4 ways to get on the property ladder
Owning your own home can seem like a daydream that’s far, far away. But getting on the property ladder is easier than a lot of people realise. If that first rung seems a little out of reach, these tips could give you a leg up.
1. Temper your expectations: it’s your first home, not your dream home
Everyone dreams of their perfect house, but that swimming pool, bar and tennis court might have to wait. Buying a house is a massive decision. But you don’t have make it harder for yourself by imagining that you’ll have to live in your first property for the rest of your life. Be mindful that buying your first home is the first step – not the finish line.
2. Make the most of stamp duty concessions
Stamp duty, or land transfer duty, is a state tax you have to pay when you acquire property. It can be a nasty surprise for some homebuyers, because it’s due within 30 days of land purchase and isn’t automatically included in the price of your house.
But there’s good news for Victorians. As of July 2017, the government has made a lot of first home buyers exempt from stamp duty. For example, if you’re buying your first home and its worth $600,000 or less, you won’t have to pay the tax. And if the property is worth between $600,001 and $750,000, you’ll get stamp duty concessions on a sliding scale.
3. Pick a location with a higher First Home Owners Grant
Darren Mehl, Chief Operating Officer of Tick Homes, is a big fan of the The First Home Owners Grant. It can really help people get into their first home sooner.
He says, “The First Home Owners Grant is worth $10,000 for people who buy or build their first home in Melbourne, provided it’s worth under $750,000. But if you build in regional Victoria, the grant is doubled to $20,000. You might not realise that regional Victoria includes areas that are not that far from Melbourne’s CBD. Areas like Wallan and Bacchus Marsh are classified as regional, yet both have easy access by freeways and rail networks making travel time to the city quicker than some congested areas like Point Cook or Craigieburn. You also might like to consider ‘rentvesting.’
4. Find home builders with low overheads but quality output
Here’s a little secret about some home builders. You know those fancy-looking industry awards they stick on everything from their Facebook ads to their shiny brochures? They’re mostly funded by the industry, and the builders pay heaps of money to enter them.
Actually, you pay heaps of money for builders to enter them, because all of those costs are passed straight on to the customer. As any connoisseur of $10 bottles of wine would know, slapping a couple of ribbons isn’t evidence of quality – often, it’s just a sign that someone’s covering something up. Real quality is best measured by value for money, industry expertise and workmanship and the use of trusted brands.
Tick Homes doesn’t have fancy offices, or gimmicky awards. We’re a no BS business that has pulled together the best people in the industry, and we only partner with brands you trust. To find out more about how you can get on the property ladder sooner, have a chat with a member of our team today.