According to the latest realestate.com.au’s Consumer Intentions Study, a majority of first-time homebuyers are confused about the home buying process — with 49% of the respondents being relatively confused and 15% being extremely confused. What’s causing the confusion among these homebuyers?
- The Deposit or Down Payment Requirements – Take note that you’re not required to deposit 10%, but a deposit of below 20% of the home’s purchase price will bring with it LMI or lenders mortgage insurance.
- The Lenders Mortgage Insurance – This is for the protection of lenders in case you default on your loan and is usually added to your mortgage fees when your deposit is below 20% of the property’s purchase price.
- Applying for a Mortgage – Experts recommend speaking with a mortgage broker because they know what to prioritise and look for, which will save you stress, money and time.
- The First Home Owner Grant – Some states cut off homebuyers who are purchasing a home that’s well over the state’s limit, while others restrict grants to individuals who are buying or building a new home.
- The Legal Requirements – You will need a solicitor or conveyancer to aid you in settling all the legal requirements of the purchasing process. They will facilitate the entire conveyancing process.
- Home Insurance – A majority of lenders will require you to have home insurance as a safety net for unforeseen disasters or unfortunate events. Keep in mind, however, that cheapest doesn’t necessarily mean it’s best.
- Stamp Duty – This is the tax you pay to your state government for the property sale or land transfer. The amount varies from one state to another and could be calculated either as a percentage of the sale price or set rate. Conveyancing lawyers in Townsville suggests researching your state laws.
- Capital Gains Tax – You will only have to pay this tax if you’re going to profit from the purchase of a property. This means that if you’re not going to rent out the property and live in it, this won’t be a concern.
Buying your first home is probably the most vital and biggest investment you will have to make in your life so you have to ensure that you do it right. Knowing about the above-mentioned things and understanding how they affect the process will get you one step closer to realising your dream.