nccParticipant@ncc2145Join Date: 2014Post Count: 2
I am a first home buyer with an annual income of $120k. Wife doesn’t earn and have 2 kids.
Have about $20k that I can use as deposit.
1) What should be the budget that I could look for to purchase a new home?
2) What are the possible suburbs in Sydney that I can consider within this budget?
3) How do I leverage the FHOG towards financing my purchase of the home?
CCJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Welcome aboard :-)
1. Generally what you can afford – but keeping in mind that the banks have their own way of determining what your maximum borrowing capacity is. Unfortunately $20k won’t stretch too far in Syd when you take into account that 5% is the minimum deposit and then there’s purchase costs too (which usually amount to around another 4% of the purchase price….assuming you’re not getting any concessions and are buying established. If you’re buying something new you might be eligible for the FHOG and stamp duty concessions).
2. You would have to beef that deposit up a bit for Syd – it’s an expensive city to buy in! Out far west the prices are cheaper.
3. It needs to be a new property that you’re purchasing. Are you buying new?
JamienccParticipant@ncc2145Join Date: 2014Post Count: 2
Thanks for your response.
Yes, I am looking at new properties.
How do I leverage the FHOG towards financing my purchase?
CCTerrywParticipant@terrywJoin Date: 2001Post Count: 16,190Kinnon BellParticipant@kinnonJoin Date: 2014Post Count: 151
There is a $15k FHOG for new homes in NSW. As of 1st Jan 2016 it will be reduced to $10k.
NCC, when you say you want to leverage the FHOG towards your purchase are you meaning you want it to form part of your deposit or you’re just wanting to take advantage of it?Mick CParticipant@shapeJoin Date: 2010Post Count: 1,099
There’s 2 FHOG in NSW still current as of today.
1. $15,000 cash grant for new proprieties ( can be completed just never sold), off the plan, vacant land ( lay foundation within 12 month of settlement) – till Jan 2016…
After Jan 2016 it drops to $10k
2. Second grant is the Stamp duty waiver or reduction for first home buyers buying vacant land and, new properties and off the plan.
Both grant has a purchase price restrictions ~$650,000- $750,000 depending on the grant you want to target. Speak to OSR and your lawyer.
The FHOG can form part of the deposit for your property but if your own deposit is less than 5% in genuine savings you may need to apply for a non-genuine savings loan.JayParticipant@chesJoin Date: 2014Post Count: 8
Need some advise please
My partner doesn’t want anything to do with home loan or any debt, so what i have done is i have contacted my broker and talked to him about my situation and see what my borrowing power could be i was told yesterday according to the numbers (income & liabilities) i can only borrow $100k i was told i need my partners income to boost up my borrowing power. I feel stuck but i don’t want to be stuck.
what can i do? someone help please.
Email MeTerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
Not much you can do if that is the case except:
1. earn more income
2. talk your spouse around
3. find another partner to invest with
4. speak to another broker to check the figures.