Buying a home for the first time can be one of the most exciting times in your life - it can also be one of the most complicated too! However, if you're prepared for it, buying a home doesn't have to be a nightmare and it leaves you with more time to be excited about the future.
First home buyers are blessed with a range of government benefits designed to help people break into the property market. Read on for more information about purchasing your first home.
First Home Buyers Grant
Introduced in July 2000, the First Home Owner Grant (FHOG) is an initiative developed by the Federal Government to encourage first home buyers to enter the property market. In New South Wales the FHOG launched at $ 7,000; however, this has been increased to $ 14,000 for an existing home and $ 21,000 if building a new home. The increased grant is only valid between October 14 2008 and June 30 2009, after which it will return to $ 7,000.
Am I eligible for the First Home Owner Grant?
Eligibility is based on a number of points. You must meet the following requirements in order to apply for a FHOG:
- You must be buying the property as a person, not a company. - Be at least 18 years of age. - At least one applicant (you or your spouse) must be an Australian Citizen or Permanent Resident. - At least one applicant must occupy the residence for at least six months of the first 12 months after purchase. - You or your spouse must not have previously received a First Home Owner Grant. - You or your spouse must not have previously owned a residential property.
The application process is fairly simple and just requires the applicant to fill out a First Home Owner Grant application form.
One of the many costs involved in purchasing a house is stamp duty. Fortunately for first home buyers in New South Wales, stamp duty is exempt for purchases of up to $ 500,000 and significantly reduced for purchases between $ 500,000 and $ 600,000.
Legal and Conveyancing Fees
Purchasing a home also involves a number of legal or conveyancing fees. Most people will hire a lawyer or conveyancer to handle the paperwork and costs can vary depending on the complexity of the purchase. These fees typically won't blow your whole budget, but it's good to have some money set aside just in case.
Pre-Purchase Property Inspections
An absolute essential when buying a property is a pre-purchase property inspection. This will ensure that the house or flat you're purchasing is in good condition. A building report will highlight whether or not your potential home is suffering from things such as timber rot, dampness or pipe leakage, pest infestation, termite damage and much more.
Why should I organise a property inspection?
There are a number of benefits associated with these types of benefits, including:
- Peace of mind that the property is in good condition. - Provides you with leverage if there is a fault in the building, i.e. room to negotiate the price down. - If purchasing a flat, apartment or anything within a strata-run block, a strata report will indicate any problems with management or any upcoming renovations and developments. This is useful information as strata fees usually increase with new developments. - Will ensure that your new residence is free of termites, rats, mice and any other nasty pests.
Basically, a pre-purchase property inspection could end up saving you from a bad purchase or allow you to negotiate a much lower price for the property. It also means that you'll know what to fix as soon as you move in!
This article was provided by Gavin Childs Property Inspections.