Common Pitfalls and How to Avoid Wasting Time or Money
Buying a property is exciting — but it's also easy to get caught out by hidden costs, legal oversights, or rushed decisions. These mistakes can delay your settlement, impact your eligibility for grants, or cost you thousands down the track. Here are some of the most common pitfalls — and how to avoid them.
Failing to Get the Contract Reviewed
One of the biggest mistakes buyers make is signing a contract of sale without getting legal advice. Every contract is different, and even seemingly minor clauses can have major consequences.
Avoid it: Always have a licensed conveyancer or solicitor review your contract before signing. This can reveal hidden risks, give you room to negotiate terms, and protect your rights.
Skipping Building and Pest Inspections
Waiving inspections to speed up a purchase or cut costs can be a costly oversight. Structural defects, water damage, or termite activity might not be visible at first glance, but they can result in massive repair bills later.
Avoid it: Always organise a qualified building and pest inspection, and don't rely on reports provided by the seller unless independently verified.
Overlooking Strata or Owners Corporation Records
If you're buying a unit, apartment, or townhouse, understanding the financial and legal health of the owners corporation (strata) is critical. A building might appear well-maintained, but if the strata fund is in debt or involved in legal disputes, you could be inheriting costly and stressful issues.
Avoid it: In NSW and QLD, order a strata inspection report. In VIC, carefully review the owners corporation certificate and all attached documents. Look for red flags like special levies, upcoming repairs, legal disputes, or low capital reserves.
Underestimating Post-Settlement Costs
After settlement, your financial commitments don't stop. Council rates, water rates, home insurance, strata (owners corporation) fees, and loan repayments all kick in — often sooner than new buyers expect.
Avoid it: Budget ahead and keep a cash buffer for at least the first 3–6 months of ownership. Include these costs in your affordability checks — not just the deposit and loan.
Assuming the Property Will Be Vacant at Settlement
Some buyers are caught off guard when a tenant remains in the property after settlement, even if the lease was due to end. Unless the contract specifically requires vacant possession and formal notice has been given, the tenant may be legally entitled to stay.
Avoid it: Confirm the tenancy status in writing. If you need vacant possession, ensure the contract clearly states this and that the seller gives the tenant the required notice within the required timeframe.
Not Understanding Loan Conditions
It's easy to assume pre-approval equals guaranteed finance, but things can change. Valuations may fall short, credit issues may arise, or lender policies may shift before settlement.
Avoid it: Read your loan documents carefully and maintain financial stability until settlement. If using a "subject to finance" clause, ensure the timeframe is realistic and allows for delays.
Missing Grant or Concession Eligibility
Some buyers miss out on valuable government benefits by failing to meet deadlines or live-in requirements. Others mistakenly assume they're eligible, only to be denied after signing the contract.
Avoid it: Confirm your eligibility early and get professional help with the application process. Be aware of any residency periods or property value limits.
State-Specific Nuances
NSW
- Gazumping risk is real — ensure quick contract exchange and clear terms
- Transfer duty must be paid on the earlier of the settlement date or within 3 months of contract date for existing properties. For eligible off-the-plan purchases you may be able to defer the duty — see when you pay stamp duty for the current rules.
QLD
- Cooling-off period is 5 business days — be careful not to miss the deadline
- Finance and building/pest conditions are common — but must be clearly stated and completed in full in the contract
- Buyers must move into the property within 12 months of settlement to maintain eligibility for stamp duty concessions
VIC
- Shorter 3-day cooling-off period
- Finance and building/pest conditions are common — but must be specified in the contract
- Buyers must live in the property for 12 continuous months within 12 months of settlement to be eligible for various stamp duty exemptions