Getting started with home ownership
Australians have had a long-term love affair with owning real estate, and
why not, home ownership brings with it lots of advantages, financially and
otherwise.
The question is how can first home buyers get a start with interest rates
rising and property in our major cities being so expensive?
Probably the most tried and tested way to start is to save, save, save and
build up as big a deposit as possible. This money will also need to cover all
of the additional things like legal fees, pest inspections, building
inspections, removalist fees and the like. These additional costs can be
many thousands of dollars just on their own.
While you’re building that savings record, you’re also importantly showing
a potential credit provider that you could make repayments based partly
on your savings pattern. In lodging a loan application that savings history
may make all of the difference in getting that loan approval through.
Then of course there’s the first home owner’s grant of $7,000.00 tax free.
While not enough on its own, the grant can certainly help reduce that
deposit gap. There are of course lots of eligibility requirements depending
on where you live but the grant is available to eligible people regardless
of their income, the area in which they are planning to buy or build, or the
value of their first home. It however does not extend to a purchase of
vacant land solely.
Other things to note are that each applicant needs to be over 18 and at
least one applicant has to live in the home as their principal place of
residence for a continuous period of six months, commencing within 12
months of settlement or construction of the home.
There are also schemes in various places where stamp duty is waived for
first home buyers whereby eligible first home buyers receive an exemption
on transfer duty and mortgage duty on homes within certain valuation
limits and depending on where you are concessions on duty for homes
again within certain valuation limits. On a standard home purchase that
can be a saving of many thousands of dollars.
As your mortgage broker we are happy to research your options and
provide you with the details necessary to make informed decisions.
While the first home you buy may not be in exactly the area you’re after,
or might be a unit or smaller home, the important thing in the long run is to
get that foot on the first rung of the property ladder.
The Hendrie Group
Michael Crowe
03 97252533
support@hendrie.com.au
Calendly – Michael Crowe – The Hendrie Group
Alphaloan Mortgage Group
Graeme Vimpani
gvimpani@alphaloan.com.au
0411 886 310
