Planning to buy our first home...

Hi everyone,

We are planning to buy our first home in North-West Sydney. We are moving to Sydney from Brisbane this month. We have heard that if we buy our first home before 31/12/2011 we will get the first home buyer grant as well as stamp duty concession. But from 1/1/2012 we will not get anything. Is this correct information? We don’t want to overpay just to get these benefits, but at the same time we don’t want to pay heaps more if we wait till mid next year. We will be very new to Sydney and don’t want to rush to buy our first home. Will we be stupid to wait till mid next year to buy our first home? We are very confused and not really sure what to do? Can someone please give us some light on this?

Thanks,
Babbajina:confused:
 
The grants etc amount to several thousand dollars -- enough to care about, but not enough to rush in and risk over-paying for property more than you'll save.

I think you should start looking NOW with a plan to buy in a couple of months. A lot can be done through the web listings and google maps and street view.

If you are new to Sydney then you'll need that to work out where you'll want to live. It's a big place and prices vary greatly.

Good luck :D
 
Babbajina,

The stamp duty concessions in NSW are very enticing atm. However, I'd suggest you take a bit more time to become familiar with Sydney and its many, many suburbs. Visit houses, take a walk around, and then choose where you want to live. As you are new in the area, you are the prime target for Real Estate Agents who will make you sign the dotted-line before you can say 'why?'
 
Hi everyone,

We are planning to buy our first home in North-West Sydney. We are moving to Sydney from Brisbane this month. We have heard that if we buy our first home before 31/12/2011 we will get the first home buyer grant as well as stamp duty concession. But from 1/1/2012 we will not get anything. Is this correct information? We don’t want to overpay just to get these benefits, but at the same time we don’t want to pay heaps more if we wait till mid next year. We will be very new to Sydney and don’t want to rush to buy our first home. Will we be stupid to wait till mid next year to buy our first home? We are very confused and not really sure what to do? Can someone please give us some light on this?

Thanks,
Babbajina:confused:

Hi Babbajina and welcome to the forum

Firstly, you say you want to move to the northwest region. Which suburb do you have in mind? If you provide a budget and basic needs, we should be able to narrow down your choices here :)

Secondly, as has been pointed out, you are still entitled to the grant of $7K if you haven't bought property before in Australia. Yes, the stamp duty exemptions end on Dec 31 2011 so if you don't exchange contracts before then you miss out. There is no stamp duty payable up to $500K at all and then it's a sliding scale up until $600K, by which time you're paying full stamp duty.

However, you are leaving it rather late to locate something before the end of the year now and keep in mind that if you rush into a purchase, the savings made on SD may well be negated by your hurried decision. Far better to take your time to get to know the market (especially as an interstate buyer) as the NorthWest is a rather large and varied area with many variations in price across the suburbs.

I hope this helps somewhat. Happy moving!
 
Hey guys...thank you so much for all these informative replies…

We are planning to buy somewhere in Stanhope Gardens, Kellyville or Kellyville Ridge. From what I understand now is wait for few more months and take our time to buy our first home. We want to buy a 3bed 2bath small house under 500k…do you think that is good enough? We have never owned a property in Australia before so hopefully we will get that 7k grant. But if we wait till next year we have to pay somewhere around 18k as stamp duty??? Is that correct? Also, how much someone can normally negotiate on the listed price?

Thanks.
 
Hey guys...thank you so much for all these informative replies…

We are planning to buy somewhere in Stanhope Gardens, Kellyville or Kellyville Ridge. From what I understand now is wait for few more months and take our time to buy our first home. We want to buy a 3bed 2bath small house under 500k…do you think that is good enough? We have never owned a property in Australia before so hopefully we will get that 7k grant. But if we wait till next year we have to pay somewhere around 18k as stamp duty??? Is that correct? Also, how much someone can normally negotiate on the listed price?

Thanks.

Oooh very tight budget for a quality home in those areas- your best bet is going to be Parklea side of Stanhope Gardens if you want a house and not a duplex/townhome. Even then it's likely to be on a busier road or very small and basic for under $500K. I know this area intimately and I think if you really want more value for your money may be better off looking in nearby older suburbs such as Quakers Hill and Kings Park.
 
We are planning to buy somewhere in Stanhope Gardens, Kellyville or Kellyville Ridge.
This is Jacque Parker's back yard, from www.housesearchaustralia.com.au

But if we wait till next year we have to pay somewhere around 18k as stamp duty??? Is that correct?
Correct. In my opinion, in your position, I'd be paying a good Buyers Agent like the abovementioned Ms Parker, a fee to find you a great property for around 1/2 as much as you would pay the NSW Government if you leave your purchase until next year.

That way, you'd save $9K (in stamp duty less BA fees) and let someone else do all the running around for you.

Also, how much someone can normally negotiate on the listed price?
It's not a matter of discount off the listed price.
For example, as BAs ourselves, we have often achieved 3-4x our fees off the listed price. Most of the time we can at least achieve a discount of our entire fee off listed price.
Other times, the listed price was $20K under market because an out-of-area agent priced it incorrectly, so we paid full asking price.

The bottom line is you have to know your values. Then you have to know the streets to avoid / choose. Develop a relationship with some good agents who will look out for you - this will be essential because of your budget!

You can get your own education in all of that or hire some help. It's your call.

All the best with the move down. :)
 
Contrarian view

Hiya

Sorry but i am sticking my neck out for a contrarian view! Please bear with me:p


I WILL never buy in those suburbs you mentioned...too far from 2 major CBDs for my liking and not on any train line (well YET!!??:p) Qn yourself where do you work?

Drive around these suburbs and they are all cookie cutter types of houses; where the house takes up almost the whole block! Very popular with a certain demographic of new immigrants though...they like them swanking new!

I would be careful if it was my first home purchase; on that kind of budget; might set you back a few years on your investment journey (ie if you Do intend to do that , i may be presumptious here! You may be on a squillions income...:p)

Remember: PPOR (nice as it is) is a LIABILTY, a LIABILITY, a LIABILITY...


SO what will i do?

Buying a "cheaper" house nearer Parramatta CBD (where also a certain demographic of new immigrants like to live); pay it down as much as possible and then invest!

BUT may not look as swanky nice though and i know that is important for certain people....
 

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I WILL never buy in those suburbs you mentioned...too far from 2 major CBDs for my liking and not on any train line (well YET!!??:p) Qn yourself where do you work?

Drive around these suburbs and they are all cookie cutter types of houses; where the house takes up almost the whole block! Very popular with a certain demographic of new immigrants though...they like them swanking new!

I would be careful if it was my first home purchase; on that kind of budget; might set you back a few years on your investment journey (ie if you Do intend to do that , i may be presumptious here! You may be on a squillions income...:p)

Remember: PPOR (nice as it is) is a LIABILTY, a LIABILITY, a LIABILITY...


SO what will i do?

Buying a "cheaper" house nearer Parramatta CBD (where also a certain demographic of new immigrants like to live); pay it down as much as possible and then invest!

BUT may not look as swanky nice though and i know that is important for certain people....

Couldn't agree more. Stay away. No money to be made here. Way too family orientated.

Move along, move along. These aren't the houses you're looking for.
 
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