The First Home Buyer Seminar last 27 July was a sold-out event packed with fun games, interactive Q+A and empowering knowledge from industry leaders!
We know that securing your first home can be daunting, but with the right information and guidance, it can be empowering. That’s why It’s Simple Finance and St Trinity Property Group partnered with Renee Roumanos and Nicholas El-Khoury to guide you through the ins and outs of owning your first home.
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? We’re now in a buyer’s market, in which goods or shares are plentiful, and buyers can keep prices down!
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 heavy lifting for you!
Managing Director & Founder, St Trinity Property Group
Nicholas El-Khoury has more than eighteen years of experience in corporate law, investment banking and property development.
Time vs Timing
In addition to Joseph’s insights, Nicholas 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!
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.
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.
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. You can easily estimate your stamp duty using our stamp duty calculator.
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:
Missed last night’s event?
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!
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.
Have a question? We’re just one click away!
Stay tuned for our next seminar near you!