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First Home Owners this is your time!

December 4th, 2017

First Home Owners this is your time!

With the current market prices at an all time low this is the time to make your first purchase and step into the property market.

A recent article in the West Australian mentions that the “First-homebuyers can pay up to $150,000 less than they would have paid in 2007 for a house in suburbs where the median price is $450,000 or below.”

This means that now is the time to buy. No one has a crystal ball and can tell when the market will be lifting however it is clear to see that when comparing prices from previous years this is a fantastic time to buy. With record low interest rates and government incentives why not?

How much is the FHOG?

New homes

Transactions entered into between 1 January and 30 June 2017 may be eligible to receive $5,000 boost plus the $10,000 grant or the consideration paid to buy or build the house if less than the grant amount.

For eligible transactions entered into on or after 25 September 2013 and on or before 31 December 2016, the grant is $10,000 or the consideration paid to buy or build the house if less than the grant amount.

For eligible transactions entered into between 1 July 2000 and 24 September 2013, the grant was $7,000 or the consideration paid if less than $7,000.

 

Established homes

The grant is no longer available for the purchase of established homes. However, purchasers of established homes will still be able to apply for the first home owner rate of duty if the value of the home is below the current threshold of $530,000.

For eligible transactions entered into between 25 September 2013 and 2 October 2015, the grant was $3,000 or the consideration paid if less than the grant amount.

For eligible transactions entered into between 1 July 2000 and 24 September 2013, the grant was $7,000 or the consideration paid if less than $7,000.

 

TIPS FOR FIRST HOME BUYERS

Being a first home buyer can be an overwhelming process, facing uncertainty of all the challenges and requirements that need to be completed.

Here are five tips that will help first home buyers find success in their first home buy;

  1. Avoid making multiple applications

Although it may not be common knowledge to most, it is important to know many mortgage applications can negatively affect your credit score. This can act as a red flag to credit assessors. It is incredibly important to do your homework, get opinions and assess your options in the process of the mortgages you apply for.

  1. Be aware of first home buyer initiatives

It is important to consider the government initiatives as they are designed to aid first homebuyers to get on the property ladder. There are incentives for both established and new build properties. This is mentioned above.

  1. Consider using a mortgage broker

Taking out a home loan, especially as a first home buyer, can be daunting. Think of talking to a mortgage broker to help you find different options as well as finding the best for your situation.

  1. View saving as a long-term exercise

It is valuable to save as much of a deposit as possible as it can ensure you have the highest possible equity stake in your home and to minimise interest fees. You will need to budget effectively over a period of time before you’ll be in a position to buy.

  1. Determine your credit score

Finding out your credit score gives you how eligible you are for better deals from banks. Some mortgage providers will be open to offering you a contract personalised to your credit score and history.

 

For more information visit the Department of Finance website or click here for the First Home Owners Guide.

 

About the Author

Celestine has been in the Real Estate Industry since 2002. She has competed in some of the most competitive markets in Australia. Combine her strong negotiation skills and keen customer service to achieve the best results for her clients.