Theauctioneerwillgothroughtherulesoftheauctionbeforeitstarts.

3. Go!Thebiddingstarts,withhopefulbuyersbiddinginamounts(knownas“rises”or“biddingadvances”)setbytherealestateagentduringtheauction.Whilebiddingoftenbeginsinincrementsof$10,000or$20,000youcanslowbyofferinganincreaseof$5,000orless.Occasionally,ifthebiddingstalls,theagentmayaccept$1,000andeven$500increments.

4. Vendor bids.Duringtheauction,theagentmightcheckwiththesellertofindoutifthepriceishighenoughtosell.Ifthesellerisn’tsatisfiedwiththelastbid,theauctioneercanactontheirbehalfandplaceabid,knownasa“vendorbid”.Therulesforvendorbidsvaryfromstatetostate,socheckthembeforetheauction.

5. On market. If the bidding reaches the seller’s reserve price, the auctioneerwill declare the property “onmarket”.Thatmeansitwillbesoldtothehighestbidder.

6. Passing in.Ifthepropertydoesn’treachthereserveandtherearenomorebids,thentheproperty“passesin”unsold.Atthatpoint,thehighestbiddergetsthefirstchancetonegotiatewiththeseller.Onlyiftheycannotreachanagreementcantheselleropennegotiationstootherpossiblebuyers.

7. Sealing the deal.Oncethepropertyhasbeensold,thebuyerandthesellersignthecontractofsale,makingitlegallybinding.Thesellerthenpaysadeposit,whichwillbeheldintrustuntilsettlement.

Auctions can be exciting, daunting and overwhelming, all at the same time. By understanding the ins and outs, you can take advantage of the opportunities while avoiding the pitfalls.

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Getting ready to bidYoucanonlybidinanauctionifyouareinapositiontomakeadepositontheday.Thesizeofthedepositissetbeforetheauction,usuallyat5%–10%ofthepurchaseprice.Onewayofmakingsureyoudon’tgooveryourlimitistomakeoutachequefor5%or10%(whateverthedepositamountis)ofyourmaximumprice.Thiswayyoucan’tbidoveryourlimit.

Ifyouthinkyou’llfindtheauctiontoodaunting,thereistheoptionofusingaprofessionalpurchasingagent.Youcouldalsoaskafriendorfamilymembertobidforyou.Butyouneedtocheckwiththeagentorauctioneertounderstandtheirrequirements.It’simportanttorememberthatifyouappointabiddertorepresentyou,andtheirbidissuccessful,thenit’sasbindingasabidyoumadeyourself.

Five tips for successful auctions1. Make an offer.Whenyoufindahouseyouwanttobuy,considergettinginearlybymakinganofferbeforethe

auctiondate.

2. Read the fine print. Getyoursolicitor tocheck thecontract thoroughly (togetherwith thestrata report, ifyou’rebuyinganapartment)andexplainanythingyoudon’tunderstand.Ifyou’renotcomfortableaboutthetermsandconditionsofthesalecontract,talktothevendorbeforetheauctiontoseeiftheycanchangethem.Remember,onceyoumakethatwinningbid,you’relockedin,soyouneedtotakecareofanyconcernsbeforebiddingstarts.

3. Set a limit. Beforeyougototheauction,putafirmlimitonhowmuchyouarepreparedtobid.Auctionscanbeveryemotionalandcompetitive,soit’seasytooverbidintheheatofthemoment.Ifyou’rebuyingthepropertywithotherpeople,decidetogetherwhatyourlimitisandholdeachothertoit.Keepinmindthatthewinningbidisunlikelytobearoundfigure(like$500,000),soleavesomewiggleroomforthosesmaller,lastminutebids($510,000,forexample).

4. Be assertive.Don’tbeafraid toaskquestionsof theauctioneer, andbe ready tooffer figuressmallerorbigger,thanthepricebeingcalledforifitsuitsyourstrategy.

5. Be ready to negotiate.Ifthepropertypassesin,thehighestbidderwinsthefirstchancetonegotiateapricewiththeseller,soitmaymakesensetoendonahighnoteevenifthepropertyisn’tyetonthemarket.

