Thursday 9 June 2016

Things That Confuse the First Home Buyers the Most

Getting it right with your first home buying is most likely one of the hardest first times. Of course, you'll find it confusing because of the entirely new process you're going through.

The statistics imply that 15% of the people come under the category of 'extremely confused' people, and 49% fall under the 'somewhat confused' category.

 
Here's a list of the things that confuse the first homebuyers.

1.      Deposit Requirements
Don't be confused on the deposit amount. There is no 'right' deposit amount. The only ideal amount is 20% or higher. Because in case you pay less than 20%, you get to pay Lenders Mortgage Insurance (LMI). Also, the more you borrow, the higher is the LMI.

2.      Legal Requirements
A first homebuyer may get confused with the legal fees too. In case you're a first-home buyer, you'll need to hire a conveyancer who can also work as a solicitor. This will help you with the legal requirements of the sale.

3.      Stamp Duty
For many people who do not really know what a stamp duty is, stamp duty is a type of government tax applied because of the transfer of land or the sale of the property. You can use a stamp duty calculator to work out roughly how much amount you may need to pay on the basis of the final sale price of your property.

4.      First Home Grant
The first homeowner grant in Australia is a good beginning for your acquisition. The good news is that in the event you're a first homebuyer, as per the grant, you'll be rewarded with AUD $7,000 in cash by the Government of Australia. With minor differences in regulations among the various states of the country, the fundamental purpose of the grant is to aid the first homebuyers. Also, the grant is valid and effectual for all the states of Australia.

Do you fall under the list of First Home Buyers Australia? Well, you'll be blessed with the home of your dreams. Do not be confused. By the course, you'll know that it's not only one of the most overwhelming tasks but also the most joyful one.

Until next time.

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