{"id":1572,"date":"2023-05-18T06:08:48","date_gmt":"2023-05-18T06:08:48","guid":{"rendered":"https:\/\/reval.com.au\/blog\/?p=1572"},"modified":"2023-05-18T06:10:36","modified_gmt":"2023-05-18T06:10:36","slug":"go-tenant-first-home-buyer-3-easy-steps","status":"publish","type":"post","link":"https:\/\/reval.com.au\/blog\/go-tenant-first-home-buyer-3-easy-steps\/","title":{"rendered":"How to Go from a Tenant to a First Home Buyer in 3 Easy Steps"},"content":{"rendered":"<h4><span style=\"font-weight: 400; font-size: 14pt;\">Don\u2019t get hung up on having 10% or 20% deposit\u2026<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">If you are determined to get into the property market, you need to start thinking about several ways on how you can get in faster; this includes paying a deposit.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1582\" src=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/01.jpg\" alt=\"key\" width=\"960\" height=\"640\" srcset=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/01.jpg 960w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/01-300x200.jpg 300w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/01-768x512.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h6><span style=\"font-weight: 400; font-size: 12pt;\">In fact, 5% is also an option<\/span><\/h6>\n<p><span style=\"font-weight: 400;\">A lot of young people assume that the deposit ranges from 10-20% when the average minimum deposit you can do is only 5%. For instance, a $600,0000 property means a deposit of only $30,000 and\u202fnot\u202f$120,000. This has been the case for the past 30 years and it\u2019s a surprise that several home buyers are used to the \u201c20%\u201d they are being quoted.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1575\" src=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/03.jpg\" alt=\"tenant\" width=\"960\" height=\"640\" srcset=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/03.jpg 960w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/03-300x200.jpg 300w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/03-768x512.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<h6><\/h6>\n<h6><span style=\"font-weight: 400; font-size: 12pt;\">Buy off the plan<\/span><\/h6>\n<p><span style=\"font-weight: 400;\">With regards to purchasing a property that is still in development, time is your ally. This is because you may only have to pay an initial deposit of as little as $1,000, and you can then pay the remainder of the purchase price until the development is completed. You may also receive additional government incentives for purchasing a new property.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This could take anywhere from 6 months to 4 years to complete, which gives you extra time and money to plan and save, this also allows your property to grow in value. For example, in a balanced market, you would generally expect prices to trend upwards during an 18 month to 3 year construction cycle, so you could find that by the time your property is completed, it will be worth more than you are paying for it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, it\u2019s still crucial to know that markets are cyclical; this means that even though property values have steadily increased over the long term, with average property prices doubling every 10 or so years, there are still short term fluctuations where the market goes up and the market goes down.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h6><span style=\"font-weight: 400; font-size: 12pt;\">Be knowledgeable of your benefits<\/span><\/h6>\n<p><span style=\"font-weight: 400;\">If you\u2019re a first time home buyer and are eligible for government incentives, you will be allowed for an easier and faster access to the property market. So, make sure you know what you are entitled to.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1576\" src=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/04.jpg\" alt=\"purchasing home\" width=\"960\" height=\"640\" srcset=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/04.jpg 960w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/04-300x200.jpg 300w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/04-768x512.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><b>The First Home Guarantee Scheme<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The new government scheme for first time buyers is the <\/span><a href=\"https:\/\/www.nhfic.gov.au\/support-buy-home\/first-home-guarantee\"><span style=\"font-weight: 400;\">First Home Guarantee Scheme<\/span><\/a><span style=\"font-weight: 400;\">. As long as you\u2019ve saved at least 5% of the value of the property you\u2019re purchasing, <\/span><span style=\"font-weight: 400;\">Under the FHBG, part of an eligible first home buyer\u2019s home loan from a Participating Lender is guaranteed by the National Housing Finance and Investment Corporation (NHFIC). This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1577\" src=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/05.jpg\" alt=\"real estate agent\" width=\"960\" height=\"640\" srcset=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/05.jpg 960w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/05-300x200.jpg 300w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/05-768x512.