First Home Buyer Tips
By Advantage Property | 25th Feb 20
As the Melbourne property market is expected to continue to see good capital growth over the next 12 months it has left First Home Buyers once again fighting it out and often missing out on the keys for their first home. There are a few things First Home Buyers need to know which could help give the winning edge.
1. There’s a new scheme available for first-home buyers.
From January 1st 2020, there’s a helpful new scheme available for first-home buyers. The new federal First Home Loan Deposit Scheme allows eligible first-home buyers (who meet a specific criteria) to take out a mortgage by providing just a five per cent deposit.
As most banks usually require a 20 per cent deposit, the scheme will allow first-home buyers to secure a home faster.
The new scheme also means that approved first-home buyers can avoid paying lenders mortgage insurance (LMI), which can cost thousands.
2. The First Home Owner Grant.
Besides the First Home Loan Deposit Scheme, there are some other avenues available which assist first-home buyers.
The First Home Owner Grant, which was introduced in 2000, offsets the effect of GST on owning a home.
Although the scheme, which can be worth up to $20,000, is available nationwide, the amount offered to those buying a home varies between states and territories.
3. Stamp duty exemptions.
For some first-home buyers, a stamp duty exemption may be available.
A partial or full exemption can lower the tax you pay when purchasing your property, which considerably cuts costs.
Much like the First Home Owner Grant, however, the rules vary between states and territories.
In New South Wales, for example, first-time homeowners are exempt from stamp duty if the value of the home is under $650,000.
4. Think five years ahead.
While it’s important to consider what you can afford now, it’s also smart to think ahead. After all, the purchase price is just the beginning when it comes to owning a home.
To make sure you’re prepared to buy a home, be sure to consider all of the costs that are associated with owning a home, including insurance and maintenance.
It’s also a good idea to consider your long-term plans – do you plan on changing jobs soon? Are you planning on having children? Do you need a home office space? Are you interested in the schools in the local area?
5. Ask for help from experts.
When it comes to buying a property, there’s no denying that the process can be a little… confusing.
With a home being one of the biggest purchases you will ever make, it’s important to surround yourself with experts and get professional advice throughout the process.
It’s worth speaking to a mortgage broker to see what you can afford and get a competitive loan a well as a Buyers Advocate.
Their knowledge can help guide you through the ins and outs of the process, and ultimately, help you make choices that work for you.