Tips for first-home buyers

Looking to buy your first home? Feeling confused?

At AUV, we are making your purchasing experience a fun, exciting and hustle-free process, so here are the things to do when looking to buy your first home!

Deposit

Firstly, let's talk about your deposit.

When buying a property, you are required to give a certain percentage of the purchase price as the deposit. Providing a deposit means you own a portion of the property, and having a larger deposit may mean you don't need to borrow as much from the lender and paying less interest of your home loan.

First-home buyer duty exemption, concession or reduction

In addition to the deposit, you will need to save on additional fees such as solicitors/conveyancer fees, property transaction costs,rates and stamp duty. But first home buyers in Victoria may be eligible for the first home buyer duty exemption or concession.

Are you eligible to save stamp duty?

-       You must be 18 or over at the date of the contract.

-       At least one of the first buyers must be an Australian citizen or permanent resident.

-       You must be an individual, not a company or trust.

-       You and your spouse/partner must never have owned or co-owned residential property in Australia.

-       You and your spouse/partner must never have received a first home purchase grant in Australia.

-       You or one of the first time buyers must move into a new home as your principal place of residence within 12 months after buying the property and live there for a continuous period of at least 12 months.

-       Your contract must be dated on or after July 1, 2017.

Financing

Take the time to explore your options. Some banks require a 20% deposit; others are more flexible. Consider using a mortgage broker as they will guide you and recommend suitable loan options. And they don't charge you as it's provided by the lender.

It's always a good idea to get approval ahead. They give"pre-approval," which means you can make a monetary commitment with confidence. However, the lender will finalize the approval once they have valued the property you intend to buy. If your lender ultimately turns you down, don't sign any documents waiving your right to walk away from the deal.

Property hunting

With your finances all lined up, you will need to think about the dynamics of buying a home. If you find your dream place,you better trust that others will like it too. So be prepared to move quickly to beat the competition.

Property hunting is super fun but exhausting. In a hot market, it can get tight because of competition from buyers. Stay focused. You might miss a few properties, but there's always more to come!

Be confident

Confidence is the key! If the property is in your price range, you have the right to make any offer, but we recommend that your offer be realistic if you want the property. Don't lower your price to see if the vendor will accept it, they may not (especially in a hot market).

Buying a property for the first time can be quite intimidating. You have to deal with sellers and agents, rival buyers, banks and lawyers.

Don't feel like you have to go through this experience blindfolded, we know how intimidating buying your first home can be, so we're here to help you every step of the way.

If you have any real estate inquiries please do not hesitate to seek help from AUV team.

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