If you are looking at buying your first home in Australia, you will no doubt be aware of the many complexities of the market, all of which can make taking your first steps on the property ladder a daunting experience.
In this comprehensive guide for first home buyers, Stephen Vick will take you through everything you need to know about the property market in Australia, the grants and schemes on offer for first time buyers, and the variety of different home loans that are available.
The importance of understanding the Australian property market
Australia’s property market is diverse, with each state and territory offering unique opportunities and challenges for first-time buyers. Understanding the market dynamics in your desired location is crucial for making informed decisions.
In recent years, Australian federal and state governments have introduced several initiatives aimed at assisting first-time buyers in achieving their homeownership dreams. These initiatives include grants, concessions and schemes designed to alleviate the financial burden associated with purchasing a property.
First home buyer grants and schemes
One of the most significant incentives for first-time buyers is the First Home Owner Grant (FHOG). This grant provides financial assistance to eligible individuals or couples who are purchasing their first home. The amount of the grant varies across states and territories, so it’s essential to check the specific criteria and eligibility requirements in the location you are intending to purchase.
In Queensland, first home buyers may be eligible for the Queensland First Home Owners’ Grant. This grant provides $15,000 towards buying or building a new house, unit, or townhouse valued at less than $750,000.
In New South Wales, eligible first home buyers can receive a grant of up to $10,000 towards the purchase of a new home valued at $600,000 or less. Similarly, in Victoria, the FHOG offers up to $10,000 for properties valued at $750,000 or less.
Stamp duty is a tax imposed by state governments on property transactions, and exemptions or concessions can result in significant savings for buyers.
Queensland offers stamp duty concessions for first home buyers. This concession reduces the amount of stamp duty payable on the purchase of a property, further easing the financial burden for first-time buyers.
Other states and territories also offer stamp duty concessions or exemptions for first-time buyers, so it is important to investigate the specific circumstances where you are looking to buy.
Quick guide to buying your first home
Buying your first home is an exciting experience, but it does require careful planning at every stage of the process. Below is a step-by-step guide from Stephen Vick to help you navigate through the home buying journey:
- Assess your financial situation
Before you start looking at potential properties, it is essential to determine how much you can afford to spend on a home by evaluating your income, expenses and savings.
There are some key questions that you should ask yourself at this stage of the home buying journey: These include:
- Do I possess adequate savings for a deposit?
- What borrowing capacity do I have?
- How much can I comfortably afford in monthly repayments?
- Can I cover ancillary costs like stamp duty, legal fees, insurance, etc.?
- How will I cope with rising interest rates?
- Have I accounted for other home ownership expenses, like maintenance, repairs, rates, taxes, etc.?
Stephen Vick can help you to answer these and other questions, so that you have a clear picture as to where you stand financially.
- Research the market
Once you have an understanding of how much you might be able to afford, you can start to explore cities, towns and suburbs to find the right location for your needs.
As part of this process, it’s important to consider factors like the proximity to where you work, access to schools and healthcare, the public amenities and public transport, as well as other infrastructure such as roads.
Stephen Vick can also help you to research property prices and market trends in your desired area, to better understand what you can expect to pay for a home in this part of the country.
- Understand the buying process
It is important to familiarise yourself as far as possible with the legal and procedural aspects of buying a home in Australia, such as contracts, conveyancing, stamp duty and more.
For first time home buyers in particular, it is advisable to seek specialist advice in these areas. Stephen Vick is here to advise you on these and any other aspect of purchasing a property and the legal requirements that go with it
- Set your priorities
As you start the process of looking for a property, it is always a good idea to establish your priorities. It can help to make a list of your must-have features and preferences for your new home, such as the number of bedrooms, kitchen layout, car parking, outdoor living space, etc.
It is also helpful to be clear in your own mind as to whether you want to buy an established property, purchase a new build, or buy a house and land package in order to build your own home.
- Start house hunting!
Once you have taken all of the above into consideration, you will be well placed to begin the house hunting process.
Depending the type of property you are considering, there are a variety of ways in which you can search for properties — online, through a real estate agent, or via the services of a property investment specialist.
What home loans are available to first home buyers?
First home buyers can access a variety of different home loans, depending on your specific needs.
For instance, will a variable rate home loan be the best option in your circumstances, or is a fixed rate loan the better option? If you’re self-employed you, might need access to a loan that is more suited to your specific needs.
Stephen Vick specialises in finding home loans for first-time buyers, and can advise you at every stage of the process. This means you will get all the help and support you need to apply for a home loan, giving you the best opportunity of getting a loan from a lender and on terms that are right for you.
Specialist advice for first home buyers from Stephen Vick
Stephen Vick specialises in providing a range of support services for first home buyers. He offers expert advice on how to apply for a range of state and federal assistance packages, including the first-time home builder grant, the new homeowners grant, and first house stamp duty waiver.
To arrange a consultation with Stephen Vick, get in touch via email or call (xx) xxxx xxxx. Make the move into your first home today!
