If you’re thinking that now is the right moment to buy your first property, Thrive Homes is here to help! There’s so much that goes into buying a home, and many buyers find it a bit overwhelming - however it doesn’t have to be. We’ll address a few first home buyer FAQs, to get you started on your purchase journey.
How much money do I need?
You’ll need at least 10-20% of the purchase price for your deposit. You’ll also need to set aside funds for legal fees - it helps to have a professional look over the contracts which are often lengthy, and use specific terminology that you may not be familiar with.
Do I need to pay Transfer Duty (formerly Stamp Duty)?
In NSW, first home buyers are exempt from Transfer Duty provided your home does not exceed a certain purchase price. Other conditions do apply - see more here.
How much can I borrow?
In very simple terms, how much you can borrow depends on how much you can comfortably afford to pay back. Ideally you want your loan repayments to be across both capital and interest - this way as your capital loan amount decreases, the amount of interest payable will also decrease. Remember to allow for increases in interest rates.
Am I eligible for the First Home Owners Grant?
The First Home Owners Grant, which is currently $10,000, is a great start towards your new home. First home buyers who purchase new - that is, a brand new build like a Thrive Home - are eligible for the grant provided they meet the required conditions.
How do I know which suburb to buy in?
There are a few key factors to consider when deciding on your focus suburb or suburbs:
Figure out where you can afford to buy before you start doing other research - you don’t want to get your heart set on a suburb, only to discover your budget won’t allow you to buy there. Heat maps like this one will give you a good overview of median house prices by suburb around NSW, so you can figure out the areas to focus on. Thrive Homes is focused within the outer growth suburbs of Sydney - we have many House & Land packages available, with prices starting from $436,800*.
*price correct at time of posting.
Once you’ve narrowed down your preferred suburbs, get researching! The suburb profiles on realestate.com.au or Domain are good places to start, providing a good overview of growth trends. Also take time to look into what’s on offer in the area. Think value - not just what’s of value to you, but what might be of value to others. Are there great schools nearby? What’s the public transport situation? Are there any upgrades planned or any new attractions coming in the future? This kind of information is readily available online - Google is your friend!
Ask yourself all the important questions! What kind of environment/activities do you enjoy? Where do you work & how do you get there - do you need close access to public transport? Do you plan to start a family, and would like to be in close proximity to schools and playgrounds? It can be difficult to find an area that ticks absolutely all your boxes, so decide what your deal-breakers are and what you might be willing to compromise on.
Of course, this is just a very small selection of questions that will arise for first home buyers. The answers to your questions are out there - always make sure you are as informed as possible, whether that means doing online research, speaking to friends or family who have purchased homes, or of course - asking the experts! Contact Thrive Homes today to learn more about our affordable, spacious and stylish homes, and to ask all your curly questions. We look forward to helping you become a homeowner!