Is now the perfect time to purchase your first property? Are you confident about buying your dream house?
Securing your first home can be daunting, but with the right information and guidance, it can be empowering.
With the property market now favouring buyers instead of sellers, this gives you a chance to purchase your dream home at a lower price point. That’s why It’s Simple Finance and St Trinity Property Group partnered with Will Wehbe, Renee Roumanos and Maggie Lichaa to guide you through the ins and outs of owning your first home.
Even if you missed the event, here’s a recap of the night full of expert insights and top tips that would help you turn your dream home into a reality in no time:
Founder & Managing Director, It’s Simple Finance
Joseph Daoud is the Founder and Managing Director of It’s Simple Finance. With his deep background in economics, finance and residential and commercial lending, he aims to make finance simple and accessible to all.
Last night, Joseph compared the property market then and now and shared why you should join the field.
Property Market Insights
1. Low-interest rates: The RBA decreased interest rates to an all-time low of 0.10%.
2. Property prices have hit record highs: In 2019, Concord’s median property price was $1,798,000. In 2021, it jumped to $2,666,000.
3. Australia’s property boom: COVID-19, low interest rates, government stimulus packages and focus on big-ticket items played parts in the shift to the seller’s market.
1. Interest rates have increased substantially: Australia’s current interest rate hiked to 1.35% this July.
2. Property prices are decreasing or steadying: Since January 2022, Concord’s median property price has decreased by up to 18%.
3. Travel has returned: Australians aren’t spending all their money in Australia only.
Why is now a great time for first-time buyers?
The current interest rate is a bit high, but why is this a good thing for first-home owners like you? Joseph compared the borrowing capacity of a professional investor to that of a first-time buyer:
Meaning that the first-home buyer is now in a better position to make a purchase than the professional investor of $110,160 – $36,720 = $73,440.
How can you break into the market with a low deposit?
Realizing that you have a better borrowing capacity is a great thing. Knowing that you can make low deposits is even better! Joseph shared some of the schemes and bank offers that may help you secure your first home:
1. First Home Guarantee – Allows first-home buyers to purchase a property with as little as a 5%-deposit without paying lenders’ mortgage insurance (LMI).
2. Family Home Guarantee – Enables single parents (first home or previous owners) to purchase a property with a deposit of as low as 2%.
3. ANZ professional packages – 5% deposit if you’re a medical practitioner, dental practitioner or specialist (e.g cardiologist). 10% deposit if you’re a chiropractor, veterinarian, optometrist, physiotherapist, lawyer, or accountant.
4. Bluestone – Minimum of a 10% deposit, no LMI.
5. St. George Bank – 15% deposit home loans for first-home buyers.
6. 86 400 – 15% deposit home loans for first-home buyers.
Why do you need a broker?
You may think you don’t need a broker, but Hayden’s case may tell you otherwise. Hayden relied on a bank, made an offer but was declined and told to come back in six months when he had saved more.
What did Hayden do next? He contacted Joseph and got his dream property with a 7%-deposit! Joseph used his expertise, assessed the situation and discovered Hayden was a fit for NAB. Within a fortnight, Joseph helped Hayden get his loan approved.
If you want to have what Hayden got, chat with our expert brokers for free, and we’ll do the hard work and assess your circumstance and eligibility!
Sales Director, St Trinity Property Group
Will Wehbe delivered more than $1B in gross sales revenue and a 3,000-unit pipeline at St Trinity. With his financial, commercial and property background, he works with a range of developer clients and has access to first-hand information to assess projects before they go out to the market.
With his experience, Will debunked what you read on the media and revealed why now is actually a great time to make your first purchase.
1. Vacancy rates are at record lows
2. Interest rates are increasing
3. Inflation rates are up to 5.1%
4. House and land builders are going bust
5. Apartment vs house price gap at an all-time high
Time vs Timing
In addition to Joseph’s insights, Will also gave an idea about why first-time buyers like you are in a great position to make their first purchase:
1. Property prices: Many experts forecasted that the current compounding factors will increase property prices in the years ahead.
2. Apartment demand: The population growth paired with the existing supply shortfall will affect the demand for apartments in the future.
3. Supply vs demand: By 2061, NSW will need 1.7 million additional homes, but only 6,000 are currently under construction.
Given the headlines and the supply vs demand, should you make your first purchase now? Staying ahead and having a great broker can help you save thousands on your loans!
Tell us your doubts. We work with over 40 banks and lenders, so you get more choices and better deals that suit your goals and needs.
Conveyancing Solicitor, Fazzini Lawyers
Renee Roumanos has a combined ten-year experience in legal fields ranging from, but not limited to, conveyancing, wills, compensation and commercial law. She aims to bridge the gap between the complex legal system and her clients’ needs by adding value to and guiding them through every step of the process.
Renee delved into conveyancing and how it includes the process of transferring ownership of a property from one to another and all the steps involved in the transaction.
What should you know about conveyancing?
1. Due diligence – Before the cooling-off period ends, pest and building inspections should be organized to make sure that the property is structurally sound and free of any pest infestations.
2. Contract for sale – This contract provides details about your rights and obligations in the purchase and the details of the property, such as land size and any restrictions.
You should always have your contract for sale reviewed to understand the terms and conditions and land features and implications. It also allows you to minimise risks and negotiate the terms.
When is a contract legally binding?
Renee reminded that it happens from the time you enter it, but a cooling-off period allows you to terminate it at a minimal penalty.
1. Conditional exchange
• 5-day cooling-off period. You can cancel anytime, but you will forfeit the 0.25%-deposit paid.
• During the cooling-off period, you should satisfy the building, pest and finance.
2. Unconditional exchange
• No cooling-off period
• S66w certificate is provided
What includes buying off-the-plan?
Off-the-plan means the property hasn’t been built at the time you enter the contract. Some laws place obligations on builders, so you are protected.
• You can claim compensation if significant changes occur between the contract and the finished unit.
• You can negotiate your deposit to 5%.
Benefits of off-the-plan
1. More time to save
2. Stamp duty on the purchase price (not value)
3. If residential, stamp duty (also called transfer duty) is payable for 12 months after the contract price or completion (whichever comes first)
4. Brand new, more energy-efficient and in better condition
What is stamp duty?
When you buy a home, you need to pay stamp duty, which is a tax charged by the state and territory governments to transfer the ownership of a property. It is payable within 3 months of contract exchange or on settlement.
Renee also provided details about the First Home Buyer Assistance scheme and the First Home Owner Grant that will help you with the stamp duty in NSW:
When does settlement occur?
Settlement normally occurs six weeks after the exchange, but it can be altered to suit the particular transaction or the needs of the parties. If you buy off-the-plan, settlement typically happens approximately 14 days after you issue an occupation certificate.
Stressed about the complicated terms and conditions involved in your first purchase? Don’t worry because our expert brokers will make things easy and breezy for you!
Missed last night’s event?
Stay tuned for our next seminar, and don’t miss this chance to enjoy the prizes and walk out feeling confident to make your first purchase!
Make this moment count! Get in touch with our lending specialists for free, and we’ll happily help you get into your dream home soon.
Keep an eye out for our upcoming blogs about the grants and schemes that may help you secure the keys to your first home.