Thousands of dollars in government grants can speed aspiring first home owners on the journey of their dreams, but only if they choose an eligible target like a new house that has never been lived in or decide to buy land and build a house.
Here are 20 things to help first home buyers on their way:
1. Careful budgeting for the future is an essential first step. Be realistic, not only about your current financial circumstances but also about future costs, to work out how much deposit and monthly mortgage payments you can afford.
2. Remember that extra costs can increase the size of the deposit you will need, for instance conveyancing, bank fees and mortgage insurance can cost well over $10,000.
3. Domain chief economist Dr Andrew Wilson says Australian capital city housing markets “are robust and reliable over the longer term with significant financial advantages for home ownership, particularly through taxation benefits”. To expedite getting into the market he recommends buyers should broaden their search to get themselves onto the ladder. That might mean looking in a wider radius than you initially expected.
4. Household budget calculators available online can help, and loan calculators on individual bank and finance company websites are general guides. Alternatively, you could use ASIC Money Smart websites to find these independently useful tools.
5. See if you are eligible for government grants and stamp duty concessions available to first home buyers. These incentives vary from state to state.
6. Victoria offers a up to $20,000 grant and transfer fee (sometimes referred to as stamp duty or duty) concessions. Conditions apply, so check with the state revenue office or government website in Victoria following this link of State Revenue Office.
7. Finance or mortgage brokers provide expert advice on a range of borrowing options, however choosing the right one is essential because they will do the legwork and guide you through the loan application process. Accomplished Property Group is working closely with Tomorrow Finance, which has involved a huge panel of trustworthy lenders. For exclusive special loan offers, please contact our consultant at 1300 933 818 or [email protected]
8. Brokers must be licensed to legally operate. Make sure you only deal with a licensed company or person by checking ASIC’s online register.
9. Ask brokers what commissions they get from credit providers and whether they will also be charging you a fee. Some brokers can be limited to a particular range of products that might not suit your needs or give best value for your money.
10. Once you have a firm idea of what you can afford, make sure you explore your full range of options in terms of where you will live, as well as the kind of house you want and can afford. Our property consultants are here to assist you with suitable suggestions. We have dealt with different communities across Melbourne to give full insights on where and what suits you best.
11. Remember the community you live in will have more impact on your life than the house you choose. Explore locations and talk to existing residents. A trusted property consultant from Accomplished Property Group is always helpful when you need to gain community insights.
12. Consider local amenities; those that are there now or planned for the future. Are there train or bus services? Where is the closest shopping centre or local shops? What are the education and recreational facilities like? Consider the level of quality of the community design including parks and play equipment. Think about what you need now and into the future.
13. Decide on the style of house you want by looking at a wide range of display homes, be realistic about size and the number of rooms you need, and check cost-saving options in terms of fittings and finishes.
14. Decide what housing option best suits your lifestyle and budget. Whether it be an established home, land to build on, completed home or townhouse. Talk with our consultants for clarifying which option suits your situation and lifestyle.
15. Ensure the land you choose will suit the design of the home you want to build or vice versa. Review any planning provisions or design guidelines that may be applicable to your chosen lot.
16. Find out if there are “extra” site costs. For example, some sloping blocks may incur additional costs for retaining or excavation.
17. Make sure you find the right builder. Check out display homes, research builders online, and seek recommendations from any friends or family who have built a house. Ask our Accomplished consultants for unbiased suggestions.
18. For first home buyers wanting to build a sustainable home, the Master Builders Australia (MBA) and the Housing Industry Association (HIA) train builders in sustainable practices. Choosing one with this training can be a good step towards reducing your energy bills as well as helping the environment.
19. If you are building a new home, check the building specifications. What fittings, fixtures and works are included and what is not? For example, are all floor coverings included? Are window coverings (such as blinds) included?
20. Set a bit aside for landscaping. If you buy or build a new home, you will need a little extra money to create a garden.
For more information on building or buying a home with Accomplished Property Group visit www.apgr.com.au/for-sale.