Steps to Buying an Australian House and Land Package

1. Reserve a property

Once buyers have chosen the land and house they are happy with, they pay a good-faith deposit (usually A$1,000 – A$5,000), which allows the agent to apply to the developer to reserve the land. Before the contract is signed, if the buyer changes their mind, this good-faith deposit is refunded in full; if the contract is signed, it forms part of the deposit. For overseas buyers, Aobo Realty will assess your financial capacity in advance to determine the type and price range of property you can purchase.

2. Sign the land contract and building contract

The developer provides the purchase contract to the buyer or the buyer's solicitor. The buyer signs after consulting their own solicitor and fully understanding the contract. At the same time, the developer also signs the purchase contract and provides the buyer with a copy signed by both parties, at which point the purchase contract takes effect.

3. Apply for FIRB approval

Overseas buyers submit a purchase application to the Foreign Investment Review Board (FIRB). This step applies only to overseas buyers. The buyer needs to complete an application form and submit it to the FIRB for review, a process usually handled with the assistance of the buyer's solicitor.

4. Pay the land deposit and building deposit

Within the timeframe specified in the contract (usually 14 calendar days), the buyer pays 5% – 10% of the land value as a deposit. This money must be paid into the trust account of the developer's solicitor. At the same time, a 5% building deposit is paid into the builder's nominated account. Buyers who require a loan must have sufficient funds to complete the land settlement and apply for a construction loan; Aobo Realty can assist throughout the entire process.

5. Land settlement

After the land title has been registered, the land settlement process takes place. The buyer pays the balance of the land and the land stamp duty, at which point the land title is transferred into the buyer's name. This process is completed independently by the solicitors for the developer and the buyer.

6. The builder arranges the building permit and prepares to start construction

Once the builder receives confirmation that the buyer's land transfer has been successfully completed, they need to arrange the relevant building approvals and carry out preparatory work. This process usually takes about one month.

7. Start building and pay by installments

The house construction process in Australia is mainly divided into five stages: slab, frame, lock-up, fixing and complete. The building contract sets out in detail the amount payable at the end of each stage. At the end of each stage, the builder carries out an inspection of that stage of construction and issues the corresponding invoice. Once the inspection is passed, the buyer pays the builder the amount for that stage in accordance with the contract.

8. Final inspection before settlement

Once the house is completed, the developer invites the buyer or the buyer's representative to carry out an inspection. Any issues found during the inspection are recorded, and the developer will then arrange for them to be rectified. If any problems arise with the house within three months of settlement being completed, the developer will also be responsible for prompt repairs. Under Queensland property law, the structural warranty period for a property is 6 years.

9. House handover

On the day of settlement, the buyer pays the balance of the house to the developer, after which the buyer can move into their new home. For overseas buyers who need it, Australia has professional property management agencies that manage the property, including leasing and maintenance.