7 Practical Tips for First-Time Home Buyers in Sydney


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Buying your first home is always challenging, particularly in Sydney, where home values are drastically higher than in other parts of the country. But knowing how and where to look can help you save thousands of dollars in grants and incentives and ensure you find your dream home sooner.

We've compiled seven practical tips for first-time home buyers in Sydney to help you easily navigate this exciting life change. Let's begin!

Understand The Different Ways To Buy Property 

There are three main ways you can buy property in Sydney.

Private Treaty 

A Private Treaty sale is a standard residential property transaction. This is when the vendor, or the homeowner, sets a price at which they would like to sell the property. Their real estate agent then negotiates with potential buyers to close a sale as close to the vendor's price as possible.

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Buying by Tender 

Buying by tender is when you submit a single offer, usually accompanied by a 10% deposit, to a vendor, who either accepts or rejects it.

Buying Off The Plan 

Buying property off the plan refers to purchasing a home that has yet to be built. This purchase method allows you to secure high-end properties at relatively low prices, but there's always the risk of the deal falling through or the finished home being below your expectations.

Determine Your Borrowing Power 

Before you pick a house and apply for a loan, you must determine how much you can borrow. Your borrowing power depends on many factors like income, expenses, credit score, number of dependents, debt, etc.

If a lender concludes you have too many expenses or a high debt-to-income ratio, they will see you as a risk. This can mean either being refused a loan or offered loans with very high interest rates.

Use Westpac's borrowing power calculator to estimate your home buying power today.

Ensure You Meet The Requirements 

Once you've settled on a buying method and determined your eligibility for a loan, it's time to ensure you meet the requirements for home buyers in Australia.

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Let us help you. Call or Text Kenna Real Estate at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

To get a home loan in Australia, you must be over 18, a citizen or a permanent resident of Australia, married, or in a de facto relationship with a permanent resident or Australian citizen.

When reviewing your loan applications, most lenders will also consider your employment status, credit history, residency, and income. You could also qualify for a home loan if you're living in Sydney on a temporary visa, depending on your visa type.

Check Your Eligibility For Concessions/Grants 

Sydney is located in New South Wales, so if you're a first-time home-buyer in Sydney, you could be eligible for the NSW First Home Buyers Grant of $10,000.

This grant is available to first-time home buyers who purchase a property (new or established) as their primary place of residence in NSW.

First-time home buyers' concessions and grants can save you thousands of dollars in purchasing costs, so check if you're eligible for any.

Understand The Hidden Costs 

As a first homeowner in Sydney, you must pay several fees and taxes you may have yet to encounter. Here are some of the considerable hidden costs you should keep in mind.

  • Stamp duty is a tax levied by the NSW Government and is based on the value of your property. It can range between $8,990 and upwards of $56,990.
  • Land tax – this is paid on December 31st every year and applies to all homes worth more than $482,000. This is valued at $100 plus 1.6% of your home's value.
  • Loan application fees can be negligible or range up to $1000. This can also sometimes be waived by the lender.
  • Registration of title – You must register the title with the NSW state government for $75.
  • Legal fees – these can range between $1,500 and $3,000 depending on the complexity of your contract.
  • Independent valuer fees - this is the fee charged by an independent valuer to value the property you are planning to buy. This is generally $300 to $500.

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Let us help you. Call or Text Kenna Real Estate at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

Compare Home Loans 

As a first-time home buyer, never settle on the first deal a lender offers you.

Before you hop on board, always shop around and consider different offerings in the market. There are hundreds of different types of loans, and you could always land on a better lender with lower interest rates. Make sure only to settle once you have a clear picture of the market and are sure you're getting the best possible offer.

Plus, navigating the home loan process can be challenging for first-time buyers, so consider hiring expert help. 2 in 3 Australians use a finance broker when getting a home loan because of how much easier this makes the process.

You can also consider hiring a buyer's agent, who will help you with the entire purchasing process – from property search to negotiation, paperwork, and beyond.

Exploring home refinancing is another option. Choosing the right home refinance can lower your interest rate, reduce monthly payments, or shorten your loan term, ultimately saving you money and improving your financial stability.

Find The Right Property 

Homes can be lifetime investments, and it's essential to ensure you find the right property before settling. Consider your lifestyle, wants, and needs, and see how the property matches.

Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

You can consider compromising on some aspects of your first home if you want to buy again. But if this is a lifetime investment for your dream home, ensure everything is how you want it.

Decide whether you want a new or used home and consider its fixtures, power supply, lighting, size, ventilation, security, and other essential features. Also consider the property's location and the neighborhood, as well as its proximity to public transport, malls, restaurants, dog parks, or schools, depending on your and your family's needs.

Finding the right property is essential for you and your lender, so put your money where your heart is.

That was all for this post. We hope these tips give you more confidence to hunt for your dream Sydney home. Good luck!

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