Melbourne-founded property technology business, AD Group have partnered with Colliers International to promote their First Home Buyers Guide to buying off-the-plan in NSW, a manual for first-home buyers to assist them in entering the NSW property market.
‘We are really proud to have developed Colliers International First Home Buyers Guide,” said Dennis Vertzayias, National Director, Head of NSW Residential Project at Colliers International.
“The handbook is a six-step process that guides young professionals through key milestones that need to be considered when purchasing a home for the first time, so that individuals can be empowered with the facts and enter the property market with confidence,” said Vertzayias.
Scott Rudgley, Sales Director of AD Group says “It is no secret that first home buyers had given up hope of breaking into the property market in recent years. With the property market coming back from historically high levels, it has restored faith but can still seem like a daunting process.
We’re really excited to partner with Colliers International on this guide to buying off the-plan in NSW to help instil some confidence for these first home buyers.”
“Prices have corrected over the last 12 months enticing first home buyers as they are more in line with their budgets and aspirations. In saying this, the reality is that the best time to buy is when you can afford to do so, regardless of the market conditions. Play the long game and you’ll reap the rewards. It’s a buyer’s market so you should be able to negotiate a great deal.
Some developers are adding incentives like furniture packages or mortgage relief for up to 6- 12 months in some instances which further assists first home buyers too,” said Rudgley. The guide breaks down buying off-the-plan properties into the following six key areas:
Current government incentives
“There are two major incentives from the government to assist individuals in purchasing their first home that buyers should capitalise on,” said Rudgley.
In NSW, a $10,000 grant is available for first homeowners through the First Home Owner Grant (New Homes) (FHOG) scheme.
The grant is available for buyers of new properties worth up to $600,000, while stamp duty is waived for all new and existing homes valued up to $650,000 and with stamp duty properties above $650,000 reduced on a sliding scale.
“Additionally, for those that want to tap into their super, the First Home Buyers Super Saver Scheme (FHBSSS) allows first home buyers to have up to $30,000 of super released if they plan on purchasing a home within 12 months and residing for at least six months,” added Rudgley.
What is important to you?
Rudgley says “It is really important to consider your current lifestyle and the lifestyle you desire before starting your property hunt. A young family may favour an extra bedroom while those really into their health and fitness may have a preference for a home with a high-quality kitchen and its own gym.”
“We are finding that in medium and high-density areas of Sydney that an apartment is not only a more affordable but also practical option. Simple things like not having a huge home to clean and lawn to mow of the weekend are becoming favourable, allowing individuals to instead spend their time having a picnic at a nearby park or in the green common area in most modern apartment developments,” added Rudgley.
What is your budget?
“It is really important to be clear of your budget when searching for your first home and your bank or lending institution will be able to tell you based on your income and deposit amount how much they can loan you,” said Rudgley.
“Shopping around for a home loan that best suits you is worth investing some time in to as a fixed or variable home rate loan depends on your lifestyle. Small variations in interest rates may make a big difference in your monthly repayments. I’d suggest looking into small and independent banks as they often have excellent home loans with lower fees,” added Rudgley.
Rudgley also recommends tracking your monthly expenses and earnings to determine your
budget.
“It is essential when creating this budget that you incorporate your future mortgage and current lifestyle. There may be lifestyle behaviours that you need to cut down on in order to maximise savings as well,” said Rudgley.
Finding home
“Now that you’ve done the hard work getting your finances in order and determining what you
are looking for, the exciting visits to display suites and inspections begins!
We’re finding that first-home buyers are becoming more and more attracted to off-the-plan apartments due to appealing features like seven years building insurance, government grants, stamp duty exemptions as well as the freedom to choose colour schemes, floor layouts etc that are tailored to your preferences,” said Rudgley.
“apartmentdevlopments.com.au even specialises in off-the-plan apartment listings only, so a great website to use if you know that an off-the-plan apartment is what you are searching for,” added Rudgley.
Exchanging a contract
“Many first home buyers consider the process of exchanging a contract to be quite intimidating. However, it is actually a seamless process. A good solicitor will be able to assist you with the legal process and act on your behalf, just make sure you do your homework when it comes to comparing the different services and solicitor fees,” said Rudgley.
Move in!
Rudgley says “The final step in the process after purchasing an off-the-plan property is to go
for a pre-settlement inspection. Following that, you’ll be notified of the settlement once the
building is completed, a Certificate of Occupancy is issued, and the tittles are registers. Then the keys to your first home are all yours!”
The First Home Buyers Guide is available here.
