So you've decided to build your first home

So you’ve decided to build your first home – that’s great! You may also be eligible for the First Homes Owners’ Grant which will be a welcome help to reduce the cost of your new build.

WHERE DO YOU START?

Building a new house can be exciting, even life changing, but all the experts agree on one thing: careful planning beforehand is essential.

The first step involves some realistic calculations on the costs you will face in future years as well as the realities of the present. There’s also the “chicken-or-egg” question of whether it’s best to buy land first, then look for a suitable house design. I would highly recommend you choose the land first. This avoids any traps of selecting a design that doesn’t suit a plot of land.

THREE TIPS FOR BUILDING YOUR FIRST HOME

1.     When choosing the right community to live in, consider the local services you will need such as shopping, travel time, education and childcare, as well as things that can add to your quality of life like sporting, recreation and entertainment facilities.

2.     When choosing a block, make sure its size suits both your budget and the house design you have in mind. Also check for any height or setback restrictions and consider the energy savings that can be made by choosing the most appropriate solar orientation.

3.     Do as much research as you can to find a reputable builder you feel you can trust. Visit display villages to see what designs are available, and if any friends or relatives have recently built a house, ask for their advice and recommendations.

WHAT IS THE FIRST HOME OWNERS GRANT (FHOG)?

The First Home Owner Grant Queensland is a one-off payment designed to help first-home buyers enter the property market sooner. If eligible, you can be eligible for up to $15,000 towards buying or building your new home. The Queensland grant covers newly established houses, units and townhouses, you can even buy off the plan or choose to build yourself, as long as the value of your first home (including land) is below $750,000.

AM I ELIGIBLE FOR THE FHOG?

There is a criteria to be eligible for the First Home Owner Grant QLD, these conditions are:

•You (and any co-applicants) are a natural person (not a company or trust) aged 18 years or older.

•You are an Australian Citizen or permanent resident (or applying with someone who is).

•You or your spouse must not have previously received a first home owner grant in any state or territory in Australia.

•You or your spouse must have not owned residential property in Australia that you lived in.

•This grant is not available to purchase investment properties.

For a more detailed description, please see the QLD Government website.

OTHER AVAILABLE GOVERNMENT SCHEMES

In conjunction with the First Home Grant QLD, The First Home Buyer Guarantee is also available for first-home buyers. This scheme allows you to pay as little as a 5% deposit on your Home Loan without having to pay Lenders’ Mortgage Insurance as the Government acts as your “Guarantor”. 35,000 places are available each financial year for you to secure.

As a first-home buyer in Queensland, you may also be eligible to save on the cost of stamp duty. If you are buying vacant land to build your first home that is $400,000 or less for your block, you pay zero stamp duty. This can save you up to $7175 on the regular cost of stamp duty.

By utilizing these schemes, first-home buyers can potentially save money on their deposits, reduce their mortgage repayment burden, and get into the property market sooner. Additionally, these schemes are designed to help people who may not have a lot of savings or income, making it easier for them to achieve their home ownership goals.

For first-home buyers, it is always recommended to seek advice from a Mortgage Broker. Brokers have access to a wide range of lenders to ensure you achieve the best outcome for your mortgage while guiding you with their expertise and advice. They can also help you save time throughout the buying process by negotiating better loan terms and rates on behalf of their clients. And… Many mortgage brokers also offer their services for free.

Remember, the more you know, the better. So, keep asking questions and go into the entire process feeling confident with your decisions.

Our team at @ Real Estate have a great deal of experience in property sales and builds so if you are looking for local intel please don’t hesitate to get in touch. We would LOVE to help you find your happy place.