What Do You Need To Know About The First Home Owners Grant Changes?

Until 1 January 2010 the cost of your first home did not effect your eligibility for the First Home Buyer Grant. The state government has now introduced a maximum price cap. The cap limits the total value of properties (i.e. total value of home and land) to $750,000.00 or less, or if the home is located north of the 26th parallel to $1,000,000 or less.

When EXACTLY Does (Did) it Start?

The First Home Owner Grant cap applies to all eligible transactions in W.A. that are made on or after 1 January 2010. That date is determined as follows:
* for Established, New Home and Off the Plan – the date when the contract is made; and
* for Contract to Build – the date when the building contract is made; and
* for Owner Builder – the date when laying the foundations for the home begins.

How Do They Calculate a Properties Value?

The total value of a transaction can be determined by:
* Established, New Home or Off the Plan - the higher out of the contract price, or the unencumbered value.
* Contract to Build – the total of the contract to build, and the unencumbered value of the land.
* Owner Builder – the unencumbered total value of the home and land, at the date the transaction is completed

PS Remember this information is a guide only and you should contact a First Home Buyer expert to discuss your specific details. The Aussie Mortgage Advisers in Joondalup are trained in this area. Call them for more information during normal business hours on (08) 9300 0686

If you enjoyed this post or found it useful, please consider posting a comment or 'Sharing' it using the button on the top left of the page.
0403 144 822
(08) 9300 0686
michael.cormack@aussie.com.au
Mike Cormack
Aussie Home Loans Joondalup

Why Invest In Property?

This is the first post in a series of 6 all about buying an investment property. Topics covered will be:

• Why Invest In Property?
• The Return On Your Investment
• Choosing an Investment Property
• Choosing an Investment Loan
• Tax and Your Investment
• Managing Your Asset

Check back soon for part 2. I hope you will find them informative.

Why invest in property? The big difference between property and any other type of investment is that you can actually touch it. It’s bricks and mortar, not just numbers on a screen.

It’s also considered one of the more solid, less volatile forms of investment. Investors tend to like property for its:

• Potential capital growth (increase in value).
• Ongoing rental return.
• Tax benefits.

You don't need a big salary to get started. Lenders consider the potential rental income you’ll get from the property when calculating how much you can borrow. So property is a viable investment option for first time property buyers as well as existing property owners.

If you already own your own home, and have a reasonable amount of equity in it, you mightn’t need to raise any cash to start investing. Many lenders will let you use that equity as a deposit for the investment property.

But if you don’t already own a property don’t be put off. If you have a deposit saved, an investment might be a good way to get into the property market. While you won’t get all the grants and concessions that come with buying a home, you don’t have to wait till you can afford somewhere that suits your needs. You can buy something that might make you some money instead.

If you enjoyed this post or found it useful, please consider posting a comment or 'Sharing' it using the button on the top left of the page.
0403 144 822
(08) 9300 0686
michael.cormack@aussie.com.au
Mike Cormack
Aussie Home Loans Joondalup