Unbelievable! The QLD Govt has actually made a bloody great decision - they have decided to continue the $20k First-Home Owner Grant until June 30th, 2018. You beauty!
But what does it all mean for us? This means you can use $20,000 from the government to go towards your deposit on your first home. This is HUGE. For some people this means you can purchase your first home with only an extra $5,000 savings and the repayments on the loan will be similar to the rent you pay. Therefore, you can stop renting and start owning.
Getting your foot in the door is the hardest part when it comes to the property market and if someone is going to give you $20,000 to do it, then you take it. Not only that, the government will also give you a stamp duty concession for purchases up to $750k. Meaning you will pay little or NO stamp duty on the home. This can potentially save you another $10,000. What more could you want?
Ok how does it all work? Well, to purchase a home there are a couple of requirements you need, but it’s much easier than you think.
First, you will need to have a secure income. The banks need to know that you can afford to pay the home loan off, even if it's less than the rent you currently pay. They will assess what you earn (your income) against what your liabilities are (dependants, debts & living expenses). If your income can comfortably cover your liabilities plus pay the loan repayments, then your serviceability will pass. Generally speaking, for loans over $350k, a single applicant will need a secure income over $55k, a couple will need a combined income over $80k.
Second, you will need a 5% deposit to cover your LVR (Loan to Valuation Ratio). Now if you qualify for the First Home Owner Grant you will automatically start off with a $20k deposit. Usually you will need at least another $5k on top of this to get moving. A bank will normally require genuine savings, meaning you have genuinely saved the $5k in your account over 3 months. However, if you don’t have genuine savings, they will accept 6 months worth of rental repayments to prove you can pay the loan. Now you’re getting incentives from the bank – how good.
Third, 6 months rental history. Or a letter from your real estate agent manager to say you have been renting for at least 6 months and how much rent you have paid. Too easy.
The next thing you will need is to qualify for the QLD First-Home Owner Grant.
Here are the basics:
Neither applicant can have previously have owned property in Australia.
Applicants must be over 18 years of age.
At least one applicant must be a permanent resident or Australian citizen.
The property you purchase must be brand new.
The purchase price must be below $750,000;
You will need to live in it for 6 of the first 12 months.
It’s that easy. There’s only some other small things to consider like; having a good credit file, employment history and the fact that dependents significantly increase your living expenses. We suggest you talk to our experts to get more info.
Just remember - Interest rates are at a 60 year all time low. APRA is tightening regulations on investor and international buyers making it easier than ever for home buyers to get into the market. Don’t sit on your hands and watch the opportunity go by. Talk to an expert and find out how to get into the market and how it could be possible to potentially build a property portfolio from scratch – the smart way.
We do obligation free pre-assessments on a daily basis, where we see if you qualify and then give you an idea what your budget would be. It’s free and it is only an assessment, meaning no credit checks and no applications.
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