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Recently, the ABS said first home buyers were an increasing share of property purchasers, taking advantage of a softening market and improved access to finance. We thought it important to let anyone thinking of buying their first property what to consider.
Know your limits – don’t just house-hunt. Your maximum purchase price is dependent on:
- Borrowing capacity – ignore online calculators, which don’t account for income complexities, other debt or Lender policy.
- Savings – do you have a deposit of 20% (or 25%, including acquisition costs); do you NEED 20%?
How you can purchase without 20%:
- Lender offers, Lender’s Mortgage Insurance and the First Home Loan Deposit Scheme.
- Gifts (e.g. from parents) – must be non-repayable, otherwise it is just another loan.
- Parental Guarantees – security (equity in an existing property) or income (very strict criteria).
A purchase isn’t just about what you pay for the property:
- Stamp duty – are you exempt or eligible for discounts, grants – and Government fees
- Conveyancer/ Solicitor fees
- Insurance, Utilities, Rates/ Body Corporate fees
Rent-vesting – live (rent) where you want, but get into the market through an investment property purchase to build equity
You’ll also hear about the one that got away! We’re not here just for the complex or high-value deals, we want to help anyone looking for finance.
Enjoy; we’ll have property strategy tips for first home buyers in the next pod.
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The Long Property Show provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Nothing in the Long Property Show constitutes legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
