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First homebuyers

Understanding renting a home vs. buying a home!

 

You have been renting a home for too long. Now you are contemplating buying your dream home, your first home! And you are excited and at the same time apprehensive. Yes. Owning a house is a dream comes true! The expenses, charges, home loans and whether you will be able to realize this keeps you thinking.

 

There are many ifs and buts and pros and cons to buying a home vs. renting a home. What should guide you is this- what your future plans are, do you want to be a homeowner, have you been saving, your financial health and a lot more.

 

Inspyre Finance would like to walk you through the pros and cons buying a home or renting a home.

Renting

 

  • If the rents in and around the place you are renting increases, then your rental too will increase, but if the rentals reduce, you will continue paying the same amount, your landlord will not reduce the rental for sure.
  • The maintenance of your house or property is the responsibility of the owner and not yours. This feels very liberating at times.
  • Your rent is fixed for the term of the lease – usually 6 to 12 months The rentals are generally fixed as per the lease period. It can range anywhere from 6 months to a yearPaying the monthly rent for your home is not savings.
  • Generally, rentals for home you take on rent is lesser than home loan repayments.
  • There is uncertainty when you rent a house or apartment. By the end of the rental lease, you may be asked to leave, or you may have short notice to find another house.
  • You cannot make any modifications to a property you are renting as you will need your landlord’s permission, if you want to make any changes.
  • You can move out anytime. Even before your lease period gets over. And you can move at short notice too when you rent a house.

Owning

 

  • If the value of the house you won increases, that is a big plus. If you sell your home, then you profit more. And the profits can be used prudently and you have good savings potential.
  • All repairs and maintenance is on you when you own a home. Therefore, you need to be in the know and always set aside some money for this.
  • Depending upon the type of loans you choose, your interest rates will vary. If you use a variable loan repayment structure, then interest rates change often. For fixed loans, the interest rates stay the same.
  • Paying home loans translates to savings, as you are paying off the loans for a home you own. If the property market grows, so does the value of your home, your equity and it could be a good nest egg for retirement.
  • Your monthly home loan repayments could be high. This is also dependent on the type of loan, interest rates and other parameters. But whatever it is, you own the property and it is an asset.
  • When you buy a house and are paying off home loans, it is your own home and you can stay there for as long as you choose to and it is yours.
  • When you own a home, it is yours for eternity. Therefore, any changes, revamps, or alterations can be undertaken by you. The only thing to keep in mind is that if the revamps you plan are pretty large-scale, then you will need the building council permissions.
  • When you buy a house it is a commitment. It is for keepsakes and there is no question of moving out, unless you are looking to sell.

Learning A Little More About Renting A Home

 

When you rent a property, other than paying your monthly rent, there are no other expenses from your end. You don’t need to pay for maintenance, repairs or any other charges.

 

Whereas, when buying a home or before buying a home, there are many charges that you have to pay like home insurance, stamp duty and so on.

 

Eventually, you may always want to buy a house down the line, so it would be a good idea to plan, budget, and build savings so you have a good down payment that you can pay for the house you want to buy.

 

Always pay your rents on time every month and keep saving any which way you can. Cut down on unnecessary expenses and work as per a planned budget. This way, when you contact lenders like Inspyre Finance Pty Ltd, you can establish your track record and also show the savings you have and thus avail a home loan that is best-suited to you.

 

Please feel free to contact us if you are looking for first home buyers loan in Brisbane To connect with INSPYR Finance, call on 07 3103 0655.

 

The First Homeowner Grant

 

There’s good news for the first homebuyer. You can check if you are eligible for FHOG- The First Home Owner Grant. When you apply for this, you may realize more savings and that would be reduced stamp duty!

 

All set? Let’s get started!

 

Check your eligibility criteria if you qualify for FHOG-

 

Depending upon where you plan on buying your home, the State or territory, you are in, the conditions for eligibility differ.

 

The basic eligibility criteria include:

 

You should be over 18 years of age.

 

You should be an Australian citizen or a Permanent Resident.

 

You should be staying in your present place for at least 6 months or over.

 

If you had owned a home before in Australia, you are not eligible for FHOG.

 

If either you or partner/spouse or anyone you are jointly buying the home with had availed FHOG, then you are not eligible.

 

What exactly is a new home?

 

FHOG works best when you are buying a brand-new house. If the property is new and no one has lived there before, or it has been majorly renovated then FHOG works well. To be eligible, you should buy the home not as an investment but for you to reside in. And you should plan on residing there for at least 6 months and over.

 

There is a lot of savings when FHOG kicks in. There is savings on costs, charges, stamp duty and more.

