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As a First Home Buyer how can I take advantage of QLD's home owners grant?

Discussion in 'General Property Chat' started by Kris, 21st Sep, 2016.

  1. Kris

    Kris New Member

    21st Sep, 2016
    Newbie to the property world here. I am a single 26 year old wanting to get my foot in the property door and it's fair to say that my knowledge in this area is very limited in terms of where and how to start the process. I am wanting to take advantage of QLD's First Home Owner's grant valued at $20,000 while it lasts, and I am aware that I must be either buying/building a brand new home. I have been considering areas such as North Brisbane, Gold Coast area with a budget of no more than 500k. Is there a 'comfortable' deposit amount that I should aim for? Is it possible to invest in property on a single income? Also what tips do you have up your sleeve? Do you know of any property developers who are rockstars for first home owners? Any help on this would be greatly appreciated!
  2. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

    9th Jul, 2015
    You can start at a minimum of 5% but 12% is the happy medium as it keeps the LMI premium down as it exponentially increases as you approach 95% LVR. 20% deposit you will avoid LMI (lenders mortgage insurance) and probably get a better deal rate wise. Really depends on your short, medium and longer term goals what approach you take.

    First step is to seek out a broker to determine borrowing capacity and finance strategy inline with your goals. There are a few on here to choose from.

    It may pay to speak with a BA (buyers agent) as they will represent you as opposed to a developer who will represent profit margins :). A BA should be able to guide you into a property that has good potential for capital growth and also in high demand as a rental property if you convert to an investment later.
  3. Foxdan

    Foxdan Well-Known Member

    22nd Jun, 2015
    Hills district, sydney
    1. Find a broker off the forum so you can learn what you can borrow but more importantly, how to structure your loans for the future
    2. Spend 3 months reading every thread on here til you learn enough to develop a strategy.
    3. Post all your unanswered questions up to help you learn.
    4. Remember that the first home owners grant is only useful if you don't overpay 20k to buy a shiny new building. You might be able to buy something elsewhere without the grant and get more than 20k in equity instantly and better growth prospects. Think long term, not short term.

    Good luck with your investing