Negotiating after an auctionSometimes,thepropertydoesn’treachthereserveprice—thatis,theminimumamountthatthesellerasksfor.Inthiscase,youmightbeabletonegotiateasaleoncetheauctionisover.Iftheownerreallywantstosellthehometheymaybemorelikelytoacceptalowerprice,soyoucouldendupgettingagooddeal.However,don’tbepushedintomakinganofferyou’renotcomfortablewith,andmakesurethereisaseven-daycoolingoffperiod.

Your auction checklistTo do list Your notes

o Checktheauctionrulesinyourstate.

o Gotootherauctions.

o Arrangeabuildinginspection.

o Arrangeapestinspection.

o Askyoursolicitortocheckthecontract.

o Bereadytopaythedeposit.

o Registerasabidder(ifrequiredinyourState).

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Your auction checklist... continuedTo do list Your notes

o Doafinalinspection.

o Setyourlimit.

oBereadytopaythedepositandsignthecontract.Havethechequeandidentificationwithyou.

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Working with your legal team

Bring in the lawyers

What does a conveyancer do?A conveyancer or conveyancing solicitormakes sure your property purchase is legal and that your rights arelookedafterduringthesale.Theirjobistopreparethelegaldocumentstotransferthepropertytoyournameandlookthroughthepropertycontractandexplainittoyou.

Aconveyancermayalso:

• Searchforstratareports(ifyou’rebuyinganapartment).

• Organisetheexchangeofcontractsforsale.

• Negotiatewiththeseller’slawyerforyou.

• Orderbuildingorpestinspections.

• Giveyouadviceaboutthecontract.

• Helpyouthroughthesettlementprocess.

Your conveyancer or solicitor is there to support you and make the process of buying a new home easy and stress free. You can help, by understanding their role and asking the key questions they’re there to answer.

Choosing a conveyancerAs foranyprofessionalservice, it’salwaysgood toshoparound, rather thangoingwith the firstoneyou find.Alwaysaskquestions,evenifsomeoneyoutrusthasrecommendedtheirservicestoyou.LookforaconveyancerwhospeakstoyouinplainEnglish,takesthetimetoexplaintheprocesstoyou—andclearlyoutlinestheirfeestructureandhowmuchyou’llneedtopay.

Some questions to ask your conveyancer1. AreyouamemberoftheAustralianInstituteofConveyancers?

2. Doyouchargeafixedfeeoranhourlyrate?

3. What’sthemaximumpriceI’llhavetopay?

4. WhatgovernmentfeesandchargeswillIneedtopay?

5. Howlongdoyouthinksettlement(theprocessofexchangingfundsandtheproperty)willtake?

6. Hasthecouncilapprovedallthealterationstothishouse?

7. Howwillyoukeepincontactwithmethroughtheprocess(byemailortelephone)?

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Building and pest inspections

Look beneath the surface

It’sunlikelyyou’llbeabletoconfirmthequalityofahomejustbylookingatitinanopeninspection.Forexample,youcan’tcheckwhethertheroofhasbeenproperlyweathersealed,andcracksthatindicatestructuralproblemsmayhavebeencleverlycoveredup.

That’swhyyoushouldalwaysgetabuildinginspectionandapestinspectionbeforeyoubuy.Ifyoudon’tfindanyfaultsorpests,that’sgreat—butevenifyoudo,youmaybeabletousethisinformationtonegotiateabetterprice.You’llalsoknowhowmuchyouneedtospendtofixanyproblems.

Even new houses and apartments can have hidden flaws that could end up costing you thousands down the track. So it’s worth investing in an inspection before you buy.

What does an inspector do?Thebuildinginspectorshouldchecktheinsideandoutsideofthehouse,aswellascheckingtheroof,underthefloorsandthroughouttheyard,includingdrivewaysandsheds.Theinspectionalsocoverswiringandplumbing.

