Taking a step up into the property ladder in the Melbourne real estate market can be an overwhelming experience. As always, it’s whom you know that can that can help you avoid common mistakes of real estate. Some people that can help:
- Mortgage broker: they do the legwork on researching the best value loans on the market from the hundreds available, then support you though the application and settlement process.
- Buyers Agents: Real estate agents that represent the buyer, there experience in real estate will save you time, money and reduce the risk of making a poor choice.
- Solicitors/Conveyance’s: represent you though the legal process of settling a property and insuring contract clauses and deposits are satisfied.
Importantly, being a first homebuyer you may be able to apply for government grants like FHOG and stamp duty grants.
First Home Owners Grant
The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.
Under the scheme, a one-off grant is payable to first homeowners that satisfy all the eligibility criteria.
If you are buying or building a new home valued up to $750K, you may be eligible for the Frist Home Owner Grant of up to $10,000. First home buyers can also claim a 30% reduction in stamp duty for purchases up to $600,000, a reduction set to increase by 10% in July 2014 and 10% again in July 2015.
A few rules that apply the FHOG:
- Can apply to the purchase of a house, townhouse, apartment, unit or similar.
- Applicants are Australian citizens or permanent residents.
- You must live in the home as your permanent place of residence.
- New Zealanders holding a special category visa or anyone holding a permanent visa are considered to be a permanent resident of Australia can apply.
- Established homes are no longer eligible to receive the FHOG.