Home > Our Publications > Australian Outlook> 2002 > November

BUYING a home is the most expensive purchase most families will make.
Great care must be taken to ensure the home you buy is good value for money. The vast majority of real estate agents are honest but there have been enough court actions on behalf of unhappy buyers to urge caution.
Read the fine print, ask the right questions, don't buy sight unseen and don't buy without knowing local home prices.
Many people have invested in overvalued properties to find they can only sell at a heavy loss and any capital gains are a long way off. So it is important to get an independent valuation.
Photographs can lie. Ocean views can be a speck of sea only seen by standing on a box.
Watch out for walking distance from school claims. "Walking distance" for an adult may be too far for a child.
You should know the total price when buying a home.
Advertisements stressing a down payment and so much per month do not provide the full story.
And if you are buying a newly built home, the price must include GST, which is currently 10 per cent.
Be wary of bait advertising such as the "offer" of a house at a special price when the offer is not genuine.
The Trade Practices Act bans "third line forcing". It is illegal to demand that a customer purchase goods or services from a third party.
Individuals can bring action in the Federal Court against real estate agents for breaches of the Trade Practices Act in state and territory courts under fair trading laws.