With so many housing options out there for first home buyers in Perth, it is often hard to make a choice. You can rent an apartment, buy a condo, purchase an existing house or even build your own home. If you are trying to find an ideal home for you and your family, nothing beats building one from the ground up. With a specific budget in mind, you can build a house according to your needs. Not to mention that the government also has some several grants and subsidies you can qualify for as a first time homeowner. That said, here are some tips to help you build the perfect home.
Thinking of building a home here in Perth but haven’t saved enough yet to qualify for a mortgage? The good news is that with Western Australia’s First Home Buyers Grant (FHOG), you can start building your home sooner than you think. Currently capped at $10,000, the FHOG can go a long way towards helping you pay for a home loan deposit, which is generally set at 5% of the total home loan. Note that only one grant is available per contract regardless of how many individuals own the property.
First home buyers are widely perceived to be people in their mid to late 20s. However, that conception may need to be re-evaluated, considering that surveys from 2011 onwards have shown that an increasing number of Australian first home buyers are well over their 30s. More recently, a report by realestaview.com.au uncovered that over 60 percent of first home buyers are now aged between 30 and 49 years old.
Some industry groups and analysts have attributed the trend to more people saving for longer and purchasing later in life when they are in a better financial position. This theory appears to coincide with the reasons given by those surveyed: Financial security via the property ladder was the greatest motivator for most first time buyers.
When it comes to stepping on the property ladder, it’s important to start off on the right foot. First home buyers in Perth may find the latest real estate market reports, industry news, and expert tips frankly confusing. Yet certain pieces of advice have real merit and will genuinely help you secure a home.
Avoid these common slipups so you can step up with confidence on the property ladder very soon.
Losing Sight of Your Goals, Straying from Your Priorities
First, determine your goals and set priorities. Write down everything you want to see in the home you are building, and make it a priority to save for a deposit. Along the way, you may have to cut down on your leisure travel, luxuries, and other non-essential spending so you can reach your goals on time (or even earlier than expected).
If you are considering having your new home built in Perth, you’re probably aware of what house and land packages are and how the First Home Buyers Grant (also called the First Home Owners Grant or FHOG) helps make a property more affordable. This government-supported source of funding can give you more financial breathing room, provided you are eligible.
The FHOG was initiated by the Federal Government to help offset the effect of the Goods and Services Tax (GST), which first home buyers in Perth and in other states have to pay when purchasing a previously owned residence or building one from scratch.
Numerous Aussies have taken advantage of the First Home Owners Grant (FHOG) to supplement their budgets when purchasing a home for the first time. The good news is that you can still qualify for up to $10,000 in government assistance when you build a new home as this provision has not been stricken from Western Australia’s state budget for 2015-2016. Moreover, stamp duty concessions and land tax for family homes remain as is.
Plenty of home loans are also being approved within the state, as noted by the Australian Bureau of Statistics. From 53,811 approvals in February, loan approvals in March rose to 54,686; total housing loans financed were valued at $31.62 billion. It is interesting to note that a 1.6 per cent increase in housing loans was tallied for owner occupiers. The figures are in accordance with the Reserve Bank’s move to lower the official cash rate to 2.25 per cent and exceed the expectations of local economists.