Everything to consider as a first home buyer
It’s one of the most important and exciting times in anyone’s life – your first home. As with anything new, you may either have little knowledge or feel overwhelmed by all of the information out there. Marigold not only offers you competitively priced House & Land Packages by some of Australia’s top builders, but our sales team are here to guide you through owning your first home. Here are some of our top tips.
Understanding Your Financial Situation
Taking a holistic view of your finances requires more than just saving for your deposit, it requires a realistic understanding of all the costs associated with buying a home, from fees and stamp duty to the fact that you will be solely responsible for paying all the maintenance and upkeep of your home. This understanding will allow for a happy transition to a homeowner with minimal surprises along the way. When building a home, this entails understanding expenses like site costs, perimeter fencing and landscaping. These are all costs that are not covereed in your build price, so saving sufficiently and allocating appropraite budget to them is important.
Your deposit matters
The usual aim is to save up 20% of the loan value to avoid lenders mortgage insurance (LMI) and make your mortgage repayments far easier in the long run. However, it is possible to purchase a home with a deposit of far less, just be aware of the extra cost you will incur. Discuss your situation with a lender and they will provide the best and tailored advice for you!
The First Home Owners Grant
The First Home Buyers Grant currently offers Victorian applicants buying or building a new home (valued up to $750,000) to receive $10,000 from the government to go towards their new home.
That’s right, $10,000 from the government for nothing! Pretty sweet huh?
To find out more, and check eligibility requirements, click here
Saving on stamp duty
If you buy an established home, you will most likely pay land transfer duty (otherwise known as stamp duty).
Depending on the value of your home, you may be able to claim a duty exemption or concession.
First-home buyer duty exemption – A one-off duty exemption is available if your new home is valued up to $600,000 and will be your principal place of residence (PPR).
First-home buyer concession – You may be eligible to claim a discount on your stamp duty if your new home is worth between $600,001 to $750,000 and it will also be your principal place of residence.
When you buy a block of land, stamp duty is only calculated on the value of the land, which may mean you will not be required to pay for stamp duty at all. Whooppee!
You can find out more about the First Home Buyer exemption or concession here.
First Home Super Saver (FHSS)
The First Home Super Saver scheme is a way for First Home Buyers to save money in their super funds and then use those savings towards the purchase of their first home.
The scheme can be used to purchase a new or established home and if you are purchasing your first home along with somebody else, where this will also be their first home, you are able to pool their contributions and combine them with yours.
The FHSS can help you save the following:
- Up to a maximum of $15,000 in any one financial year
- Up to a maximum of $50,000 across all years
- You will also receive an amount of deemed earnings that relate to those contributions
To find out more, or check your eligibility, visit this link .
Always seek pre-approval
This last step is such a useful tool. A lot of people start looking for house and land without going to see a lender first. This doesn’t make a lot of sense because you’re in the market blindly looking for something that you have no idea that you can afford. Pre-approval is an indication from your lender of your borrowing capacity (the amount the bank is willing to lend you). This amount is based on your income, deposit, and how you spend your money (time to cut back on Uber Eats!).
Reach out to the Marigold Sales Team on the methods below, who can put you in contact with a lender.
Buying your first home is an extremely rewarding experience and we hope this list has given you some pointers to guide you through your homeowning journey.
Our friendly sales team are always happy to help answer any queries you may have.
If you wish to speak to our sales team, please feel free to reach out on either of the following methods:
Phone: 1300 888 181
Emails: info@marigoldtarneit.com.au
