Starting out in property as a first home buyer can be tough if you aren’t sure where to begin.
For some first-time homeowners, organising finances and determining your purchase capacity can be a very overwhelming process.
Here are three questions we recommend for first home buyers to think about if they are looking to enter the property market in 2022.
Have you done your research on location?
Doing your own research on the location you want to purchase in is very important. Whilst you may ask your family, friends or property professionals for advice, you should do your own research on property websites to see if the location is suitable for you.
Three attributes to consider before purchasing your first home is the location, layout and lifestyle. You should identify the type of home and suburb you want to live in and ensure it is suitable for your lifestyle. For example, if you have children, it is important to research local schools, public transport and public facilities are close by to determine if the area is right for you.
If you know what you want, but you are having trouble as it is a competitive market, a Buyer’s Agent may be the solution.
A Buyer’s Agent is a real estate professional who will assist you in the process of purchasing a home. Having a Buyer’s Agent can offer real value when it comes to securing the deal and may be able to help you save time along the way. The difference between the listing agent and a Buyer’s Agent is the listing agent is focused on assisting the seller of the house whereas the Buyer’s Agent is focused on getting you the right deal. If you are interested in exploring a Buyer’s Agent, click here and you can be connected to a Buyer’s Agent in your preferred area.
By making smart property decision for your first home, it will help you prepare for your future.
Do you know the upfront costs of buying a home?
It is important you accommodate for all upfront costs and try and reduce any if possible.
Typical upfront costs associated with purchasing a home can include:
- Stamp Duty;
- Mortgage Transfer Fees;
- Conveyancing Fees;
- Lender’s Mortgage Insurance; and
- Build & Pest Inspections.
Quick Facts:
If you are a first home buyer, you may be eligible for a transfer duty concession if your property purchase meets certain requirements.
If you are purchasing an established home, it is the First Home Concession, and if you are purchasing vacant land, it is the First Home Vacant Land Concession.
If your established home is valued under the price threshold and you meet all the criteria requirements, you could save up to $15,925 on stamp duty.
The First Home Guarantee assists first home buyers enter the property market with a deposit as little as 5% and avoiding paying Lender’s Mortgage Insurance. To find out if you are eligible for this Government Initiative, click here. Alternatively, you can complete this online homeownership form and we will assess your eligibility.
Are you eligible for Government Initiatives to help with your deposit?
One of the most common questions we are asked is “how much do you need for a house deposit?”. Unfortunately, there is no minimum set figure you need for the banks to deem you ready for homeownership.
The total amount of deposit required may depend on the lender and their lending criteria. Most banks require a minimum of a 5% deposit, but you will be required to pay Lender’s Mortgage Insurance. Two benefits of having 20% deposit is you are not required to pay Lender’s Mortgage Insurance and your weekly mortgage repayments will be more affordable, compared to a 5% deposit.
If you are a first home buyer, it is important you know what Government Initiatives you are eligible for that can help with your deposit as you’ll only be eligible to use them for your first home.
The Government Initiatives for First Home Buyers
Three Government Initiatives that can help with your deposit are First Home Owners’ Grant, First Home Loan Deposit Scheme and the Family Home Guarantee.
The First Home Owners’ Grant
The QLD First Home Owners’ Grant assists you with $15,000 to use with your deposit for your first home, if you meet the certain criteria. The First Home Owners’ Grant amounts vary depending on the State or Territory you are purchasing in. For more information on this Government Initiative, click here.
The First Home Guarantee
The First Home Guarantee is a Federal Government Initiative to help eligible first-time buyers save for a deposit and purchase their first home sooner. By using the First Home Guarantee, eligible first-time buyers can enter the property market with a deposit as low as 5% without needing to pay Lender’s Mortgage Insurance. For more information on this Government Initiative, click here.
The Family Home Guarantee
The Family Home Guarantee is a Federal Government Initiative to help eligible single parents purchase a family home with a deposit as little as 2%, regardless if they are a first-time buyer or previous owner-occupier. For more information on this Government Initiative, click here.
Get started on your home purchase
If you want to become a homeowner in 2022, but not sure where to start, you’ve come to the right place. Contact us here or call us at 1300 248 514 – one of our friendly team members will soon make the process easier for you by providing you with the information you need to begin your journey.
Alternatively, click here to fast track your application to see what the future of homeownership holds for you.