Hi Ozbargainers,
My rental lease is going to run out in January 2024 so looking to purchase a property instead of renting again. I'm totally lost with the amount of Government schemes that is available atm
From my readings, I can see
My question is, are we allowed to stack FHBG with the free stamp duty scheme?
Many thanks.
I can't get FHOG because I'm not looking to buy a newly built home.
Well I guess you can't meet the criteria for that one then.
What state are you in?
And what price are you looking at buying an existing home?
NSW
Looking around 850k due to the stamp duty scheme. I know they cap at 800k but you can't get a 2 bedroom apartment for less than 800k in inner west Sydney lol
@Homr: Lucky I don't live in the inner west of Sydney.
Just check out the body corp fees and notes before you make an offer.
Good luck!
Yup, they stack. Need to meet both requirements though, as they differ.
You’re going to struggle to get a property closed by January, so hopefully you can go on month to month. It’s a tough market and usually it’s 60-90 days.
ahh thanks, you think it's a bit tight getting a property by mid-January? I initially was going to rent again until I found out about FHBG just tonight
I have around 100k deposit
It’s doable, probably depends how picky you are, but the loan and govt approval for first home buyers stuff will take a few weeks (took me almost 2 months last year because the bank approved the loan before seeking govt preapproval). I spent 3 months going to auctions and making offers before buying, and even if you bought tomorrow you’re too late for a 90 day settlement.
Depends, you're being too picky if it took 99 days to find a house. Settlement can be negotiated, in NSW usually set around 6 weeks mark. You can try gambling the system and put in the clause of subject to government grant blah blah approval but not sure if vendors like that.
@lgacb08: Vendors won’t take anything around subject to finance these days. And for a first timer it’s a learning curve. It was probably closer to 80 days, the first weekend or two was just scanning what is on the market, then going to an auction to see what it’s like, then finally bidding on places only for them to go $200k over reserve before starting from scratch again.
I am very happy with what I bought and the plan is 10+ years here, so it was worth it too. Nothing worse than getting a terrible house with problems.
All stack. If you are unsure which schemes and incentives apply to you, ask your broker. Also not all lenders will support all schemes, so you need to go with a lender that supports the particular schemes you are eligible for. Again, the broker will know.
Is a broker recommended when buying a property?
Unless you know the available lenders back to front, a broker if your best bet for getting a loan at a good rate, with the least amount of hassle. The broker will know with pretty high certainty whether or not a particular lender will approve your loan before putting in the application. This stops you wasting time with lenders who will reject you, and potentially screw your credit rating in the process. They also know which lenders support which schemes and who is eligible for what. With 100s of possible lenders, a broker can rapidly narrow your choices to a handful based on your circumstances. Imho, its worth using a broker.
Thanks. How much do brokers cost? Any recommendations that are OzBargain approved?
@Homr: Brokers are paid by the lender. You don't have to pay anything. You generally can't negotiate a better rate with the bank if you go without a broker, so its really no disadvantage to you. Get a recommendation from a family member or friend, and they might get a little kick back (not sure). There are also broker review sites.
Just saw a first broker, they advised that we can only apply for 1 scheme, they don't stack.
Should I see another broker to get another opinon?
One is to do with how you are funding the purchase, one is to do with payment of stamp duty on the purchase. They can definitely 'stack', as they are not really related.
I would speak with another broker or clarify that the first one understood what you were asking.
Yeah, just get another broker because that one is not competent enough. The first scheme is run by the federal government who pretty much sign on as your guarantor so you don't have to pay LMI with only 5% deposit. That scheme is very limiting anyway because your serviceability of the loan still pretty much dictate how much you can buy. The third scheme is run separately by the state government so you pretty much don't have to pay $35k stamp duty on your purchase.
Yes, you can 'stack' all 3, assuming you meet the criteria for each.