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5 Top Tips For a First Home Buyer

Will you believe us if we tell you that it’s completely possible to own your dream home just few years into your work life?

5 Top Tips For a First Home Buyer

Will you believe us if we tell you that it’s completely possible to own your dream home just few years into your work life? Well, if this looks like a distant dream, a dream nonetheless, let us bring you closer to it. Let us apprise you of the possibilities and how we can make that dream a reality for you.

You would definitely want to read through these quickers, the top tips that we have collated for a first-time home buyer like you to help you understand what you are aiming for.

Research, research and more research

We just cannot emphasize enough on this point. Starting with assessing your own credit worth, eligibility, to the property you want to own, the neighborhood, the community, things like work to home commute, amenities, types of loans available, kinds of interests that you can opt for etc.

This list can be endless and quite overwhelming, especially for first-timer. But reach out for help, connect with the consultants or brokers who can hand-hold you through the entire process and get you the deal you want.

The deposit amount

It is advisable to save as much as you can in your initial work years because then you’ll be able to make the deposit figure from your end to the maximum. You should be aiming to meet at least 20% of the total property amount as deposit, so you can get 80% as the loan. If your deposit amount is less than the said 20%, you’ll have to take a Lender’s Mortgage Insurance (LMI) which is an insurance for your bank should you default in the payment.

The First Home Owners Grant (FHOG) and concessions

As the name suggests, this grant encourages the fence-sitters to take the first step and become the first home owners. The grant varies from state to state, and for the state of Victoria, the grant is $10,000. But if your home is in regional Victoria, you are eligible for the FHOG of $20,000.

The first home owner is also eligible for an exemption in the stamp duty payment. This amount too varies state to state, and Victoria offers a $10,000 grant and transfer fee concessions.

The First Home Owners Grant eligibility criteria

The criteria may vary state to state but overall in general, you need to be falling into these to be able to apply for the relevant grant and concessions.

  • The applicant must be a real person and not a legal entity, such as a company or a trust.
  • At least one applicant should hold a permanent visa or be an Australian or New Zealand citizen.
  • Each applicant must be at least 18 years of age.
  • The total value of the property must be below the cap amount. Each state has different property value cap amounts so it’s essential you check this.
  • This must be the first time that you and/or your spouse/de facto will receive a grant under the FHOG Act 2000 in any state or territory.
  • At least one occupant will occupy the home continuously for at least 6 months, commencing within 12 months of settlement or construction of the home.
  • All applicants (including spouses) must not have owned a residential property in any state or territory before 1 July 2000.

The other costs

Keep in mind that the costs don’t just mean the property value. You’ll have to factor in about 3-5% of the property value for extra costs like fees, charges etc without getting a brunt for it later.

You may also like to read more about this in our post on 5 top things to know before taking a home loan.

Do drop us a mail or call us if you wish to understand this in depth. We would be happy to help you unlock your new, first home!

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Melbourne, VIC 3000

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Brisbane, QLD 4000

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121 King William Street
Adelaide, SA 5000

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Perth, WA 6000

(08)9288 0603

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