Tips for First Home Buyers

Purchasing your first home is an exciting milestone, but it can also be daunting given the legal, financial, and practical considerations involved. At Solari & Stock Lawyers, we understand the challenges first home buyers face and have compiled essential tips to help you navigate the process with confidence.

1. Understand Your Eligibility for Government Schemes

The NSW Government offers several schemes to assist first home buyers, including the First Home Buyers Assistance Scheme. This scheme provides:

• Full exemption from transfer duty for new and existing homes valued up to $800,000.
• Concessional rates for homes valued between $800,001 and $1,000,000.
• For vacant land, full exemption applies up to $350,000, and a concession for land valued between $350,001 and $450,000.

To be eligible, you must:

• Be a first home buyer (never owned residential property in Australia).
• Be at least 18 years old.
• Be an Australian citizen or permanent resident.
• Occupy the property as your principal place of residence for at least 12 months (this requirement was previously six months).

2. Explore the First Home Owner Grant

The First Home-Owner Grant is a one-off payment of $10,000 available to eligible first-time buyers purchasing or building a new home in New South Wales.  This grant is typically available for new homes worth up to $600,000, or up to $750,000 for a comprehensive building contract or owner-builder or a substantially renovated homes meeting specific criteria. The home must not have been previously occupied or sold as a residence. Additional eligibility criteria apply.

3. Get Your Finances in Order

Before making an offer or attending an auction, ensure you have:

• Final or unconditional loan approval, not just pre-approval.
• A clear understanding of your borrowing capacity and all associated costs, including stamp duty, legal fees, and inspections.
• Budgeted for additional expenses such as moving costs, insurance, and council rates
• Before bidding at auction, ensure you obtain legal advice on the Contract, as auction purchases are unconditional and legally binding with no cooling-off period. You must be fully informed about the terms and confident in your financial position before committing.

4. Conduct Thorough Due Diligence

Engage professionals to carry out:

• Pest and building inspections.
• Strata reports (for apartments or townhouses).
• Title and survey checks.

These steps help you avoid unexpected issues and ensure the property is a sound investment.

5. Meet the Residence Requirement

You must occupy your new home as your principal place of residence for at least 12 months, commencing within 12 months of completion. Failure to meet this requirement may result in having to repay any benefits received, plus interest and penalties. Australian Defence Force personnel may be exempt from this requirement.

6. Seek Professional Legal Advice

Conveyancing is a complex process, especially for first home buyers. A solicitor or conveyancer will:

• Review contracts and negotiate terms.
• Ensure all legal requirements are met.
• Guide you through settlement and registration of your title.

7. Be Wary of Common Pitfalls

• Do not rely on verbal representations—ensure all agreements are in writing and any representations made by the Vendor or selling agent that you intend to rely upon are included in the Contract.
• Avoid entering into contracts or auctions without being fully informed and financially prepared.
• Be cautious of “off the plan” purchases and understand your rights and obligations before signing.

Buying your first home is a significant step. By understanding your entitlements, preparing your finances, conducting due diligence, and seeking professional advice, you can make the process smoother and more secure. For tailored legal guidance, contact Solari and Stock laywers today.

Our experienced Sutherland Shire team can help guide you through the process. Contact our Property Team of Michael Solari, Vicki DeBonis and Valentina Abouzeid on 8525 2700, or click here to request an appointment.

Article by Valentina Abouzeid
Image created in Canva