| Untagged | 25 May 2010 2:15 PM |
| Granted, Be a First Home Buyer can be exciting by Michelle Kour | |
For the most part it appears that Australia has been able to avoid the effects of the global economic crisis. Its banks are in good shape, the economy is robust and the mortgage industry is going gangbusters. The Australian government has put in place several different programs intended to further stimulate the economy, each one being offered in different parts of the country. Each one is directed towards the real estate market, more specifically, the first home buyer.
There may be nothing more exciting than buying your first home: The thrill of searching different neighborhoods, looking for just the right house. Of course, it can be just as nerve racking as it is exciting, what with all the different styles of architecture, and not to mention the fact that it is a huge financial obligation to take on. Yes, being a first home buyer can be both exciting and terrifying at the same time. The first home buyer grant is intended to stimulate the economy as well as the first home buyer, as if they’re not already stimulated enough. As the name of the program indicates, it is a grant for anyone buying their first home (including immigrants with permanent status) and it is a lump sum payment of $7,000. The first home owner grant is paid to the buyer of the house directly. The first home owner grant is also available in Tasmania, Victoria, New South Wales and South Australia as well. The First home buyer grant program varies with the part of the country that you live. For example in New South Wales a first home buyer can get an additional $3,000 when you buy a brand new home. In Victoria the first home buyer can get an additional $2,000 when they buy an existing home or $11,000 when they buy a new home, this is known as the first home called the first home bonus and it expires June 30th, 2010. In Tasmania when a first home buyer buys property with a value anywhere $140,000 to $350,000 they are eligible for a rebate of $4,000. The Australian economy did not weather the global economic crisis by happenstance, they were prepared. In the 1990’s the government put reforms in place that allowed them to avoid most of the problems that the rest of the world experienced during the crisis. Even with the availability of the first home buyer grant and all of its variations, to get a first home buyer loan in Australia you will still need to have a fairly hefty bank account and be able to document your income, the era of the low doc loan is definitely over. Don’t forget about Stamp Duty. The stamp duty varies from area to area. While the stamp duty on a $400,000 home in New South Wales is zero in Victoria is $16,370. Yes, being buying your first home can be very exciting, nerve racking and maybe a little scary, Australia has made just a little bit less expensive.
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