When it comes to buying your first home, it is rarely a simple process, especially in New South Wales where home values tend to be higher than anywhere else in the country. You have a number of options in finding and buying your first property in NSW
First Home Buyer
Private Treaty
Private Treaty Sale refers to a standard residential real estate transaction. The vendor, or home owner, sets a price they wish to sell their property for and the real estate agent negotiates with potential buyers on their behalf to achieve the price they set.
Buying by Tender
The process of purchasing NSW real estate by tender involves submitting a single offer, usually accompanied by a deposit of 5 or 10 percent, and the seller will either accept or reject the offer.
Buying at Auction
Auctions are public sales conducted by state-licensed auctioneers and governed by strict rules. There is a reserve price, which essentially is the minimum amount the property is likely to sell for. If the bid exceeds the reserve price, you must sign the contract immediately.
Buying property off the plan
When you buy property off the plan, you are paying for something that has not been completely constructed yet. The end result can differ slightly from what you expected. However, it is more affordable than many other properties.
Buying a house is an exciting moment and can be overwhelming at the same time. Considering it’s probably your biggest investment, there are a lot of decisions involved .
This is where Freshwater Financial Services come in. We can help you better understand the loan process and your home loan options; ranging from the types of home loans you may qualify for, how much you may be able to borrow, and repayment amounts.
First time buyers can also get in touch with us to find suitable properties in high growth areas of northwest and southwest Sydney, which offer a variety of housing options and offer fantastic value for money.
We have a highly qualified team of property advisers who can help you find the right mortgage that meets your lifestyle requirements, as well as provide a comprehensive service from the very beginning to the very end. We can help first time home buyers in Sydney in claiming:
First Home Buyers Assistance Scheme
First Home Owners Grant Scheme
First Home Buyer Home Loan
First Home Loan Deposit Scheme
In NSW, first home buyers have two assistance schemes to help buyers get into the property market: the First Home Owner Grant (New Homes) Scheme and the First Home Buyers Assistance Scheme. The first scheme is a cash grant, while the second is a tax concession or discount. Some first home buyers may qualify for both schemes.
First Home Owner Grant (New Homes) Scheme in NSW
First Home Owner Grant (New Homes) Scheme is a $10,000 grant intended to first home buyers who are constructing or buying a new house. You are eligible for the scheme if you are:
- Purchasing a newly constructed or well renovated home valued under $600,000.
- When buying land and building, the combined value of the both has to be less than $750,000.
- This grant provided under this programme is available for eligible property transactions that take place after 1 January 2016.
If you are buying an existing home, you are not eligible for the grant.
First Home Buyers Assistance Scheme
First Home Buyers Assistance Scheme provides exemptions or concessions on transfer duty for first-time home buyers in NSW. In the period 1 August, 2020 through 31 July, 2021, new homes valuing than $800,000 qualify for a complete exemption. Whereas there is a reduced transfer duty on properties worth between $800,000 and $1,000,000.
In contrast to FHOG, you can still buy a home that is owned and be eligible for a tax exemption. Existing homes must have a value of less than $650,000. The cost of a plot of land can be less than $400,000.
The table below outlines the duty concessions available:
Purchase Price | First Home – New Home Duty |
$650,000 | $0 |
$680,000 | $6,290 |
$700,000 | $10,490 |
$720,000 | $14,690 |
$750,000 | $20,990 |
$770,000 | $25,190 |
$800,000 | No discount |
Source: Revenue NSW
Vacant land
Additionally, the First Home Buyers’ Scheme offers duty exemptions for vacant land worth up to $350,000 and concessions on vacant land with a value between $350,000 and $450,000.
HomeBuilder
HomeBuilder is a federal grant that entitles buyers of new homes in NSW a grant of $25,000 for the construction of a new home or renovating an existing home. First time homebuyers may be eligible for HomeBuilder grants as well as other grants.
There are various types of home loans available based on the borrower type and the interest type. The borrower types include first home buyers, construction loans, owner occupiers, property investment, refinancing, or interest-only. The rates include variable, fixed, and split rates.
Since, a home loan is secured against the value of your property, so if your ability to pay the loan is compromised, the lender may be forced to ask you to sell your property to pay off the loan.
Compare home loan rates in Sydney
The interest rate of a home loan depends greatly on the loan provider. Because home loans are long-term debts, even minor changes in interest rates can make a big difference to how much you will pay at the end of the loan.
Thus, stay up-to-date about the interest rates and fees associated with your personal loan and how much the average home loan costs in the long run.
You can use our Mortgage Calculator to figure out how much your interest rate will cost you, both in monthly repayments and over the loan’s lifetime.
The First Home Loan Deposit Scheme was created by the government in order to assist Australians buy their first homes.
The scheme is a Government-backed guarantee that protects low and middle income borrowers with deposits as little as 5% of the property value, and saves them money on expensive Lender’s Mortgage Insurance premiums.
A variety of residential properties are available to first-time buyers under the Home Load Deposit Scheme, including an existing house, townhouse or apartment and a house with land package. or land and a separate contract to build a house.
All properties are subject to price caps, only certain lenders are permitted to provide loans under this scheme.
Specialist mortgage advice when you’re buying your first home
If you have tried to buy property in Sydney, you know how difficult it can be. At Freshwater Financial Services we specialise in providing a variety of support services to first home buyers. We also offer our experts services to help you apply for a range of state and federal assistance packages, including grants for first time home builders, grant support for first-time homeowners, and a first home stamp duty waiver.