Consider that key players will help you through the home buying experience. These usually include real estate agents or builders, a conveyancer, a solicitor and finance provider.
Surrounding yourself with the right advisors can take the stress out of buying your first home. When looking to buy your first home there are many government benefits to building a new home as opposed to purchasing an existing property. A new home is classified as a home that has not previously been occupied.
The First Home Owner Grant (New Homes) scheme was established to assist eligible first home owners to purchase a new home or build their home by offering a $15,000 grant.
You can apply for the first home owners grant through your financial institution. Applications must be lodged within 12 months of completion of construction.
To qualify for the grant you need to meet the following criteria:
Must not be purchased through a company or trust.
Each applicant must be over 18 years of age.
At least one applicant must be an Australian citizen.
All applicants and/or spouse/de facto must not have previously owned a residential property.
Total amount of property does not exceed $650,000.
At least one applicant must occupy the property as their principal place of residency for six months.
Another great Government incentive to purchase a new property is the Stamp Duty concession where for properties up to $650,000 you will be exempt from paying Stamp Duty.
Along with the great Government incentives to purchase or build a new home, there are huge benefits to owning your own home as opposed to renting.
Not only is there a huge shortage in rental properties these days, but when renting a property, you are simply helping to pay of someone else’s home. In some cases, you can pay off your own mortgage for the same or only a little more than you pay in rent.
You are limited in the possibilities to make your house a home when you rent. Most landlords will not let you paint, or even hang pictures on the walls.
With your own home the possibilities are endless. Building your home to suit your lifestyle comes with great pride, you can always improve your home and provide a stable environment for your family.
First home buyers will need to provide some amount of deposit towards their property purchase. The amount required is dependent on the cost of the property and the purchase cost of the house. In some cases a family member can pledge security towards the purchase of the property. This is called being a guarantor.
The maximum loan amount your lender will give you is based on two factors, your deposit amount and the amount of income you earn. As a general rule you will require 5-10% of the purchase price as a deposit. Having your loan pre-approved means you're a serious player.
You'll know your maximum purchase price and won't disappoint yourself looking at properties out of your reach. Once you have finances out of the way, it’s time to start looking for your new home.
Have realistic expectations, just getting into the housing market is a great step, so don’t worry if you can’t afford your dream home the first time you buy. Very few people buy just one home in their lifetime.
When buying your first home, house and land packages are the best option as all the hard work is done, and in most cases are the most affordable option with a limited budget. Insist on having a fixed price contract.
Sometimes costs can blow out unexpectedly. Having a fixed price will ensure there are no hidden costs and you won’t get stuck paying more than you had anticipated.
Contact Josh on 1300 350 793 or visit www.zachomes.com.au/access
