Buying a house is a costly transaction, which involves price, fees and taxes among other payments. Now, not everyone can pay these fees at once, especially first time buyers who don’t have sufficient savings. It’s a good thing, however, that you have few options to consider as a first time home buyer. This includes low deposit house and land packages, government-funded concessions and family support among other financial help.
And here are a few types of financial help that you can take advantage if you’re buying your first home:
First Home Owner’s Grant
The First Home Owner’s Grant (FHOG) is the federal government’s concession for first time home buyers. In Queensland, for example, first time home buyers can receive $15,000 concession for deposit. However, you should remember a few factors to receive support.
The FHOG generally provides concession for new houses or for building a property. However, in some states, it can only cover a new house purchase. If you purchase a completely built house, you can receive the FHOG upon settlement. On the other hand, you should make the first progress, such as laying down the slabs, before you can receive it for building a new home.
Also, remember that the FHOG only covers a part of your deposit. You still need to pay for the remaining cost and legal fees. Nevertheless, you can minimize this problem by finding low deposit home and land packages for lesser remaining expenses.
First Home Super Saver Scheme
The First Home Super Saver (FHSS) Scheme allows you to save cash under your superannuation funds to purchase your first home. This can let you have a maximum of $15,000 of your voluntary contribution, taken from any one financial year of your eligible contribution. However, you can receive a sum of $30,000 when you take it from multiple financial years of your contribution. Most of the funds you will receive will go to the initial deposit for the property.
This can help you pay low deposit house and land packages easily; but be sure that you’re eligible to receive FHSS funds before applying. You should be at least 18 years of age and you should have contributed to the superannuation funds. Moreover, you should live in the property you want to buy, or intend to live for 6 months within the first 12 months after its ready.
Home loan guarantors
Having a guarantor can help in pulling down the cost of your deposit. Guarantors are immediate family members, such as your spouse, siblings or parents, who can guarantee to pay the loan if you fail to do so. This can help you get favourable loan deals, such as receiving low deposit home loans for first home buyers among other offers.
Favourable land and home packages
FHOG, FHSS and guarantors can lift a big financial burden off your shoulder. But you can have more benefits when you look for favourable land and home package deals. To begin with, this can help you have lesser tax rates since you only have to pay for the land and house in one. You don’t have to pay for separate deposit and mortgage as well.
In addition, you can find low or no deposit home and land packages nowadays. Yes, these often come with longer years to pay and higher accumulated interest. But that can give you enough time to save for it, instead of paying a bigger amount immediately.
These are the important notes you should remember to buy a house property without spending too much. The government has sufficient help for you and you can ask help from your close family members. Of course, don’t miss to find the best package and loan deals as well.
For the best and most favourable low deposit house and land packages, check out BuildToday.com.au. Inquire about quality properties that you can get without paying large upfront cost for deposit.