Title: Detailed Guide To First-Home Buyers
1Detailed Guide To First-Home Buyers
2By definition, first home buyers are those people
who purchase a principal residence for the first
time. As a new buyer, both excitement and anxiety
rule the state of your mind. Just after a
thought to buy a house, several questions like
what to look in a property, what type of
properties are available in the market, how to
begin the process of buying a property, how to
take a loan, which home loan will suit your
requirements, how to find a real estate agent,
who is the best real estate agent for you etc.,
will be there on the mind. As a new entrant in
the property market, it is fine and natural to
have such thoughts. This blog will answer all the
queries that has a potential to blow your mind.
It will guide you and explain you the entire
home buying process so that you enter the market
with confidence.
3Definition of First-Home Buyer
Anyone who has not previously owned a house or a
flat and also has no property to sell is
classified as a first-home buyer. Or we can also
say that anyone who is getting a mortgage who is
neither a home mover or buy-to-let investor, or
even simply mortgaging is also termed as a
first-time buyer.
4Determine the Purpose of Buying a Property You
know that you have to buy a property but first,
you need to decide the purpose.
What is Your Purpose?
Are you going to buy a property to own it and
move in with your partner and family, or are you
going to buy a property to rent. If you want to
buy a house to rent it further, it means you
want to purchase an investment property. Whatever
the purpose may be, the decision of buying is
once in a lifetime opportunity. It must not be
taken in a hurry. This will probably be one of
the largest investments you will ever make,
unless you decide to buy a luxury car. So, take
the decision wisely. Buying a home is like
investing in a luxury for a life-time. A single
wrong decision can cause you loss, both
emotionally and financially. Before you take
any decision, look into the advantages and
disadvantages of owning and renting a property.
5Advantages of Owning a House
It is a long-term investment. You secure yourself
a valuable asset for life. You own the land and
the building. So, you have a freedom to make
changes inside and out the home premises. Have as
many pets and children you want. You get to
choose the location of your choice.
6Disadvantages of Owing a House
Hidden costs involved stamp duty, loan
establishment fees, and lawyers fees. On-going
costs involved like repairs, council rates and
others. May get difficult to buy a home because a
huge investment is required. You may have to
settle for less due to less budget.
7Determine the Costs Involved
Hire a right real estate agent for yourself if
you are considering to take a big leap into
buying your first home. Real estate agents in
Narre Warren are trustworthy, reliable, and have
years of experience in the real estate industry.
They stay updated with the changes that happen
every day and guide their clients
accordingly. Real estate is quite dynamic and
vast. There are a lot of minute things that a
lay man may not be able to understand or see just
for an example, the unexpected hidden costs
involved. Only an expert can guide you about the
hidden costs. The real estate agents in Narre
Warren will guide you from beginning to the end
and keep everything upright, and transparent.
8Stamp Duty
This is the tax levied by all Australian
territories and states on the property
purchases. This tax is paid by the buyer and is
levied according to the property purchase price,
loan purpose, and the location. The stamp duty
charge differs as per the states. This is one of
the biggest costs that you will have to pay. So,
it is important to consider it and add it into
the buget plan before taking a final
decision. The variation in stamp duty rate
depends on factors like Are you buying a vacant
land or a house. Being a first-home buyer. Buying
a home to rent or to reside Heres good
news! Some states in Australia offer their
first-home buyers a concession on the stamp duty.
9First Home Concession
You can claim this concession for transfer duty
when acquiring your first home but on meeting
the given requirements. The first home concession
is applied only to the homes that are valued
under 550,000 and can save you up
to 15,925. The concession may still apply for a
home valued over 550,000. You can claim it even
if you are not an Australian citizen or PR. But
as a foreigner, you may have to pay additional
foreign acquire duty.
10What is the First Home Buyer Loan?
A home loan is an amount of money that is lent by
a bank or any other financial institution to
finance the purchase of a property. A first home
buyer loan is the type of loan meant for people
who look forward to getting their first foot on
the property ladder. The first home buyers can
opt for loan to ease the home buying process.
There are three types of home loans, like Fixed
Home Loan Variable Home Loan Split Home Loan
and Others
11Split Home Loan
This is the type of home loan where you divide
your home loan into multiple parts like you can
nominate one portion of the home loan to have
fixed interest rate, while you can choose other
portions to have a variable interest rate. So,
this type of loan gives you the best of both the
world.
12Why should you avail the benefits of the first
home owners grant?
Purchasing a home involves a huge amount and as
you may move ahead with each step, the cost
associated with it can add up rapidly. This
grant is a free funding by the government. It is
not a short-term loan that you have to pay back.
Some states in Australia offer grants of up to
15,000, which can be of a great help when
saving deposit for your first dream home.
13GET IN TOUCH
3 Withers Ct, Pakenham VIC 3810, Australia 61
423 277 447 manny.singh_at_freedomproperty.com.au
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etailed-guide-to-first-home-buyers/
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