Resources for First Home Buyers
Right now for the First Home Buyers Grant in Queensland if eligible you could be entitled to $15,0000. So, to clear things up, we’ve taken the most frequently asked questions about the grant and listed them below for you:
How much can I borrow up to?
To be eligible for the $15,000, your loan for house & land must not exceed $750,000
Can I use the grant for an existing home?
Only a home that has never been lived in. You are only eligible for the grant if you build a new home, or buy a brand new home that no one has ever lived in (for example, buying a spec home or off the plan)
When do I receive the grant?
Everyone’s draw down on the grant is different and it depends on how your finance is set up. Your bank or broker will be able to go through this with you in more detail.
Do I have to be an Australian Citizen to apply for the grant?
Yes. You, or someone you apply with must be an Australian citizen to be eligible. You can also be a Permanent Resident.
How long do I have to live in the home after its been built?
You must move into your new home within one year of it being built, and you must live there for a minimum of 6 months.
The person I’m applying with has owned a home before; can we still get the grant?
No, neither of you can have owned property to be eligible. If this is the case, you may want to look at applying for a loan on your own.
Can I use the First Home Owner’s Grant as my deposit?
Yes, you can. This is dependant on your financial situation.Our broker will be able to go through this with you in more detail.
***Information extracted from the Office of State Revenue website June 2017
5 ways to get into your new home sooner
Saving for a house deposit can seem like a daunting prospect and achieving your desired amount can seem like it will take forever! If you’re itching to build your first home, but are at a standstill with your savings, here are some of our top tips to help you get there sooner:
1. Make a budget and stick to it!
A lot of us are guilty of not putting a budget in place, regardless of whether we’re saving for something or not. Its hard to tell where your money is going if you don’t account for it.
A budget should take into account the money that you have coming in every month, and the bills and expenses you pay for each month. Once you know how much money you should realistically have left over at the end of each month, you can set yourself a savings goal!
2. Cut unnecessary costs
Now that you’ve got your budget in place, look at where your money is going. Are you spending $80 a week on takeaway lunches when you could cut that back to $20 by packing your lunch every day? Cutting those figures back, you would save $60 a week, $240 a month, which is $2,880 a year! It adds up doesn’t it? Really look at where you’re expenses are overkill and cut back. Things like after pay, zip pay, salon pay etc. look at these first if you cut out of all of your direct debits how much would you save. Even if it’s just for a few months, you’ll be surprised how much you could save! (Yes, this even means cutting back on smashed avo and flat whites).
3. Do the unthinkable
Move back in with your parents. Yes, I know, the thought seems unbearable but if they are willing to let you live with them rent free, or paying a very small rent, that’s a HUGE chunk of money that you can put towards your deposit. Plus think of the advantages: splitting bills further, home cooked meals and possibly even getting your laundry done again!
4. Ask for help
If you absolutely cant bear the thought of moving back in with your parents (or maybe they cant bear the thought of you moving back in), ask if they’d be willing to help. In some scenarios, your parents may be able to go as guarantors on your loan. This means that they can offer their home, or another property they own, as security for your mortgage. The bank only needs to secure the required deposit amount against their property and, once that portion of the loan is paid off, your parents are released from the loan. ***
5. Look at what you can sell
Do you have anything you are no longer using, a set of golf clubs, baby stuff, old tools, clothes etc you will be surprised at how much money you can accumulate by having a garage sale or just listing items on market place.
6. Utilise your First Home Owners Grant
The FHOG is a good chunk of money ($15,000 in QLD) and lenders will often consider this as a part of your savings and deposit. This grant is a huge boost to getting you into your new home sooner and is definitely something that should be taken advantage of while the government has it on offer! ***
So there you have it; 6 ways to get into your first home sooner.!