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first time buyers in oz!


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G'day poms, Just wanted to know if there is any help for first time buyers in perth when buying brand new house and land packages? someone told me that if your buying new and your first time buyers,the goverment will give you a grant towards it. Also how long would we need to be in oz as PR before we could apply for a mortgage and what percentage deposit is required,as i heard you need at least 15% in oz to get a mortgage.

 

Its a little way off till we get to that point,but judging by the price of rentals we want to get on the housing ladder as soon as poss:wink:

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Guest The Ropey HOFF

I can't really help mate, i was told they do the first buyers package, but i'm not sure how much it is, or how much deposit you need. Personally i think it is best to rent first for at least 6 months and if you like the area, then look at buying. Check out the great housing site realestate.com.au, for new builds and rentals. Best of luck.

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I can't really help mate, i was told they do the first buyers package, but i'm not sure how much it is, or how much deposit you need. Personally i think it is best to rent first for at least 6 months and if you like the area, then look at buying. Check out the great housing site realestate.com.au, for new builds and rentals. Best of luck.

 

Cheers hoff, yeah i think we will be renting for at least the first 18 months,just wondered if there was a certain amount of time you have to be in country and in full time employment before you can secure a mortgage.

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Try this website: http://www.firsthome.gov.au/ (need to know which state you're moving to). Good luck! We actually think the rentals are OK priced, but I think that says more about the price of rentals in London at the moment than anything else. :)

 

Hi Jennlx, thanks for your input ...... really helpful. I guess its like anywhere, the closer you are to the city or the beach the higher the rental. :biggrin:

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Guest GeorgeD

You don't need to be in the country for any specific length of time with PR, but the deal you get will vary from lender to lender. My wife had PR, but I am still only a Temp Resident and we got preapproval from Commonwealth for a huuuuge mortgage even though I had been in the country for 3 months and only been working for 6 weeks. But it was OK because my wife had been in the country for a couple of years. We also only put down a 3% deposit. You will get stung for LMI Insurance which costs a fair bit ($5,000+) to basically protect the lender in the event of you defaulting. They can still reposses your home and kick you oout and all that, but the LMI means they don't lose any money so they are happy to lend more if you pay this fee. This can be a surprise cost if you haven't factored it in. You normally need a 20% deposit to avoid paying LMI.

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We got in touch with a broker and were told we needed to be out of any probationary periods at work, so if you start a job and aren't under any kind of probationary period you can get approved straight away. There's also a difference between savings and 'genuine savings'. Banks want to see you are capable of saving a monthly amount rather than just landing in the country with a big pot of cash.

 

We were told minimum of 5% deposit and $4k for costs.

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Guest GeorgeD

Brokers are very popular. we used one. My temp visa restricted us somewhat, but there were still options.

 

In July 2012 we bought a house for $515,000 in QLD. Rules and fees can change year on year and vary from state to state. Here were our fees based on a 3% deposit:

 

Mortgage Insurance = $12,000 (this is for the bank's benefit, not ours)

 

Transfer Stamp Duty $9,275

 

We didn't get any first time buyer grants. I wasn't eligible for the 1st time buyer grant at the time as I was only a temporary resident, only PRs and citizens get it. And my wife was ineligible as she had previously owend a house in Oz. She had bought that as a Temp resident so didn't get the grant then either!

 

We didn't get the 1st home Stamp Duty Concession either. we got conflicting advice about this one, but after sepaking to 2 lawyers and the QLD State revenue Office we discovered we/I was ineligible. My wife had already owend a house in Oz, but I hadn't (just the UK). The wordign of the question (Q5 on Form OSR D2.1) asks "Before acquiring this property, have you ever held an interest in residential land in Queensland or elsewhere?" After advice, elsewhere means anyhere in the world, not elsewhere in Australia.

 

Legal Fees: $1,250

Building and Pest Inspection was around $600 from memory

Mortgage related Fees - about $600 (Wealth package fee - lower rate of interest, documentation fee, etc)

 

And that was about it...add in pest spraying, carpet cleaning (just for the sake of it) and removalists it probably added up to another $1,000 to $1500.

 

Basically all the fees/taxes cost $25,000ish. This doesn't include the actual depost of $15,450...so to buy a $515K house with a 3% deposit we had to pay around $40,000 up front.

 

As a side note, the fee to the Estate Agent for selling the house was $13,162.50, which the sellers paid.

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Guest The Ropey HOFF

I read on here somewhere that if your property your buying is less than $500k you don't have to pay stamp duty which is a massive saving.

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Guest GeorgeD
I read on here somewhere that if your property your buying is less than $500k you don't have to pay stamp duty which is a massive saving.

 

Stamp duty varies from state to state, and they change the rules every year!

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Maybe give a couple of house building companies a ring and ask what incentives there are and if they can arrange finance etc - it's on my list to do !

If you are a PR holder you get $7000 first time buyers grant.

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Just seen this, sounds good depending on the interest rates:

 

http://www.wahousingcentre.com.au/about-us/news/251-zero-deposit-on-your-new-home

 

Obviously not here , they' will be using the first time buyers as deposit , mr Buckingham is one tight arse , they are Tryin owt to get builds , remember you have to live ie rent if you can get one and pay for the build while you are renting

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Obviously not here , they' will be using the first time buyers as deposit , mr Buckingham is one tight arse , they are Tryin owt to get builds , remember you have to live ie rent if you can get one and pay for the build while you are renting

 

Well I messed up there then thinking it was like the UK where you can buy a new house (small deposit) off plan then actually start paying for it when it's finished and you move in.

If I wanted to pay as it's built then I'd do it myself..............except self build finance is a nightmare to get, not like the UK !!

 

Oh well, big rethink required !

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