Buying your first home can be one of the most exciting experiences, and also the most daunting. To assist you on your first steps in your real estate journey, we have put together a guide on what to look out for, and what concessions and assistance is currently on offer for first home buyers.
What to watch out for:
- Emotion – This is a hard one because the excitement of buying your first home can often cloud rational thinking. Your first home will probably not be your forever home so try and think of it more as an investment, and make the decision based on fact rather than the feels.
- Background check – Building and pest inspections are a must, and in the case of unit and apartments do a thorough search and check on the strata report. This can avoid any nasty surprises later.
- Cost plus plus– The cost of the home is not the only sum you need to be aware of. Stamp duty, conveyancing costs, legal fees, body corporate costs, maintenance, moving costs, insurances, rates, mortgage fees all need to factored in.
- Finance pre- approval. Have this done well ahead of time so that you know how much you can afford to spend on the property and will minimise any risk of over extending yourself.
- Contract – Take the time to look at and get professional advice on the sale contract.
What’s on offer:
- If you’re a first homebuyer, you may be entitled to a concessional rate of transfer duty or even an exemption from paying it altogether under the First Home Buyers Assistance scheme (FHBAS).
Unlike the First Home Owner Grant, the FHBAS applies to:
-buying an existing home
-buying a new home and
-vacant land on which you intend to build a home.
- New and existing homes
- Vacant land
https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/assistance-scheme
- As a first homebuyer, you may be eligible for a transfer duty concession or exemption.
If your home is valued at less than $650,000, you can apply for a full exemption so that you don’t have to pay transfer duty.
If the value of your home is between $650,000 and $800,000, you can apply for a concessional rate of transfer duty. The amount you’ll have to pay will be based on the value of your home.
https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer
- First Home Owner Grant (New Home)
$10,000 towards the purchase price, in addition to the First Home Buyers Assistance Scheme benefits
Requirements:
-Buying or building your first home
-It’s a new home that no-one has lived in before
-It’s worth no more than $750,000.
– Find out about more requirements
To qualify as a first homebuyer, you must be purchasing the first home you or your spouse have owned or co-owned in Australia, although there are some exceptions.
You must also move into the property within 12 months, and live there for at least six continuous months.
You must be:
- an Australian citizen or a permanent resident of Australia
- at least 18 years old.
To help you find the property that best suits your needs and make your dream of home ownership become a reality, talk to your local Stone agent who is there to assist you wherever possible.