First home buyers | MJLegal
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First home buyer

First Home Buyers

Buying your first home is not just a process; it is a significant milestone filled with excitement and many unknowns. At our law firm, we understand the thrill of this journey and the legal complexities involved.

Our experienced conveyancing lawyers are here to guide you through every step, ensuring a smooth and stress-free experience. From reviewing contracts to finalizing the transfer of ownership, we provide comprehensive support to help you navigate the legal landscape and make your dream of homeownership in Melbourne a reality.

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Making Your Dream of Homeownership a Reality

We guide you through the legal intricacies of buying your first home, ensuring a smooth and stress-free process. With our expertise, we have assisted first-time home buyers in achieving their dream of owning a home in Victoria.

Buying Your First Home with Us

If you are purchasing your first home with us, we will take you through the following steps 

Step 1: Initial Consultation

Your journey to homeownership begins with a personalized consultation.

During our initial consultation, we will discuss your home-buying goals and assess your unique situation.

Step 2: Contract Review and Negotiation

Ensure your interests are protected with a thorough contract review.

Once you’ve found a property, we will meticulously review the contract of sale and the Section 32 statement. 

Step 3: Handling Stamp Duty and Financials

Navigate the financial complexities with expert guidance.

Our team will assist you in applying for any available stamp duty concessions and grants, such as the First Home Owner Grant (FHOG) and the Principal Place of Residence (PPR) concession. 

Step 4: Settlement and Transfer of Ownership

Finalize your home purchase with a smooth settlement process.

As settlement day approaches, we will coordinate all necessary steps to ensure a seamless transfer of ownership. This includes liaising with your lender, conducting final checks, and preparing all required documentation. 

Start Your Dream Home Purchase with MJ Legal Today!

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Financial Considerations for First Home Buyers

When calculating the cost of purchasing your first home, it's important to consider more than just the purchase price. Here are key expenses to account for:

  • Hiring a conveyancer or solicitor is essential for managing the legal aspects of your property purchase. Their fees typically cover contract reviews, property searches, and the settlement process.
  • Stamp duty is a significant expense and varies by state. Be sure to check if you are eligible for any first home buyer concessions or exemptions.
  • Adjustments for council rates, water, and other utilities may be required at settlement. This means you’ll need to pay your share of these costs from the date of purchase.
  • It's crucial to have the property inspected to identify any potential issues. These inspections come with their own fees.
  • Plan for the costs of moving your belongings and setting up utilities in your new home.

Understanding the First Home Owner Grant (FHOG)

A $10,000 First Home Owner Grant (FHOG) is available for those buying or building their first new home. Eligible homes include houses, townhouses, apartments, units, or similar types. A new home can be one that has been substantially renovated or built to replace demolished premises but does not include investment properties or holiday houses.

To qualify, the contract price for the home must be $750,000 or less. For off-the-plan purchases, it is the contract price, not the dutiable value, that must be $750,000 or less. When signing a contract to build a home, the contract to build price must also be $750,000 or less.

A new home is defined as one that has not been sold previously as a place of residence or occupied as a home, including short-term accommodation like Airbnb. Therefore, the first sale of a property will not qualify as a new home if the builder has lived in it, leased it out, or used it for short-term accommodation.

The FHOG may be available in addition to other exemptions or concessions for eligible home buyers, including pensioners.

The timing of your FHOG payment depends on the contract you sign to buy or build your new home and whether you lodge your application with an approved agent or directly with the relevant authority.

Duty Exemption and Concession for First Home Buyers

If you are purchasing your first home with a contract date on or after July 1, 2017, you might qualify for a duty exemption or reduction. For contracts dated before July 1, 2017, a 50% reduction in duty may be available.

First home buyers in Victoria can benefit from both the duty exemption and the 50% reduction when buying a new or existing property with a dutiable value up to $600,000. If the dutiable value is between $600,000 and $750,000, a duty concession is applicable. Additionally, buying vacant land with the intention to build your home may also qualify for these benefits.

Meeting the eligibility criteria for the First Home Owner Grant (FHOG) allows you to access these duty benefits, even if you do not receive the FHOG itself—such as when purchasing an existing home, which is not eligible for the FHOG. However, if you or your partner have previously received these duty benefits, you will not be eligible again.

Typically, your conveyancer or solicitor will handle the application for the exemption, concession, or reduction when they complete the Digital Duties Form during the electronic conveyancing process.

How can we help 

 

Equipped with years of experience, our property lawyers at MJ Legal are experts at conveyancing.  

Our service to you is provided using a high degree of technology that is seamlessly integrated with the human touch.  

We believe in educating our clients about the legal process and taking the home buying journey with you. We will advise you on all the steps that need to be taken so that no extra burden is placed on you as you embark on this milestone in your life.  

Our lawyers will work with your mortgage broker or bank to assist you in managing your finance approval process, reducing the time you spend navigating between the two professionals to have your property settled.  

 

FAQs on first home buying

  • A Conveyancing transaction has many different parties to it. Parties common to most transactions are - The Vendor, Purchaser, Real estate agent, the State revenue office and the bank. 

  • You need a good conveyancer to transact with all these different parties at minimal inconvenience to you. 

  • Moreover, your conveyancer can assist in any negotiations such as extending settlement dates, helping you to obtain extensions to your finance due date. 

  • Lastly, your conveyancer will ensure that the title of the property or asset you purchase is transferred to or from your name legally. 

  • Please visit our conveyancing cost calculator