First new home Buyer Tips
The Queensland Government assists first new home buyers to get into a new home by offering reductions in stamp duty and offering a first new home buyer grant. The Victorian government also gives fist new home buyer grants. The grant is designed to get first home owners into the market sooner. If you are eligible for the grant then you will only need a small deposit to get into you first home.
To be Eligible
To be eligible for the first new home buyers grant Queensland you must
• You or your partner must be an Australian Citizen or permanent resident,
• You must be buying a brand new home or building a new home
• You or your partner must not have previously owned property in Australia
• You must be at least 18 years old
• You must be buying or building a brand new home that is valued under $750,000
• To qualify for stamp duty exemption the land purchase price must be less than $400,000
• You must not have received a first home owners grant in the past
• You can only receive the grant if you are an individual not as a company or trustee
• You must move into your new home within 1 year of handover of your new home as your principle place of residence.
• You must remain in the home for a continues period of 6 months
• If your home is bought from a related party then must be bought at market value.
• You may not be eligible if you receive financial help to buy your home.
If you buy your home from a related person you will need to provide evidence of the homes market value when applying for the first time new home buyer grant. If you or your partner receives financial help you must lodge a statutory declaration with your application outlining details of whether the money received is owed by you or has been gifted to you. You must also declare whether the person who gave the financial assistance is related to you and whether they intend living in the home.
How do you apply for the First time home buyer grant
The easiest way to apply for the grant is to do so through the mortgage broker who will arrange your finance. The broker will incorporate the application for the grant with your other loan application documents. The grant is normally paid directly to your financial institution you get your loan from. The grant will not be paid until you have paid at least the greater of a 10% deposit or the grant amount, the contract has been operating for at least a year and you have occupied you home as your principle place of residence. You cannot be in default of your building contract when the grant is paid. Please keep in mind that the information on these pages is general in nature and does not constitute individual financial advice. Governments can change the above criteria at any time. You can get more information about the grant from the Queensland Government website.
What extra costs can a new home buyer expect
When deciding to buy a new home you need consider the extra costs involved.
Do you have to pay stamp duty when you purchase your new home?
What are the costs of hiring a solicitor?
Will you have to pay for mortgage insurance?
How much will it cost to finance the loan during the construction of your new home?
What is the cost of moving into your new home and is your home full turnkey, does it included things like fencing and landscaping?
It is important when buying a first home that you take all cost factors into account. We at NHD can explain to you how a building contract works and the importance of having a full turnkey fixed price contract. Please feel free to visit our first time new home buyer mortgage page for more information on mortgage requirement and deposit required.
Selling your home in the future
Depending on your planed time frame for staying in the home one of the first new home buyer tips you may need to consider what it will cost you to sell your new home. You will have to pay an agent commission on the sale of your new home and you will have to pay stamp duty on the purchase of your next home.
Most people hold a home long enough to pay off some of their mortgage and have had some capital growth. However selling costs always reduce the equity that you have available and if you sell in the short term the selling costs will reduce your capital investment.
Protecting your investment and income
One of the most important first new home buyer tips is advise you to take out full comprehensive insurance on your new home, if you do not and something happens you may end up owing money to the bank without a home to live in. You can also take out insurance to protect your income or insure your loan repayments. The old saying applies here “Plan for the worst and Hope for the best” applies here.