 

New South Wales

 

The FHOG criteria in NSW include:

 

At least $10,000 is given to the first homebuyers as part of FHOG

 

There is no stamp duty for homes costing up to $650,000. There are stamp duty discounts for houses costing anywhere between $650,000 and $800,000

 

Constructing a home or buying the home that is already built, where the contract amount, or value of the land is not exceeding $750,000

 

Buying a new home that costs anywhere up to $600,000

 

To know more, click on NSW FHOG information

 

Queensland

 

The FHOG criteria in Queensland include:

 

At least $15,000 is given to the first homebuyers as part of FHOG when buying homes that are priced less than $750,000

 

There are discounts in stamp duty made available. The maximum discount given is $8,750 for houses that cost up to $504,999. Interestingly, the stamp duty discount is only about $875 if the house costs $549,999 and over

 

FHOG kicks in even if a person is only buying land and the construction happens later and no stamp duty is payable for land costing $250,000 or lesser. But there is not much savings in stamp duty for land that is costing up to $399,999 and the savings in stamp duty drops down steeply to a mere $525

 

To know more, click on QLD FHOG information

 

Victoria

 

The FHOG criteria in Victoria include:

 

At least $10,000 is given to the first homebuyers as part of FHOG when buying homes

 

The FHOG given for new homes that cost up to $750,000 in regional VIC can even go up to $20,000

 

There is no stamp duty payable for homes that cost up to $600,000

 

There is not much savings in stamp duty for homes that cost up anywhere from $600,001 – $750,000.

 

To know more, click on Victoria’s FHOG.information.

 

Tasmania

 

The FHOG criteria in Tasmania include:

 

At least $20,000 is given to the first homebuyers as part of FHOG when buying homes or even building or constructing new homes.

 

To know more, click onTasmania’s FHOG.

 

South Australia

 

The FHOG criteria in South Australia include:

 

At least $15,000 is given to the first homebuyers as part of FHOG when buying homes or even building or constructing new homes that cost up to $575,000.

 

To know more, click on South Australia’s FHOG.

 

Western Australia

 

The FHOG criteria in Victoria include:

 

At least $10,000 is given to the first homebuyers as part of FHOG when buying homes or even building a new home

 

The FHOG given for new homes that cost up to $750,000 in regional VIC can even go up to $20,000

 

There is no stamp duty payable for homes that cost up to $430,000

 

There is no stamp duty payable when a person buys land that cost up to $300,000 and is planning to construct on a later date

 

There is also savings in stamp duty for homes or land that costs anywhere from $400,000 – $530,000

 

To know more, click onWA’s FHOG.

 

Australian Capital Territory

 

The FHOG criteria in Australian Capital Territory (ACT) include:

 

At least $7,000 is given to the first homebuyers as part of FHOG when buying homes or even majorly renovating a home.

 

To know more, click on ACT FHOG.

 

Northern Territory

 

The FHOG criteria in the Northern Territory include:

 

At least $26,000 is given to first homebuyers as part of FHOG when buying new homes

 

Discounts in stamp duty can go up to $23,928 for an already built home if people qualify

 

There is also another grant made available if it is a home renovation and the amount available is about $10,000

 

To know more, click onNT’s FHOG.

 

To connect with INSPYR Finance Pty Ltd, call on 07 3103 0655


Saving money for the initial deposit for your first house

One of the biggest and most important steps in purchasing your first house is to plan, save and budget your expenses and create good savings. This is important not only for your initial deposit but you will also have budget keeping in mind the monthly loan instalment repayment. If you have a sizeable deposit, then you will be able to buy a home of your choice and the interest rates too will be lesser. If you show your savings and build a savings reputation, then lending companies will be impressed and will sanction home loans faster. It is very important to be in control of your expenses and to thoughtfully save. This is a good habit to inculcate and not just you, but your partner and family members too should be told to do so.

Here’s How You Can Save The Initial Deposit To Buy Your First House!

 

We understand that the most crucial steps in buying your first home are budgeting and saving for your deposit, and understanding your monthly loan repayments. The size of your deposit will determine what kind of property you can buy, as well as the interest rates on your home loan. A solid savings history is also important in getting a loan approved.

 

Learning to save can be an empowering process as you discover your ability to take control of your finances and your life. And it’s not something you need to do alone. We’re here to help demystify the deposit process – give us a call to chat through your options.

 

Set a realistic goal. You should be fully aware about your monthly expenses and also keep aside some amount for some sudden, unexpected expense. Factor in everything, money required for day-to-day living, food, commute, education, health, and rent and also eating out or buying things. Whatever it is stick to your plan. This way the drive to save is set and you will not squander the money or indulge in some unnecessary buying, spending or accrue expenses for unnecessary stuff.

 

Tell yourself, you want to be the owner of a home and soon. And then work towards owning a home by building a good sizeable deposit and be the proud owner of your dream home soon!

 

To know more, you can always speak to the lenders from Inspyre Finance Pty Ltd and understand the world of first home loans and home loans better.

 

To connect with us, call us on 07 3103 0655

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