Apestinspectorlooksforevidenceofpeststhatcandestroytimber,suchastermitesorwhiteants,borersandfungaldecay.

AccordingtotheAustralian InstituteofConveyancespestandbuilding inspectionstypicallycostbetween$400and$800—agoodinvestmentwhenyouconsiderthatrepairingtermitedamagealonecanrunintothousandsofdollars.*

Some questions to ask your building inspector1. Whatareyourqualifications?

2. Isyourbusinessamemberofanindustryassociation?

3. Areyourinspectionsguaranteed,andifso,howlongfor?

4. Whatwillthisinspectioncover,andisitcarriedoutaccordingtotheAustralianstandard(AS4349.1)?

5. CanIseeasampleofoneofyourreports?

Some questions to ask your pest inspector1. Howlonghasthebusinessbeenoperating?

2. Areyouamemberofanindustryassociation?

3. CanIseeproofofyourprofessionalindemnityandpublicliabilityinsurance?

*AustralianInstituteofConveyancesNSWDivision,“Thecostofbuyingahome”,www.aicnsw.com.au/for-consumers/cost-of-buying-a-homeretrieved4December2012.

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Getting the right insurance

Protecting your home

Afterspendingsomuchtime,effortandmoneybuyingahome,youwanttokeepitsafe.Mostlendersrequireyoutotakeouthomeinsurancetosafeguardthepropertythatsecuresyourloan.Butwhetheryourlenderrequiresitornot,homeandcontentsinsuranceisvaluableprotectionforthethingsyouvaluemost.

Homeandcontentsinsurancehelpstoprotectyournewhomeagainstfires,floods,stormsandotherdisasters.Italsocoversthebelongingsinsideyourhomeagainstburglaryanddamageinanaccidentornaturaldisaster.

Withoutinsurance,somethingassimpleasafallentreeorafloodedlaundrycouldendupcostingyouthousands.That’swhygoodqualityhomeandcontentscoveriswellworthconsidering.

After your family and your health, your home and belongings are some of the most important assets you have. So it’s important to protect them against unpleasant surprises.

Getting the right level of coverTogettherightlevelofcover,ahomeownerneedstostartbyworkingoutwhatitwouldcosttorebuildtheirhomeifitwastotallydestroyed.It’simportanttoincludethecostsofclearingthesite,theaveragepriceofbuildinganew,similarhomeandextracosts,suchasaccommodationwhilethehouseisbeingrebuilt.

Homeownerstakingoutcontents insurancealsoneedtocalculatethereplacementvalueoftheirbelongings.Oneapproachistogothroughthehouseroombyroom,recordingthepriceofeverythingthatwouldneedtobereplacedifthehousewasdestroyed—fromcrockerytocutlery,linen,mirrors,children’stoys,furnishings,evenclothes.Itmaybeworthrememberingthatitcouldcostmoretoreplacebelongingsattoday’spricesthantheyoriginallycosttobuy.

Considertakingphotosofpreciousitemslikejewelleryandkeepingthedetailsinasafeplaceoutsideyourhome.

Some things to look forNotallhomeandcontentscoveristhesame,soit’simportanttocheckthepolicytomakesureitmeetsyourneedsandthatyou’regettingvalueformoney.

Herearesomefeaturestolookoutfor:

• Newforoldreplacementformostcontents.

• Achoiceofexcess,soyoucanadjustyourexcessandyourpremiums.

• Oneexcessforhomeandanotherforcontents.

• Theoptionofmakingmonthlypaymentsatnoorlittleextracharge.

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Protecting the income that pays your mortgageThiscouldalsobeagoodtimetothinkaboutprotectingtheincomethatpaysforthemortgage.IncomeProtectioninsurancehelpstogivehomeownersaregularmonthlyincomeiftheyaretemporarilyunabletoworkbecauseofillnessorinjury.Thatmakesitpossibleforthemtotakecareofbillsandmortgagepaymentswhiletheyrecover,withoutthestressofworryingaboutmoney.

