What to look out for when buying a property in NSW

When buying a property in NSW, look past the listing photos to the things that can cost you later: what's being built nearby, the condition of the building, the strata scheme's finances, clauses in the contract, unapproved building work, and risks such as flooding and noise. Most of these are written down somewhere before you buy. The trick is knowing where to look.

The open home shows a property at its best. These are the questions that tell you what it's really like to own.

1. What could be built next door?

A new apartment block or a big renovation next door can change your sun, views, privacy and peace for years. Search the NSW Planning Portal for development applications (DAs) and complying development certificates (CDCs) near the address, and check the zoning on the planning certificate. NSW's newer housing rules allow more homes near some stations and town centres, so a quiet street today may not stay that way.

2. Is a special levy coming?

For apartments and townhouses, check the strata report. If the capital works fund is low and the 10-year plan shows big repairs ahead, owners may be asked to pay a special levy. Look for levies raised, proposed or deferred in the meeting minutes.

3. Is the building leaking, cracking or in a dispute?

Water leaks, waterproofing failures, cracking and concrete cancer are among the most expensive building problems. In a strata building, owners discuss them in the minutes long before buyers hear about them. Also check for legal disputes and the NSW Building Commission's register of orders on apartment buildings.

4. Was that extension ever approved?

Extensions, decks, pools and granny flats should have council approval. Check the contract for an occupation certificate or building information certificate. Unapproved work can mean council orders, a lower bank valuation and a bill to fix it.

5. Is there a clause that shifts costs onto you?

Read the special conditions in the contract with your solicitor or conveyancer. Some clauses make the buyer pay levies, limit the questions you can ask, or charge high interest if settlement is late. A single deleted line can move the seller's costs onto you.

6. What did the building inspector really find?

Read the whole building and pest report, especially the areas the inspector couldn't access, the safety hazards and the termite findings. Ask about anything marked for further investigation.

7. Could it flood?

Check the planning certificate's flood answers and the council and state flood maps, and get an insurance quote early. A basement car park, a low-lying street or a nearby creek are all worth a closer look.

8. What's it like on a Monday?

Visit at different times. Check for flight paths, helipads, main roads, rail lines, schools and licensed venues nearby. The open home might have been on a quiet Saturday.

9. What will it really cost?

Add up the deposit, transfer duty, legal and inspection fees, loan costs and ongoing costs such as strata levies, council rates, water rates and insurance. Make sure your finance is approved for this property, not just in principle.

How WIBI helps

WIBI reads the documents and public records for a property and tells you, in plain English, what could cost you before you sign. It checks nearby development, zoning, flood and noise maps and government orders for the address, then reads the contract, strata report and building and pest report you add. Every finding shows where it came from. WIBI isn't legal advice, a valuation or a building inspection, so keep your solicitor or conveyancer and your inspector involved.

Questions

What should a first home buyer look out for in NSW?

The same things as any buyer, plus the full cost of buying. Check the contract with a solicitor or conveyancer, get a building and pest inspection, read the strata report for apartments, look up nearby development and confirm your finance and any first home buyer concessions before you commit.

What are red flags when buying an apartment?

A low capital works fund, special levies proposed or deferred, recurring leaks or waterproofing problems, unresolved defects, legal disputes, and orders on the building's register.

What are red flags when buying a house?

Unapproved extensions or pools, major structural defects, termite activity, flood or bushfire risk, easements that limit what you can build, and large developments planned nearby.

Should I check development applications before buying?

Yes. A DA or CDC next door can affect your light, views, privacy and noise for years, and it's public information you can check before you buy.

Can I pull out after exchange in NSW?

For most private sales there's a five business day cooling-off period, but you lose 0.25% of the price if you pull out. There's no cooling-off at auction, so do your checks first.

Keep reading

• First home buyer checklist for NSW
• Buying a tenanted property in NSW: what to check
• Property due diligence in NSW: the full checklist
• NSW cooling-off period and 66W certificate

General information only, not legal, financial or building advice. See our Terms of use.