Buying your first home should be an exciting and satisfying experience. With a little knowledge and assistance from our friendly Finance Manager we can make it a dream come true. From day 1 we'll walk you through the process of getting your new home and help you apply for the Governments First Home Owners' Grant (FHOG). Injoy Finance provides ongoing support to all our clients, we continue to offer advice and support even after your property is settled. It’s simple, give us a call now on 1300 858 838.
Things You Should Consider When Buying a Property
Have you noticed that you are constantly just missing out on purchasing the home of your dreams? What will give you the edge?
Have a Property Wish List
Have a list of the features you 'must have', 'would like to have' and a 'will not have' in a property. By doing so, the real estate agent knows exactly what you are looking for and will only tell you about properties that fit YOUR criteria. Think of how much time you will save!
Form A Good Working Relationship With Your Real Estate Agent
The agent is a key part of possibly the biggest financial decision you will make in your lifetime. They will provide you with invaluable information about your interested properties and advise you of new listing before they appear on the market.
Property defects can happen
Make sure you arrange both building and pest inspections on the property you wish to make an offer on. It's a property you will live in for years, maybe even a lifetime, don't take the risk!
Know if you're entitled to any financial assistance
If you are a first homebuyer, you may be eligible for a First Home Owner grant of $7000 from the Office of State Revenue. You may also be eligible for an exemption of stamp duty.
Need a deposit but your cash is tied up?
If you have your money tied up in another home or a Term Deposit, Deposit Guarantee is a substitute for cash between signing a contract and settlement.And, if you are getting a gift of money from family you can use a Deposit Guarantee to make the deposit, and the gifted funds don’t need to be paid until settlement day.
Last but not least, before you do any house hunting...
Apply for pre-approval from a lender
Before you go looking for properties, you should understand if you can obtain a loan and how much. A pre-approval will determine whether you are eligible for a loan, the amount available, and you will also be able to determine a purchase price. The pre-approval is free and is valid for three months whilst you look for your property.
We can arrange this for you!!
First Home Owner Grant
The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.
Under the scheme, a one-off grant of up to $7000* is payable to first home owners that satisfy all the eligibility criteria. As a basic rule, you are eligible if you are an Australian citizen or permanent resident, buying or building your first home in Australia, with the intention of occupying it as your principal place of residence within 12 months of the settlement. Eligible first home buyers can receive the grant regardless of their income, the area in which they are planning to buy or build, or the value of their first home. The grant is not means tested and no tax is payable on it.
Stamp Duty Exemption
The government has recently announced cuts in stamp duty for vacant land, off the plan purchases and newly constructed homes in NSW. Under a two-year plan beginning 1 July 2010, no stamp dutywill be payable on off-the-plan contracts for sale of homes, in the pre-construction stage, worth up to $600,000.
There will be a 25 per cent cut in stamp duty for those who buy later in the development process, once construction starts or a home is newly completed.
First home owners will also be eligible for these stamp duty incentives, in addition to residual benefits under the existing scheme.
People aged over 65 purchasing newly-constructed homes worth up to $600,000 will also pay no stamp duty.
This exemption applies irrespective ofthe stage of a home’s construction, however, will only apply to those people aged over 65 selling their primary place of residence.
Developer Contributions Cap
As part of the initiatives, the NSW State Government has introduced a $20,000 cap on local government development contributions for new residential dwellings, which came into force yesterday.
New ‘ad valorem’ tax
Contrary to the strategic objectives of the stamp duty initiatives and caps on developer contributions, the Government intends to proceed with the new 'ad valorem' tax on land and property transfers.
As of 1 July, 2010 the following rates will apply:
- $190 for property values less than $500,000
- 0.2% for property values between $500,000 and $1million
- 0.25% for property values above $1million
