A Quick Smart Guide to Buying Your First Property (Infographic)

January 13, 2016 - Posted in First Home Buyers, Money Saving


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So you’re looking to buy your first home. You’re going to need to know a few things right off the bat – an informed buyer is a smart buyer.

What’s Your Budget?

This is the first thing you need to know because it is going to determine both how much you’ll need for a deposit, and the location and type of property that you’ll be able to afford to suit your needs.

Things to Consider

  • Title search and registration fees (between $6-7000)
  • No more than 28% of your income before tax income should go towards repayments
  • Conveyancing and legal costs (around $1000)
  • Government fees – (after Stamp Duty Concession)
  • Contents Insurance costs (variable)
  • Property inspections (around $500)
  • Council rates and water – (around $1000)

Your Deposit

  • Usually at least 5% of the purchase price
  • The larger your deposit the lower your interest rate could be
  • Pay more than 20% and avoid Mortgage Lender’s Insurance

Choosing a Location

Once you know your budget, you can look at some locations.

Things to Consider

  • Distance from your work?
  • Public transport options?
  • Available amenities?
  • Capital value growth rate?

Choosing a Type of Property

You’ll also need to consider what type of property you’d like to live in:

  • Large Home?
  • Small Subdivided Home?
  • Townhouse or Villa Unit?
  • Small block Apartment?
  • High Rise Apartment?

Things to Consider:

  • Proximity to neighbours?
  • Body corporate fees?
  • Will your family grow?
  • On or off-site amenities?
  • Garden maintenance?

First Home Owners Grant

You can receive $10, 000 from the government if you are buying or building a new home valued up to $750,000.

Are You Eligible?

To be eligible for the FHOG you must:

  • Be an Australian citizen or permanent resident
  • Be over 18
  • Be buying your first home in Australia
  • Occupy the home for at least 6 months within 12 months of settlement
  • Apply within 12 months of settlement

If you’re not, don’t fret – a mortgage broker can suggest alternative options to help you get your first home.

If You Are Eligible

  • You pay stamp duty on your new home
  • There are additional concessions and exemptions

Need Professional Mortgage Advice?

Multi-Choice Home Loans in Queensland make the process smooth and easy for you. We’ll even come to you and take care of every aspect of the first homeowners grant for you as well as all other necessary paperwork.