Are you uncertain yet eager to finally fulfill your Australian dream? Buying a home can be exhausting, but it is all worth the effort once you have the happy tears of finally moving into your first home.
But you don’t have to go through it all in vain. FHBA’s experts provide a step-by-step guide to facilitate hectic house-hunting, especially for Queensland’s first home buyers. So, leave all your worries behind and get started with our comprehensive guide:
Step 1: Saving For Your Deposit
Buying a house is not a one-day deal! You don’t randomly decide to buy a home and take ownership of your dream house the next day or week.
Planning to buy a new home can take years of planning, especially in these current market conditions. The most important thing to do is save up for the overall budget. To efficiently plan a budget, you must know all the costs when purchasing a new property.
Here are some of the upfront costs that affect the overall budget when buying a home in Queensland:
Stamp Duty
Stamp or transfer duty is a tax levied by the State government on property purchases. The buyer typically pays this tax, and the duty rates can vary depending on the total property value. In Queensland, first home buyers are eligible for exemptions and concessions in Stamp Duty on both land and dwelling purchases.
Home Deposit
Commonly known as a down payment or mortgage deposit, the home deposit is the payment of a proportion of the total purchase price of a property.
Typically, most home sellers demand a 20% deposit, but the total price can vary from one vendor to another. However, with the leverage of the first home deposit scheme, property buyers can opt for home deposits as low as 5% of the total property price.
In addition to these two, some extra costs that may arise include fees for:
- Building & Pest Inspections
- Insurance (like LMIs) – commonly capitalised onto the loan
- Registration fees
- Conveyance/Legal Costs
Step 2: Market Research
Saving up all your hard-earned money, but what if you overpay for your home?
This is what makes the real estate market so important in Queensland. Overpaying for you isn’t the only concern, but missed or inefficient market research can lead to other potential pitfalls, like settling for the wrong location or poor capital growth.
To proceed with market research in real estate, here are some of the key points not to miss:
- Queensland’s current housing market (including demand, supply, consumption rate, consumer choice, etc.).
- Neighborhood assessment (including facilities and safety of the area.)
- Do comparable research with different properties.
- For shortlisted properties, research lot size, construction time, services, and amenities.
- Determine eligibility for Government incentives such as the first-time home buyers grants in Qld.
Step 3: Choose Your Dream Home
Once you have shortlisted all your options for your potential house, it is time to inspect and evaluate each property. The inspection must be thorough, ensuring you don’t miss a single home detail.
Carefully assess the structural integrity of walls, floors, roofs, etc. In addition, if the property includes any fixtures, make sure you check their working conditions. It is also important to check water pressure in pipelines, fences, dampness, or any alarming signs of damage. A building and pest inspection is perfect in this instance. Before finalizing your home, clarify all the inclusions and exclusions from the property owner.
Step 4: Hiring a Broker or Agent
We applaud your hard work if you have researched and inspected the property. However, hiring a buyers agent can make house hunting more effortless and accessible. Real-estate brokers can help you in numerous ways, including:
- Managing the legalities and paperwork.
- Negotiations.
- Finding your dream home becomes effortless.
- Accessibility to more sellers.
- Helping you claim schemes like first-time home buyers grants in Qld.
- Regulatory compliance in property purchase.
- Most importantly, you will save your time.
Step 5: Finance Efficiently
At this point, you already know what property you want to buy. However, the most challenging hurdle is financing the purchase, even if you have savings for investing in a property. But with efficient financial planning, you can easily manage your expenses.
To begin with, be smart with loans. Different home loans exist that homebuyers can avail of with varying interest rates, depending on various factors like your credit score and first home loan serviceability etc. For Queensland’s first home buyers, some of the loan options include:
- No deposit loans for first-home buyers
- Parent-assist home loan
- Low-deposit home loans
In addition to different types of loans available to make financing more accessible, schemes like first-home buyer grants are also available. If you are a first-home buyer with little or no down payment, you can get an LMI waiver.
Read more about the LMI waiver scheme from FHBA’s experts.
Step 7: Conveyancing
Conveyancing refers to the legal transfer of the property ownership to the buyer. You must find an authorized solicitor who handles the legalities and paperwork in transferring ownership.
To find a trusted solicitor to perform the legal work for conveyancing, contact our FHBA Coaches.
Conclusion
With the right guidance and resources, you can navigate the process smoothly and fully take advantage of the grants and incentives (like the First-Time Home Buyers Grant in QLD) available to first-time home buyers in QLD.
By following the steps outlined in this guide—from saving for your deposit to securing the right financing and handling legalities—you’ll be well-equipped to make informed decisions and move closer to owning your dream home.
Let FHBA’s experts assist you every step of the way, ensuring your journey to homeownership in Queensland is as stress-free and rewarding as possible.
