Buying a home is a major financial decision. If you have never purchased a home before, then you are a first home buyer, and this gives you options that other purchases do not have access to.
If you are considering buying your first property in Melbourne, then Select Legal applaud you as Melbourne is Australia’s most livable city and also is one of the fastest-growing cities in Australia over the last decade.
Melbourne is known as Australia’s cultural hub. In addition to being a great place to live, Melbourne offers a wide range of attractions, from sport, to art, to parks and gardens and to beautiful beaches.
To become a First Home Buyer in Melbourne, there are many considerations to take into account and Select Legal can assist in your journey to achieve your goal. Please try to keep in mind the following aspects before you start:
Prior to considering properties and areas, be sure to evaluate your budget. The maximum you are willing to pay each month is not necessarily the amount you can borrow.
Home loan payments, as well as additional costs related to home ownership, have a greater impact on a monthly budget than rental payments do.
When planning your budget, consider your home loan repayments and live that budget prior to your property search, to ensure you are capable of living within that budget. Adopting this approach will help you manage your mortgage efficiently and maintain the lifestyle you desire.
Also when buying property, remember to consider the stamp duty costs that are involved in addition to any initial expenses, as these can add up quickly
Once you have a clear understanding of your budgetary constraints you can view properties with a clear goal in mind.
The first thing you need to do when looking for a place to live is to know what you want. Do you want an apartment? A house? Or perhaps you would like something that has both of these features. If you do not have a clear idea of what you are looking for, finding a property can be difficult and cause frustration.
Don’t operate on someone else’s timeline and don’t make commitments that will make things challenging if your property hunt takes a few months longer than you anticipated. If you’re renting, stay on a month-to-month agreement so that you are able to move without penalty.
If you are thinking about moving into your own home, you should start by considering the type of property you want. You may think that you want a detached house with a garden or maybe you prefer a flat in a block of flats. There are many different types of properties available so it’s important to consider all of them before making a decision.
When searching for a place to stay, it is important to consider the area. The neighbourhood could potentially be advantageous or disadvantageous. An area with many children and adolescents may lead to certain issues and difficulties. Conversely, remaining in a peaceful suburb with low crime may turn out great after living there for some time.
When choosing an apartment, consider your daily commute. If you will be teleworkinhg, you may be able to find a place that is close to your office. Otherwise, you may want to look for apartments that are farther from your workplace.
Take your time to know as much as you can about the suburbs you’ve identified as having potential.
When considering real estate in your local area, consult with a real estate agent and a mortgage broker to gain insight into property valuations, list prices, and other important information.
Considering the large financial commitment of buying a home, it is advisable to enlist the expertise of a licensed and thorough home inspector in order to detect any potential problems that may require expensive repairs.
A mortgage broker can help you organize your finances and a financial adviser can provide insight on the realities of home ownership. To avoid any conflicts, have a separate lawyer when buying a home.
Select Legal can advise you of all of your legal obligations and costings.
As a first home buyer, a mortgage and the new financial landscape can seem daunting. You will need to research loans and mortgages.
A mortgage option enables you to spread the cost of the property over a period of time instead of paying outright. This means that you won’t need to make an initial large payment or be charged interest for an early stage loan. The full amount will be payable when you decide to sell the house.
You can select between two types of mortgage offerings – a traditional, steady-rate option, or a variable-rate option presenting more flexibility. Additionally, it is possible to select a hybrid option that combines features of the prior two.
As a first home buyer it is important to conserve as much money as you can, and the real estate arena is full of financial burdens that can creep up on you. So it is important to ensure that you negotiate well.
Negotiation is key for buyers to ensure they get the most of out of their purchase. It may not seem significant for a six or seven figure deal, but even small amounts such $10,000 or $20,000 can add up in the end.
Real estate agents are expert salespeople and they work in the vendor’s interests. They may try to rush you into making an offer quickly. If you feel pressured, step away; taking the time to think it through objectively can prevent regretting a decision later.
Have confidence, and be forthright in your negotiations. Remember the vendor also needs the sale as much as the purchaser needs the property.
The first home buyer duty exemption or concession may be available if:
The exemption or concession is only available to you once. If you or your partner has received the benefit of this exemption or concession previously, you cannot receive it again.
Unlike the First Home Owner Grant, it doesn’t matter whether you buy a new or established home. The exemption or concession is also available for vacant land.
The dutiable value is usually the contract price. If you buy your home off-the-plan, the dutiable value is determined after applying any off-the-plan concession. This means it will probably be less than the contract price.
The First Home Owners Grant is different to the stamp duty concession in that the government actually gives you money – $10,000 worth if you buy or build a new property in Melbourne or Victoria. With the introduction of the stamp duty concession, the First Home Owners Grant is only available to anyone who is building or buying a brand new property. If you are buying an established property unfortunately there is no First Home Owner Grant.
To be eligible to receive the $10,000 the First Home Owners Grant in 2023, you need to be buying a new property valued up to $750,000 that has never been lived in OR be building a new property valued up to $750,000.
We are one of the leading conveyancing solicitors in Melbourne. Our experienced lawyers will guide you through your first property purchase in Victoria.
Our staff have a wealth of experience and knowledge, so we can provide clear advice on all aspects of your transaction.
The advantage of engaging Select Legal is that all your conveyancing needs are met, whether they be standard or extremely complex, where our solicitors can attend to additional legal work required which includes drafting special conditions, drafting agreements such as a licence agreement or lease, letters resolving disputes etc depending on the requirements of each matter.
Our knowledge of the process and attentive service (as shown in our Google Review history) is what sets us apart from others in this field. Depending on the needs you have, Select Legal is ideally qualified to handle your transaction and ensure your purchase or sale goes through all the required legal checkmarks.
Contact Select Legal today for all your conveyancing needs or request a quote which will only a few minutes.
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