The guide on: How to buy smart

Most of us one day have been or are in a position to finally get into the property market.

If you have never purchased before in your life you fall into the category of First Home Buyer - FHB



If you instead have purchased a property before either to live or as an investment you are not considered a FHB anymore and you will not be able to take advantage of some of the perks of a FHB.

Most of the time as a FHB you are able to get into the market without paying stamp duty. 

Stamp duty is a tax that is levied on single property purchases or documents. The amount payable varies depending of your state of residence and each state has different rates, see examples below if you were to buy a property that cost $600K in each state.

ACT - $600.000,00 - Stamp Duty - $16,660.00

QLD- $600.000,00 - Stamp Duty - $20,025.00

NSW - $600.000,00 - Stamp Duty - $22,490.00 

TAS - $600.000,00 - Stamp Duty - $22,497.50

WA - $600.000,00 - Stamp Duty - $22,515.00

SA - $600.000,00 - Stamp Duty - $26,830.00 

NT - $600.000,00 - Stamp Duty - $29,700.00

VIC - $600.000,00 - Stamp Duty - $31,070.00

Now if you think that buying property is already hard and expensive imagine when you have to come up with at least an additional 5% deposit just to pay stamp duty depending on where you live? Makes the whole process just much more difficult from a savings point of view.

This is where most os the states and governments have some help to FHB, giving them, depending on the purchase price and type of property, Stamp Duty Concessions and in some cases Grants.

Each state has different incentives but most of them will allow you to buy your first property without paying stamp duty as long you stick to the purchase price defined by the Estate.

ACT - Stamp Duty - Concession 

QLD- Stamp Duty - Concession 

NSW - Stamp Duty - Concession 

TAS - Stamp Duty - Concession 

WA - Stamp Duty - Concession 

SA - Stamp Duty - Concession 

NT - Stamp Duty - Concession 

VIC - Stamp Duty - Concession 

So, if you are FHB and want to be smart the best way is to stick to the trash hold and don’t pay for Stamp Duty in your first purchase. 

Money

The next more important thing to take into consideration as FHB especially with such low interest rates is getting a mortgage repayment that won’t impact with your current savings.

What do I mean?

Make sure that your repayments + bills don’t consume all your income making it impossible to keep saving. 

You need to be in a situation where you are still able to save money and either put into your off-set-account or into another investment for rainy days.

Make sure your Broker helps you find the right balance and gives you the best loan.

Make sure as well you don’t simply walk into a bank and ask for money, a Broker has access to over 40 lenders in Australia and will be able to give you the best option for you.

Check out my got to Brokers that I use.

I know that is a very difficult concept especially when we are buying an asset with so much emotional attachment, however try to use a calculator to buy your first home and not your heart.

Your money is worth more into an Asset than just sitting in your bank account where it takes you longer to save than to keep up with the housing prices.

Remember you first home will not be you forever home but just an entry point into the market that will eventually help you buy your forever home.

Still confused? Get in touch, I’d love to help!