Buying your first home is a major milestone in life, and it’s important to be prepared. This is especially true in New South Wales (NSW), where the property market is notoriously competitive.
If you’re a first home buyer in NSW, here’s a comprehensive guide to help you through the process:
1. Do your research
The first step is to do your research and understand the NSW property market. This includes knowing what kind of property you’re looking for, where you want to live, and how much you can afford to spend.
A good place to start is the NSW Government’s First Home Buyer website. This website provides information on all aspects of buying a home in NSW, including eligibility criteria for government grants and schemes.
2. Get pre-approved for a loan
Once you have a good understanding of the market and your budget, it’s time to get pre-approved for a loan. This will give you an idea of how much you can borrow and how much your repayments will be.
To get pre-approved for a loan, you’ll need to provide your lender with some basic information, such as your income, expenses, and savings. You’ll also need to have a good credit score.
3. Find a property
Once you’re pre-approved for a loan, it’s time to start looking for a property. There are a number of ways to do this, such as attending open inspections, searching online real estate listings, or contacting a real estate agent.
When you’re looking at properties, it’s important to keep your budget in mind. It’s also important to consider factors such as the location, size, and condition of the property.
4. Make an offer
Once you’ve found a property that you like, you’ll need to make an offer. This offer should be in writing and should include the price you’re willing to pay, the settlement date, and any other conditions.
The seller can either accept your offer, reject it, or make a counter-offer. If the seller makes a counter-offer, you can either accept it, reject it, or make another counter-offer.
5. Get a building inspection
Once your offer has been accepted, it’s important to get a building inspection done. This inspection will identify any major defects in the property.
If the building inspection finds any major defects, you can either negotiate with the seller to fix them, or you can pull out of the sale.
6. Settle on the property
Once you’re satisfied with the building inspection, it’s time to settle on the property. This is when you’ll pay the seller the purchase price and take ownership of the property.
Settlement is usually a complex process, so it’s important to have a lawyer or conveyancer help you through it.
7. Move in and enjoy!
Once you’ve settled on the property, it’s time to move in and enjoy your new home!
Government assistance for first home buyers in NSW
The NSW Government offers a number of assistance programs for first home buyers*. These programs can help you with the upfront costs of buying a home, such as the deposit and stamp duty.
Here is a summary of the main government assistance programs for first home buyers in NSW:
First Home Buyer Assistance Scheme (FHBAS): This scheme offers a full or partial exemption from transfer duty for first home buyers who purchase a new or existing home valued up to $800,000.
First Home Owner Grant (FHOG): This grant provides $10,000 towards the purchase price of a new home valued up to $750,000.
Shared Equity Home Buyer Helper (SHEB): This scheme helps eligible first home buyers with a deposit for a new home. The NSW Government provides up to 40% of the purchase price as an equity loan, which is interest-free for the first five years.
To be eligible for any of these programs, you must meet certain criteria, such as being an Australian citizen or permanent resident, and not having owned a property before.
*Information accurate as at October 2023.