Purchasing a home for the first time is both an exciting and frightening investment as it can be considered one of most important financial decisions ever made.
Once the perfect home is found, you usually want to move in and start renovating immediately but there is so much that needs to be organised prior. Our team here at Carter O’Neill Legal have a wealth of experience having all purchased their first homes and are experienced in navigating property transactions. We can assist you from the initial stages of formal finance approval up until the day of settlement and organising the keys to you.
We recommend reading our article ‘Buying a Property – what do I need to know?’ Which breaks the basis conveyancing process down however, here is some information of special interest to first home buyer:
How much will this really cost me?
Property is typically a long-term investment and is regarded as one of those transactions that fall under the category ‘short term pain, long term gain’. This is because it usually cost your life savings to purchase your first home but over time, you will reap the benefits.
Assuming you are borrowing most of the purchase price, your broker or lender should work through the figures to ensure you are in a financial position to purchase the property and cover other incidental costs. These incidental costs that lots of people ‘forget’ to include are things like legal fees, stamp duty, building and pest inspections, survey and building certificates and government searches and enquiries. Not all these costs will be necessary as it will depend on the property you purchase. To assist you in making an informed decision – we will advise you of what costs we think are imperative.
Grants and Exemptions
However, if you are a first home buyer, you may be exempt from stamp duty if your house is valued for less than $650,000. If your home is valued between $650,000 and $800,000 you can apply for a concessional rate. This amount will be based on the value of your home. To find out more visit Revenue NSW or click here.
The First Home Owner Grant (New Homes Scheme) is also available to first home buyers purchasing or building a new home up to the value of $750,000. The grant provides a rebate of $10,000 for eligible purchasers. If you are purchasing a new home that is already built, the grant can be processed and provided to your lender so the monies are available for settlement and if you are purchasing off-the-plan, then the grant will be made available to you once the home is built. To find out more visit Revenue NSW or click here
Here at Cater O’Neill Legal, we understand a property transaction can be a highly stressful and consuming process and we aim to take as much pressure off you during this time. Our aim of the transaction is to ensure that you are as comfortable and informed in your decision as you can be as we understand that this is unfamiliar territory. Please contact our office today regarding any property law questions knowing we have you covered.