Tofindoutmore,gotowww.realinsurance.com.au

Real Insurance isthetradingnameofTheHollardInsuranceCompanyPtyLtd, the issuerofReal Insurance’sgeneralinsurance.YoushouldconsidertheProductDisclosureStatementavailableatwww.realinsurance.com.auwhendecidingifaproductisrightforyou.

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Moving without hassle

Home sweet home!

Movingdoesn’thavetobestressful.Herearesomeideastohelpmakeyourmovingdayworry-free:

• Beforeyoumove,makesureyoupre-bookyourremovalistandgetaformalquote.

• Checktheweatherintheleaduptomovingday,andifit’sgoingtorainconsiderchangingtheday,oratleastwrapitemsinplasticthatcouldbedamagedbygettingwet.

• Manypeoplemoveonaweekend,soit’softenthebusiesttimeforremovalists,whichmeanstheymaychargeyoumore.Andwithtrafficoftenanissueonweekends,movingonaweekdaymightbeyourbestbet.

• Whynotorganiseagaragesaleforallyourunwanteditems,ordonatethemtocharitybeforeyoumove?Ifyoudecideonagaragesale,holditafewweeksbeforeyoustartpacking.

• Petscangetinthewayofremovalistsandcanalsogetdistressedandunsettledduringamove,soconsiderputtingtheminboardingortakingthemaroundtofamilyorfriendsontheday.

Congratulations on your new home! Here are some tips to help move in without the hassle.

Your moving checklist

To do list Your notes

oUtilities,phoneandinternetcancelledatoldhome.

o Internetconnected.

o Telephonelineconnected.

o CableTVconnected

o Gas/electricityconnected.

o Contentsinsurancearranged.

o Removalistbooked.

o Cleanerbooked.

oNon-essentialitemspackedaheadofmovingday.

o Garagesaleorganisedandadvertised.

o Finalcheckoftheoldhouse.

o Washingmachinedrained.

o Fridgeemptied.

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Your moving checklist... continued

To do list Your notes

Change of address for:

o RTA.

o Insurance.

o Healthfund.

o Medicare.

o Schools

o Mobilephoneprovider.

o Internetprovider.

o Doctor.

o Dentist.

o Employer.

o Roadsideassistance.

o Othertasks

Five tips for choosing a removalist1. Don’trelyjustonthecompany’sadvertising—askfriends,colleaguesandfamilyforrecommendationsand

warnings!ChecktheAustralianFurnitureRemoversAssociationforalistofqualifiedcompanies.Getanumberofquotesandcomparethem.

2. Asmallremovalistmayovercommittoanumberofjobsandcancelonyouatthelastminute,sooftenabiggerremovalistcompanywithlotsoftrucksmaybeyourbestbet.

3. Bookwellaheadtomakesurethecompanyyouchooseisavailableonthedayyouwanttomove.

4. Don’teverchooseonpricealone.Acheapbutinexperiencedremovalistmaydamageyourproperty,ortakealongtimetomoveyourpropertyandendupcostingyourmore.Manyremovalistswillvisityoutogiveyouaquote,basedonhowmuchyouhavetomove.Getawrittencontractsoallthecostsareincludedinthequote.

5. There’snolawrequiringremovaliststohaveinsurance,andgenerally,becauseyoudothepacking,removalistswon’t take responsibility for yourpossessions if theygetdamaged in transit.Socheck that yourcontentsinsurancecoversmoving.

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Five ways to make packing and unpacking easier1. Startpackingasearlyaspossible—atleastsixweeksbeforeyoumove—beginningwithnon-essentialitems.

2. Labeleachboxsoyoucanrememberwhatyou’veputinthem,markingthem‘fragile’iftheyhavebreakableitemsinthem.

3. Countthenumberofboxesyouhavetohelpavoidthingsgettinglost.

4. Wrapliquidsupwellinplasticbags,andtapebolts,nutsandscrewstodisassembledfurnituresoyoudon’tlosethem.

5. Leaveclothingincupboarddrawerstoavoidunnecessarypacking.

Well done! You’ve arrived. Now sit back and enjoy your new home.

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