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><b>Stamp Duty Concessions<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Stamp duty is a tax paid by the buyer of a property. It can be a substantial additional cost of buying a property so the Queensland government has decided to help first home buyers out by giving them an exemption on all or part of the cost of the stamp duty. It\u2019s similar to the vehicle stamp duty you pay when registering\/transferring the registration if buying a car.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The concession is based on whether you are buying an existing dwelling (i.e. one that has already been lived in) or you are building a new home. It also changes depending on the value of the property.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1579\" src=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/06.jpg\" alt=\"stamp duty\" width=\"960\" height=\"640\" srcset=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/06.jpg 960w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/06-300x200.jpg 300w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/06-768x512.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h6><span style=\"font-weight: 400; font-size: 12pt;\">Use a guarantor<\/span><\/h6>\n<p><span style=\"font-weight: 400;\">A guarantor is someone who provides a guarantee to the lender on behalf of a third party; usually an adult child or close family member. The guarantee works by using all or part of the equity in the guarantor\u2019s own property as security for the loan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This allows the borrower to borrow up to the entire cost of the property &#8211; up to 105% in order to cover purchasing costs &#8211; without a deposit.\u00a0 It can also be useful for borrowers who do have a deposit but less than the 20% required to avoid Lenders Mortgage Insurance. As the guarantor property provides security for the lender, LMI is not required.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1580\" src=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/07.jpg\" alt=\"guarantor\" width=\"960\" height=\"640\" srcset=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/07.jpg 960w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/07-300x200.jpg 300w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/07-768x512.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h4><span style=\"font-weight: 400; font-size: 14pt;\">Don\u2019t wait for the money to begin your purchasing journey<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Even without the deposit, you can always kick start your journey by looking at the type of properties you are interested in purchasing. What is your borrowing and repayment capacity? What does 10% or 20% actually look like for your situation?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, starting conversations with the right people could get you into the market easier and faster.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1581\" src=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/08.jpg\" alt=\"first home buyers\" width=\"960\" height=\"640\" srcset=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/08.jpg 960w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/08-300x200.jpg 300w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/08-768x512.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h4><span style=\"font-weight: 400; font-size: 14pt;\">Focus on the first home\u2026 not the DREAM home (not just yet)<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Remember, the goal is to get into the property market. By tweaking your perspective on the type of property you want to purchase as your first, reaching your goal faster which will then set you up to get you closer to that dream home in the future will be much more ideal.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1573\" src=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/09.jpg\" alt=\"first home\" width=\"960\" height=\"640\" srcset=\"https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/09.jpg 960w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/09-300x200.jpg 300w, https:\/\/reval.com.au\/blog\/wp-content\/uploads\/2023\/05\/09-768x512.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Your answers to these questions may give you a more realistic savings goal and may even determine whether you\u2019ll buy something new or something that\u2019s already been lived in. It may even suggest that you use the property as an investment rather than a residential one.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But of course\u2026 The first step to becoming a first time home buyer is chatting to experts like <\/span><a href=\"https:\/\/reval.com.au\/\"><span style=\"font-weight: 400;\">Reval Estate Agents<\/span><\/a><span style=\"font-weight: 400;\">. If you\u2019re looking for the perfect first homes out there, you can always talk to us.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Don\u2019t get hung up on having 10% or 20% deposit\u2026 If you are determined to get into the property market, you need to start thinking about several ways on how you can get in faster; this includes paying a deposit. &nbsp; &nbsp; In fact, 5% is also an option A lot of young people assume [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1574,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[371,367,369,368,15,19,370,66],"class_list":["post-1572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-blog","tag-dream-home","tag-first-time-home-buyer","tag-guarantor","tag-home-buyer","tag-queensland","tag-real-estate-agent","tag-stamp-duty","tag-tenant"],"yoast_head":"<!-- This site is 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