Don’t miss this opportunity to make big savings on your first home.
From 1 July the NSW Government’s will remove stamp duty for first home buyers. This is an opportunity not to be missed for Tamworth and New England North West buyers looking to get into their first home, writes Tamworth real estate agent and Savvy Bird Rebecca Knight.
Many of my fellow Savvy Bird members are at the point where they may be trying to get into the market for their first home, and while it is never easy, the opportunity to buy minus stamp duty is a significant saving.
These policies are particularly valuable for the Tamworth and New England markets where the median house price is around $325,000 - well below the threshold for the full tax saving.
From July 1 you will save around $10,000 from your final outlay on the average $325,000 Tamworth home, to a maximum of $24,000 on a $650,000 home. In addition, first home buyers purchasing or building a new home are still entitled to a grant of $10,000.
With that in mind, searching for your first home can be a lot of fun but in my experience, there are a few things to keep in mind before you hit the streets.
Firstly, start the finance conversation with a bank or mortgage broker as soon as possible. You might be pleasantly surprised about your financial position and the amount you can borrow. On the other hand, there may be other hurdles you haven’t thought of and your bank will be able to guide you through this process.
If you are not at that point yet, cut up your credit cards, deal with your debts one by one and start saving hard for your deposit! I can’t recommend enough reading the Barefoot Investor by Scott Pape at any stage for his thoughts on how to get your finances looking fit and strategies for getting into your first home.
Secondly, know your limitations. This is your first home, not your forever home and you are likely to make some sacrifices. It is where you may live for five years so don’t feel you need to aim for the four bedroom house with a pool and two bathrooms this time. Maybe it will be a two bedroom unit or a smaller house. See it as a long term goal and your first step in your property journey.
I also urge you to be objective once you commence your search. You might fall in love with a property, but take a critical view and imagine that you own this house as you look through it – be very aware of factors like noise, light, neighbours, repairs and renovations that need to be done.
On the flip side, if you have been in your first home for a few years and are ready to take the next step to upgrade your property, this is also a great time to sell. There are likely to be more first home buyers in the market with a little more money in their pocket.
Passionate about property investing from a young age, Rebecca has over ten years’ experience in buyer management, negotiating and investing in real estate as a Licenced Real Estate Agent. Contact her on 0428 662 933 or firstname.lastname@example.org.