For buyers who are first-time buyers, economic considerations often govern whether they can buy the right home. As the first time people involved in the sale of real estate, because of lack of experience or lack of adequate understanding of certain policies, the road to buy a house is always going very hard.

In fact, even if you are buying a home for the first time, you do not need to face tremendous pressure. You can learn to think in advance, make effective use of preferential measures, and understand some loan coups. You can also own a set of real estate that is “very easy”.

In the following, we will sort out the three aspects of how first-time home buyers can effectively control budgets and expenditures, make full use of Australia’s preferential housing purchase policies, and notes on loans.

 

In general, the first question that lay before many first-time homebuyers was deposits. Having the ability to pay the down payment is a necessary preparation for the first home buyer to buy a house. The money may come from family support or from personal savings.

 

 

So in terms of increasing your deposits and controlling your budget, the following tips may help you:

Assess and control costs

Pay attention to the calculation of monthly income and expenses, develop the habit of bookkeeping, and list the unit price of things purchased each day. It can then be adjusted daily based on personal consumption habits, such as reducing the purchase of takeaway coffee or reducing the number of meals a month. Over time, you will unexpectedly find that you can save a lot of money every month.

Budget planning

Budget planning must be strict, but it must also be ensured. Once a good plan is made, it must be strictly implemented and implemented. Among them, a fixed ratio can be drawn from the monthly income for deposits, and a long-term savings habit can be established, preferably a sum of money similar to the future repayment amount.

See the reality

For first time buyers, if the budget is limited, choosing a small residential home is a good start. First, determine the needs of yourself and the family, the ideal city, the type of housing, the average price of the type of housing in the area, and the current economic strength. First calculate how long it will take to achieve the goal of buying a house.

If you find it too long, you can consider choosing a different price, city or type of housing. Remember that in addition to preparing a 20% down payment when preparing a deposit, other upfront costs may be incurred when buying a home.

Of course, for first time home buyers, the various preferential policies provided by the Australian government can also be fully utilized when purchasing homes:

 

First Suite Pension Plan
(First-Home Super Saver Scheme)

According to the federal government’s newly launched plan, people can make additional pension contributions, which can save up to 15,000 Australian dollars each year, and the total amount cannot exceed 30,000 Australian dollars.

This new rule will take effect on July 1, 2018. From July 1, 2018, first-time homebuyers will be able to withdraw their savings from voluntary deposits into their retirement accounts after July 1, 2017, exclusively for home purchases.

First Homeowner Grant and Stamp Duty Discount

First-time home buyers who purchase or build new homes worth up to $750,000 will receive a $10,000 subsidy. If you are in a remote area of Victoria, the amount of subsidy you enjoy will be raised to AUD 20,000.

First home buyers who purchase less than A$600,000 are exempt from stamp duty. For property values between A$600,000 and A$750,000, stamp duty is available.

 

Victoria HomesVic shared equity project

The project was officially launched in February, and first time home buyers can buy houses together with the government. The government will provide first-time buyers with a certain amount of subsidies up to 25% of the initial price of the purchased home.

Parent assist loan

Nowadays, many banks are advancing with parent assist loan measures. As long as parents loan 20% for their children’s first house, the rest of the loans will come from the bank.

Finally, the problem that most first-time homebuyers face is to apply for bank loans.

When applying for a loan, you can pay attention to the following aspects:

Clearing existing debt

It is wise to clear or integrate existing debt before you apply for a home loan so that you will only need to repay the debt at one interest and the bank will accept your loan application more easily.

Comparative study, comprehensive understanding

Learned the loan situation from several lending institutions and clearly understood the interest rates and various expense standards provided by different financial institutions. At the same time, it is necessary to ensure that the loan policies they understand are comprehensive enough, rather than focusing on only one aspect. Because some institutions may have lower interest rates on loans, others have higher costs. After comparing and screening patiently, select the most suitable institution for the loan.

Apply for pre-approvalTo seek pre-approval from the lending institution in advance, you will be able to conditionally approve a certain amount of loan with an effective period of roughly 3 months to 6 months. After obtaining the pre-approval and negotiating the real estate transaction price, the buyer will be more aware of his bottom line.