Dreaming of a slice of South Australian life? Whether you're picturing a charming property or buying land in Adelaide or building your dream home from the ground up, this article is your friendly guide to navigating the process of buying a home in South Australian.
We'll look at some of the differences you might experience buying property in South Australia compared to the rest of Australia.
We’ll walk you through cooling-off periods to stamp duty costs and even answer some legal questions about solicitor representation. So, grab a cuppa, settle in, and let's get started.
How do you prepare to build a home or buy land in South Australia?
Just like you would in any state across Australia, there are steps you’ll need to take to buy land and build a home in SA. Before the bricks and mortar come into play, some crucial groundwork needs to be done. Here are the essential steps to take:
Before you buy: finding the perfect canvas
The land you choose will significantly impact the style and design of your future home. Here's what to consider when scouting for the ideal block:
Understanding the land: Investigate the soil type, slope and any potential contamination to determine foundation requirements and avoid surprises.
Location, location, location: Research the surrounding area, considering flood risks, bushfire zones, and easements (restrictions on how you can use the land). Don't forget to factor in access for building materials and machinery.
Navigating approvals: Get familiar with the development application process in your chosen council. This might involve plans, inspections and associated fees. Think about any significant trees that may be protected and cannot be removed.
Want to learn more about the property market in South Australia? Take a look at our free state, suburb and property reports.
Choosing your building partner
Now that you've found the perfect plot, it's time to consider your building options:
House and land packages: Many builders offer convenient house and land packages, especially prevalent in residential developments. You can choose a pre-designed house that complements the block's size, orientation, and location. These packages often come with pre-approved building permits, saving you time and hassle.
Buy now, build later: If you're not ready to build immediately, ensure the land purchase contract doesn't have strict timeframes for construction. Remember, annual fees like council rates and utility charges will still apply even before you break ground. Contact your local council and SA Water for more information on these fees.
By carefully considering these steps before you buy, you'll be well-positioned to choose the perfect builder and turn your dream home into a reality.
You might also be interested in: Building a home - what are the costs?
What are cooling-off periods in South Australia?
A cooling off period is a set period of time after you sign a contract to buy a property.
During this time, you can change your mind and cancel the contract without facing significant financial penalties. However, if you do decide to cancel, you may need to pay a small fee, usually a percentage of the purchase price, as a penalty.
The length of the cooling off period varies by location, but it generally gives you a few days to reconsider your purchase before it becomes final.
South Australia offers a slightly shorter cooling-off period compared to other Australian states.
It grants buyers 2 business days after the exchange of contracts or receiving the disclosure statement (whichever is later) to pull out.
In contrast, states like New South Wales and Victoria offer 3-5 business days after exchange.
What are stamp duty costs in South Australia?
South Australia recently implemented a full exemption on stamp duty for first home buyers purchasing any new dwelling. This is a significant advantage compared to other states where stamp duty concessions typically apply only up to a certain property value threshold.
Learn more about how stamp duty is calculated in our article: How does stamp duty work in South Australia?
What are the different property titles in South Australia?
Before buying a property in South Australia, it's important to understand the different types of property titles and how they may affect ownership and responsibilities.
Property titles in South Australia are legal documents that show who owns a piece of land and how it can be used. There are a few different types, each suited to different property types:
Torrens Title: This is the most common type, applying to most freestanding houses. It gives you the most control over the land, with few limitations.
Strata Title: This applies to units, townhouses and commercial properties with shared areas. You'll own your unit but share common areas like hallways and gardens. A group manages these areas and charges fees.
Community Title: Similar to Strata Titles but can include more land (like your backyard) in your ownership. There's a corporation to manage common areas but insurance and rule enforcement differ slightly from Strata Titles.
Company Title & Moiety Title (less common): These involve owning shares in a company that owns the land you occupy. Not as common anymore, but you might encounter them occasionally.
What are solicitor and conveyancer rules in South Australia?
South Australia's rules allow a solicitor or conveyancer to represent both buyer and seller in certain situations (related parties, business partners) with informed consent. Some other states may have stricter limitations or even completely prohibit dual representation.
Some states may have stricter limitations or even completely prohibit dual representation. This can be an advantage in SA if both parties involved trust the same legal professional.
How could the HomeStart Graduate Loan help you buy a home?
Are you a recent graduate with a Certificate III or higher qualification? The Graduate Loan is tailored to help you buy or build a home in South Australia for residential use.
It's a low deposit loan with flexible options starting from as little as 2% (buying a home in South Australia) or 5% (building a home in South Australia). Here is what you need to know:
Competitive variable interest rates available
Fixed or split interest rate options for 1-3 years available
Option to combine your Graduate Loan with a secondary loan to increase borrowing capacity
Fee-free voluntary repayments to help pay off your loan faster for variable rate loans (up to $10,000 in extra repayments per year for fixed rate loans)
Availability of redraw facility
What is the eligibility criteria for the HomeStart Graduate Loan?
To be eligible for the Graduate Loan you will need to:
Hold a Certificate III, diploma, degree, or higher qualification from a university, TAFE or another Registered Training Organisation
Buyor build a home in South Australia that will be used as your primary residence
Be an Australian citizen, permanent resident or hold a skilled migrant status in Australia
Be at least 18 years old.
This guide is just the beginning. To get a personalised plan for your home buying journey and explore your options for loans and grants, connect with an Aussie Broker today.