Things to know when buying your first home!

July 13, 2017
Sandra Heinzlmeier

Buying property can be a very daunting process, especially as a first home buyer. Here at Mortgage Choice Indooroopilly, we strive to make the process as smooth and as easy as possible. With the Queensland First Home Owners Grant (FHOG) being extended until 31st December 2017, now is the perfect time to speak to the team about the buying process and your eligibility to purchase a new home.

The First Home Owners Grant was created to assist first home buyers with getting into their first home sooner, as it can reduce the amount of savings required for a deposit. The current grant in Queensland is for the amount of $20,000. Some of the basic requirements include being a first-time buyer, being at least 18 years of age and being a permanent resident of either Australia or New Zealand. You are eligible for the Queensland First Home Owner’s Grant if you are building or buying a brand new home up to the value of $750,000 – including off-the-plan homes. For the complete list of requirements and to check your eligibility, please give us a call.

The important thing to remember is that you are trying to break into the property market and purchase your first home. It’s also important to manage expectations and sometimes it may be better to purchase a property which may not be your dream home in order to get your foot in the door.  Once you’re on the property ladder, you can start building equity for future purchases.

Researching properties and the local market is also very important when it comes to buying as it can help to ensure that you don’t pay more for a property than what it’s worth. This not only helps with the immediate purchase price, but also allows more room for future growth of the property. There are various online property services that can be utilised in your research. For example, an RP Data report can be a great tool when it comes to negotiating on purchase price. Here at Mortgage Choice Indooroopilly, we have a subscription to RP Data to assist our clients with researching their next purchase. RP Data reports can help to answer questions such as:

  • How long has the property been on the market?
  • What did the current owners pay for the property?
  • Have they made any improvements since they purchased the property?
  • What is the approximate value based on sales of comparable properties in the area?

If you have your eye on a property and would like an RP Data report, please just let us know and we can provide it to you free of charge!

Last of all, it is important to realise the upfront costs associated with purchasing a property. On top of your purchase price you also need to consider the following fees that may apply –

  • Stamp Duty if applicable (government fee) - There are concessions offered to first home buyers depending on the purchase price of the property. We can calculate Stamp Duty for you if applicable
  • Registration of Mortgage (government fee)
  • Registration of Transfer (government fee)
  • Lender Settlement (lender fee) – This can very between $0 and $1,000 depending on your scenario, however the average fee is around $200
  • Legal Fees (your solicitor/conveyancing fees)
  • Building & Pest Inspection fees
  • Lenders Mortgage Insurance if applicable – We can help calculate if you will incur Lenders Mortgage Insurance (LMI).

Here at Mortgage Choice Indooroopilly, we can help calculate your borrowing capacity and deposit required so you know where you stand. We can provide a custom home loan scenario tailored to your needs including all fees and charges, interest rates and repayment amounts. So please don’t be shy! Pick up the phone and give one of our expert brokers a call today on 07 3878 7777.

Posted in: First home buyers

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