As we head into the busy Spring selling season, and interest rates remain steady, we are seeing more first home buyers heading into the local market to secure their first property.
Buying your first home is a big step, but also an exciting one! There is quite a lot to consider before buying your first home. To make things easier, we’ve put together a list of things to explore before purchasing your first property.
As a first home buyer in New South Wales, you may be entitled to the Government’s first home buyer grants or concessions. There are two major schemes:
The First Home Owner Grant (New Home) scheme was established to assist eligible first home owners purchase a new home or build their home. A $10,000 grant is available to first home buyers where the value of the new home purchased does not exceed $600,000 or for a property where you enter into a comprehensive building contract, or are an owner builder where the total value does not exceed $750,000.
The First Home Buyers Assistance scheme provides exemptions or concessions on transfer duty for eligible NSW first home buyers. A duty exemption on new and existing homes valued up to $650,000 and vacant land valued up to $350,000. A duty concession on new and existing homes valued between $650,000 and $800,000, and vacant land between $350,000 and $450,000.
For more information, go to this website link:
Drawing up a budget of what you can realistically afford is a great idea. You should factor in any additional expenses to home ownership (covered below under Additional Costs). Once you’ve drafted a personal budget, the next step is to talk to a mortgage broker about the best home loan on the market for you.
It’s vital to do your due diligence before buying a home. This means inspecting the property in person if practical, and ensuring the proper building and pest inspections are carried out. Building and pest inspections do incur a cost, however they ensure there is no structural issues or damage from pests.
Apart from a home deposit and the ongoing cost of mortgage repayments, there are other fees and charges you should be aware of before buying your first home:
Stamp duty can be a considerable cost to factor in when buying your home. The amount of stamp duty you’ll pay is dependent on the state you’re buying the property in. Some states have first home buyer concessions or exemptions on stamp duty. Stamp duty can also be borrowed as part of your home loan.
It is a good idea to have a solicitor or conveyancer look over the contract of sale and mortgage documents before signing a sale agreement. Fees can vary.
Building and pest inspections costs
As mentioned, it’s definitely worth investing in a one-off building and pest inspection before signing a contract, or as part of a condition of sale to ensure your potential home is structurally sound and pest free.
Home and contents insurance
Remember that home insurance is an essential part of the home-buying process. Insuring your home is something that needs to be organised and ready to take effect as soon as you settle on your property. So, make sure you have looked at your options and have chosen an insurance product that best suits your needs and budget.
First home buyers should also research the market fully, including looking at established homes. Older properties may not attract all the government concessions, but could represent better value.
At Harcourts The Property People we have many properties for sale suited to first home buyers. Speak to one of our sales team, or visit our website at www.propertypeople.net.au.