Buying a home is a big step!
There’s a lot to consider, from the merits of buying over renting, doing your research, inspecting a property, making an offer, contracts and settlement. We want to take the mystery out of the home buying experience, here you will find resources on buying your first home and the first home owners grant, buying at auction and the key to a successful bid, your complete property buying guide, stamp duty calculator, and download letter of offer.
Of course your personal situation is unique to you, so if you have any questions on the best place for you to start, don’t hesitate to contact us.
Buying your First Home and the First Home Owners Grant
Who is eligible to receive the Grant?
A first home buyer who fulfils the criteria below:
- At least one of the applicants must be an Australian citizen or have permanent residency in Australia. New Zealand citizens permanently residing in Australia who hold Special Category Visas may also apply.
- The applicant(s) or their spouse(s)/domestic partner(s) must not have previously owned a residential property anywhere in Australia prior to 1 July 2000.
- The applicant(s) or their spouse(s)/domestic partner(s) must not have owned a residential property anywhere in Australia on or after 1 July 2000 and occupied that property continuously for six months or more.
- All applicants must occupy the home purchased or built as their principal place of residence for a continuous period of at least six months commencing within 12 months after completion of the eligible transaction.
It is the responsibility of the applicant(s) to satisfy the Commissioner that they have meet the residency requirements. Applicants may be required to verify this later by providing documentation supporting their period of occupancy (e.g. electricity and gas accounts, bank statements, landline and/or mobile phone accounts and household contents insurance policies).
Applicants who do not meet the residency requirements must contact RevenueSA in writing within 14 days of the date on which it first became apparent that the residency requirements would not be complied with, and repay the grant.
- Each applicant must be a natural person (i.e. not a trustee or company) except in the cases of legal disability.
- Each applicant must be at least 18 years of age at the time of making application for the FHOG.
- The property purchased has a market value of $575 000 or less.
A property value cap applies to applicants who entered into a contract to purchase or build a home on or after 17 September 2010, or who commence construction as owner builders on or after 17 September 2010. The property value cap is $575 000 and applies to the market value of the property purchased or built.
In the case of a contract to purchase a home the market value is:
- the consideration for the purchase of the home; or
- where the consideration is less than market value, the market value of the property.
In the case of a comprehensive building contract the market value is:
- the sum of the consideration for the building contract and the market value of the property on which the home is to be built as at the time the contract is made; or
- where the consideration for the building contract is less than actual costs, the sum of the actual costs to build the home and the market value of the land on which the home is to be built as at the time the building contract is made.
In the case of an owner builder the market value is:
- the market value of the property on which the home is situated at the time the home is completed and ready for occupation as a place of residence.
To see if you may be eligible to receive the First Home Owners Grant, use the checklist.
Information provided by RevenueSA
Buying at Auction and the Key to a Successful Bid
It may seem difficult, or even daunting but there are many advantages of purchasing at auction. When the buyer and seller meet, and a conclusive sale eventuates, true market value for that property will have been established. It's a proven system of success. Once you've identified a property you're interested in, you'll know the date by which to arrange finance. You can then organise a building inspection if needed and familiarise yourself with the auction documents.
Your solicitor/broker can also inspect the title of the property and investigate all legal matters relating to your prospective purchase. If you've never attended an auction before you should definitely do so before attending the auction of the property you intend to purchase. This will help you to become comfortable with the auction process and it's various features. Of course, the whole process may never get to auction day.
Often a property is purchased 'by prior arrangement'. In this instance you can submit an offer to the property owner for their consideration - a key step of identifying your interest in the property. Let the real estate consultant know if you are interested in a particular property. Then, if another purchaser submits an offer prior to the auction, you'll be contacted and given the opportunity to submit your own offer. Inspect the property as many times as necessary and, if you have any doubts, arrange for a builder, plumber, electrician or any other trades-person to accompany you.
Tip: Review the auction documents prior to auction day. Make sure you're familiar with and understand all the details and conditions of sale (deposit, possession date, balance of payment, list of chattels etc). You don't want any unpleasant surprises come auction day. Arranging finance is as important, as sales by auction are unconditional, so it's vital to have finance confirmed before you bid.
If you have any concerns relating to market value, ask the real estate consultant to provide you with an insight into the local market - a very important consideration when trying to assess the market value of the property. You may also consider obtaining an independent property valuation as a further guide.
Your Complete Property Buying Guide
There is a lot to consider when buying a property. We are here to help with specialised, local information and genuine advice. To download our comprehensive Buyer's Guide please click here.
If you'd like more information please contact our team directly on 08 8285 4777 or firstname.lastname@example.org
Stamp Duty Calculator
Visit the RevenueSA website for an easy to use Stamp Duty Calculator which will assist you in calculating the amount you may have to pay at settlement. You only require the value of the property. Easy!
RevenueSA - Stamp Duty Calculator
Download Letter of Offer
Click the below link to download a 'Letter of Offer' form:
Once completed please fax or email back to us:
F: 08 8285 4999