We have put together 5 simple tips to get a good deal for those buyers new to the property market.
- Sticking to budget: One of the most important aspects of buying is knowing what you have to spend. By having strict rules as to what you can afford it will stop you overspending and blowing out your budget. If you overspend, either by getting caught up in the drama of auction day, or being intent on competing with another buyer, you may get the property, but find out you cannot afford the payments.
- Knowing the worth of a property: Researching the market prices of an area is vitally important and should be done in depth before making an offer or bidding at auction. Your research should include the property’s sale history – which can occasionally be found online, how much comparable properties are selling for in the area and a history of recent sales in the area. A reputable agent can provide you with all these details and give you sound advice.
- Know the property inside out: Having a solid knowledge of the property puts you in a better position. While you don’t want it to have too many faults, knowing what problems do exist may help you in knowing how much to pay. Knowing the history of a property will also help. The best way to do this is by asking a lot of questions. Has it been passed in at auction? What was its sale price when the vendors bought it? How many offers have been made? How many people have inspected it? Has the price been reduced?
- Do some due diligence: Have all the relevant inspections been completed, especially building and pest. If so, you know you are considering a solid dwelling that is unlikely to fall apart in years to come.
- Don’t be in a rush: And don’t get too emotional. Doing things in a rush is often a bad idea. No matter how great a deal seems, don’t rush in without first doing due diligence. Always ask yourself, could there be a reason if everything seems so good? It is also important not to get too emotionally attached to a property. You can love it but getting attached pre-sale may mean overspending. Remember, buying or investing should be done by the numbers as well as by heart.
Stamp Duty
What is it?
Stamp duty, otherwise, known as ‘Transfer duty’ is a tax levied by all Australian territories and states on property purchases. The stamp duty a buyer pays is based on the property purchase price, location and loan purpose.
Insight into Stamp Duty
With rising property prices comes rising stamp duty, particularly in inner-city suburbs of state capitals. It’s a significant cost that all buyers should consider when determining how much they can spend on their next home or investment property.
Is Stamp Duty on Investment Property Tax deductible?
Investment property acquisition costs, including stamp duty paid upon purchase, are not expenses you can claim as tax deductions.
Exemptions and Concessions
- Residential home for First Home Buyers: No Stamp Duty for any purchase up to $650,000 with a concession for $650,000 – $800,000.
- Vacant land for First Home Buyers: No Stamp Duty for any purchase up to $350,000 with a concession for $350,000 – $450,000.
Other related fees
Mortgage Registration Fee: $104.50
Land Transfer Fee: $209.00
First Home Buyer Grant
$10,000 for First Homeowners who purchase or build a New Home valued up to $750,000.
Mortgage Broker
A mortgage broker works closely with a panel of lenders, including the big banks and smaller lenders you may not have heard of. They search through the range of available loans and guide you through the application process. Plus, they stay on top of the changing lender requirements, so you don’t have to.
They ‘shop’ the home loan market for you, saving you time. Everyone knows shopping around could lead to a better deal, but it can be time consuming – so a broker takes the hassle out of the process for you and researches the market