First home buyers have to be very careful on their first home transaction to make sure that they get it just right. However, according to a recent study, about 60% of first home buyers tend to get confused with many things associated with the process. If you are on the lookout for new homes as a first time buyer, then you may find some clarity by going through the following pointers.
Most buyers find themselves scratching their heads in confusion about figuring out the ‘right’ amount to put down as a deposit. According to real estate experts at Capital Wealth Property, the ideal deposit amount is at 20% of the house’s value or higher if you can afford it. In reality, not all first home buyers are going to have this much money at hand. If you do decide to go ahead with a deposit lower than 20%, you will have to pay LMI or Lenders Mortgage Insurance.
Stamp duty is another confusing part of the home buying process for first timers. The stamp duty is a tax paid to the state government on the transfer of a property. The rules differ from state to state and from property to property. Bonuses on stamp duties can be expected in most cases. The amount is calculated as a percentage of the total sale depending on the location of the transaction. You can easily use a government website or a stamp duty calculator to find out what you may have to pay as stamp duty.
The first home owner grant
First home owner grants are also subject to change depending on the state. In most cases, first home owner grants are tied to stamp duty concession. Once again, you can find more information about first home owner grants here or by visiting the government website of your state.
Legal requirements and fees
In almost every case, first home buyers will need the assistance of a conveyance to get through the legal requirements. Conveyancing is the transference of property ownership from one owner to another. A conveyancer helps buyers through the legal process of property transfer. Some conveyancers are also solicitors. Typically, the fees for a conveyance range from $1000 - $1500. It is also a good idea to get a lawyer to look through the documents for pre-offer. Of course, pre-bid lawyer fees range from $2000 - $3000.
These are a few of the many confusing aspects of buying a home for the first time. If you too are a first home buyer, be sure to contact us at Capital Wealth Property for quality real estate guiding on the first major financial commitment of your life.