Most people dream of owning a house. However, it is usually not that easy to do, especially for first-time home buyers. The cost of buying a home can be financially draining. Some people think buying a home is something they cannot afford. What many first-time home buyers do not know is that there are big opportunities available to them to help finance their purchase. If you're a first-time home buyer, below are some of the opportunities you may want to consider.
First Home Owners Grant
Eligible first-home buyers in Australia can avail themselves of the First Home Owner Grant (FHOG), which is a national scheme funded and administered by different states and territories. Introduced on July 1, 2000, it aims to provide first-time homeowners a one-off grant to help with their purchase. This grant can be used for buying a new home or for building one. It may also be used to buy a home that has been substantially renovated or one that is yet to be built (off-the-plan home).
To avail yourself of this grant, you must fully satisfy the following requirements:
You are 18 years old or above.
You must be a citizen or permanent resident of Australia (or you are applying with someone who is).
You have never previously owned a property in Australia that you lived in.
You are building a brand-new home or buying one.
Within one year of the completed transaction, you are required to move into the new home as your principal place of residence.
Upon moving into your new home, you are required to live there continuously for six months.
The amount of the grant varies depending on the state or territory where you will apply. There is also a maximum property value allowed but the amount is likewise dependent on the state or territory.
First Home Concession
If you're buying a home for the first time and you intend to occupy it as your primary residence, then you may qualify for a first home concession provided you meet certain requirements. This reduces the amount of transfer duty that you have to pay. Sometimes you won't need to pay anything at all. This concession can only be applied once, however. These benefits also vary within each state and may change over time.
First Home Vacant Land Concession
If you're planning to buy a vacant lot on which to build your first home, then you can claim a one-time first home vacant land concession, which will also lessen the transfer duty you need to pay. The criteria for eligibility as well as the benefits also vary per state or territory.
First Home Buyer Loans
Aside from the government benefits, first-time home buyers can also avail themselves of financial assistance from banks or lending institutions that offer first home buyer loans. Some things you'll need to consider include the interest rates, required deposits, payment schedules, and extra features, among others. How much you can borrow depends on many factors including your income, your partner's income, the number of dependents, as well as any debts that you may have. The choices may be confusing to you as a first-time home buyer, though. If you need some expert assistance, you can ask for help from mortgage brokers who are usually connected to several lenders and can suggest options for you.
Buying your first home need not be a daunting task. Taking advantage of these benefits means you will save money that you can use for other important home expenses instead such as for interior design or for moving house.