Since you’re here, I can safely assume that you’re a first time homebuyer, who’s scouring the internet looking for useful tips that you can hopefully use to make the right decision when you finally decide to buy the property you want. That or you’re a second-time homeowner, who succeeded in your first try and is now seeking to gain insight on the latest in the home-buying industry.
You came to the right place. In this article, I’ll show you the ropes of first time home buying in Perth, Western Australia as well as few tips to improve your chances of landing the home you’ve always dreamed of.
How much do I need to borrow?
Knowing how much you can afford to borrow is very important, especially if you’re a first time homeowner. You may want a home loan, but you still need a life. Start by creating a list of your current and future needs and expenditures.
You’re in luck because first home buyers in Perth can get a grant of up to $10,000, bringing you closer to your home ownership dream. Still, I recommend that you hire a real estate broker who will assist you to get the right loan available and provide you with indicative figures you need to make a smart decision.
How about deposits?
Typically, you are required to deposit at least 20 percent of the purchase price of a property. Any less than this amount and you might need lenders mortgage insurance. Once again, your finance broker will be able to provide you with advice and indicative figures.
Stamp duty?
Stamp duty is the state government tax on a property purchase. As a first-time homebuyer, you are exempt from paying stamp duty if you’re buying a home up to up to $530,000, percentage will apply thereafter.
For vacant lands, you are exempted for up to $400,000, if you have signed a building contract prior to ownership, if the building contract is not signed, then the typical rate will be payable at settlement. However, if you build your house within five years’ time, stamp duty at settlement will be reimbursed to you from State Revenue. Keep this in mind.
What about Conveyance?
What is conveyancing? Conveyancing is referred to as the legal process of transferring ownership of a property from one entity to another. The legal paper prepared by the appointed conveyancer is called The Transfer of Land and it requires original signatures from both parties.
Lenders Mortgage Insurance
If you borrow more than 80% of the property value, then you will need a lenders mortgage insurance. This process covers the lender, if you (unfortunately) fail to repay your loan. It’s basically an insurance for the lender and not the borrower.
Other Considerations
You also need to reserve money for moving costs. This includes cleaners, removalists, utility connections, and extra furniture. Consider having a garage sale to reduce unnecessary items and reduce moving costs – that’s extra money for you as well!
That’s it! Owning a home is a perilous process, but one that will undoubtedly bring you joy and fulfilment once achieved. And remember; with first home buyers grant in Perth, you’ll be owning that home in no time!
Best of luck!
