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Did you know that the new First Home Owner Grants make it possible for you to buy your own home with LITTLE or NO DEPOSIT. You MUST ACT QUICKLY because the amazing opportunity ends on 30TH JUNE 2009. Welcome to Low Deposit Homes! Did you know that the new Federal Government "Home Buyer Boost" introduced on the 14th of October 2008 makes it possible for you to buy your own home with little or no deposit. I know this sounds to good to be true, but it's NOT! There's NO TRICKS, NO CATCHES, and THIS IS NOT A SCAM! This is all possible using traditional finance from any of the main stream banks on a specific selection of homes in Ballarat and Ararat. FACT - Every home featured on this web site can be purchased with no deposit! |
The First Home Owner Grant - how much can you get? Regional purchasers (those in Ballarat and Ararat) can access up to $29,000 in government grants on a new home and $17,000 in government grants on an existing home. See the following table for a breakdown of the available grants: Contract Date | Conditions | First Home Owner Grant | New First Home Owner Boost | First Home Bonus # | First Home Owner
Regional Bonus # | From 14 October 2008 to 30 June 2009
| Established homes only | $7,000 | $7,000 | $3,000 | $0.00 | | Newly constructed homes in Metropolitan Victoria only | $7,000 | $14,000 | $5,000 | $0.00 | | Newly constructed homes in Regional Victoria only | $7,000 | $14,000 | $5,000 | $3,000 |
* The information has been taken from the Prime Minister’s Media Release dated 14 Oct 2008 and is subject to formal approval. * The information provided in the above table is to be used as a guide only. * To be eligible to receive the Bonus and Regional Bonus, the value of the property must not exceed $500,000. FACT - Regional First Home Buyers can access $29,000 in Grants on NEW homes! |
FACT - Regional First Home Buyers can access $17,000 in Grants on EXISTING homes! |
Understanding the costs associated with buying a home? There are a number of significant costs associated with buying a new home apart from the price you pay for the property. The following costs are associated with buying a home... Purchase Price | This is the amount you agree to pay for the property. | Government Fees | These include stamp duty on the land, stamp duty on the mortgage, registration of the transfer of land, registration of the mortgage, etc. | Legal Costs | These are costs to have a solicitor or conveyancer assist and represent you in the process of buying a home. Although this is not mandatory, it is highly recommended. | Finance Fees | These are the fees your bank or broker will charge you to establish a loan for the property. | Mortgage Insurance | Mortgage Insurance is a fee your financier will charge you if your loan to value ratio is greater than 80%. It is a fee that protects the bank in the event you default on your loan. |
Example One - Buying a New property off the plan The following table shows you the costs associated with buying a new 2br townhouse off the plan for $195,000. The main advantages of buying off the plan are that you can choose your own colours and also that the government fees payable are significantly reduced. See the next section for more information. Purchase Price | $195,000 | + Government Fees | $1,522 | + Legal Costs | $660 | + Finance Fees | $600 | Total Costs | $197,782 | - First Home Owner Grants | $29,000 | Total Cash Required | $168,782 | + Mortgage Insurance (< 80% LVR) | $1,198 | Amount Required from a Bank | $169,980 |
Example Two - Buying an Existing property The following table shows you the costs associated with buying an existing 1br dwelling for $135,000. Purchase Price | $135,000 | + Government Fees | $3,768 | + Legal Costs | $660 | + Finance Fees | $600 | Total Costs | $140,028 | - First Home Owner Grants | $17,000 | Finance Required | $123,028 | + Mortgage Insurance (< 80% LVR) | $1,164 | Amount Required from a Bank | $124,192 |
How you can save $1,000's in stamp duty? Stamp Duty is the main Goverment Fee associated with the purchase of your property. The amount of Stamp Duty payable is calculated based on the value of the property at the time of signing your contract. Therefore the earlier you buy a property that is under construction, the more Stamp Duty you will save. We will illustrate by providing a simple example. Example - There is a two bedroom property available for sale for $195,000. Construction has not yet started. Scenario 1 - You buy the property "Off The Plan" or prior to construction. The current value is $55,000. Stamp Duty payable would be $950 and the total Government Fees would be $1,389.20. Scenario 2 - You buy the property at "Lock Up" stage (the dwelling has a slab, frame and roof). The current value is $120,000. Stamp Duty payable would be $2630 and the total Government Fees would be $3,242.20 You buy the property when it is "Completed". The current value is $195,000. Stamp Duty payable would be $6,120 and total Government Fees would be $6,916.20 In summary, it is possible to same over $5,500 off a 2br townhouse by buying the property off the plan as opposed to when it is completed. FACT - You can save many $1,000's by buying off the plan and reducing stamp duty! |
How much will the bank give you? At the time of writing the majority of banks will lend up to 95% of the Loan to Value Ratio (LVR). For loans over 80% LVR mortgage insurance will be required, however this can usually be added on top of the loan. The Loan to Value Ratio (or LVR as it is commonly known) is the loan amount (Finance Required) in relation to the value of the property (usually the Purchase Price). You can calculate it by dividing the loan amount (Finance required) by the value of the property (Purchase Price). In Example 1 above, the Total Cash Required is $168,782 and the value of the property (Purchase Price) is $195,000. The LVR in this case would be 86.5%. Because 86.5% is less than 95%, the bank will lend you all of the Total Cash Required + the Mortgage Insurance totalling $169,980. You would therefore be able to purchase the property without needing a deposit. In Example 2 above, the Total Cash Required is $123,028 and the value of the property (Purchase Price) is $135,000. The LVR in this case would be 91.1%. Because 91.1% is lower than 95%, the bank will lend you all of the Total cash required + the Mortgage Insurance totalling $124,192. You would therefore be able to purchase the property without needing a deposit. FACT - The majority of banks will still lend up to 95% of the value of a property! |
How much will your repayments be? The great news is in the majority of cases your loan repayments will only be marginally higher then what you would pay in rent for the same property and in some rare cases your repayments will be cheaper than what it would cost to rent the property. With interest rates rapidly decreasing and rents increasing, there will possibly be no better time to buy your own home. In Example 1, the weekly repayments would be $240 on the loan of $169,980. The weekly rent payments on the same unit would be $210. Therefore without needing any money and for only $30 per week in addition to what you would pay in rent you could buy this home instead of rent. In Example 2, the weekly repayments would be $173 on the loan of $124,192. The weekly rent payments on the same unit would be $175. Therefore the weekly repayments are less than the weekly rent on the same property. So without needing any money to purchase the property you would save $2 per week by owning the property rather than renting. FACT: There are a small number of properties available to purchase with no deposit where the weekly repayments are less than weekly rent on the same property! |
What do you do next? Determine how much you can afford to pay in weekly repayments and browse our site for a property that matches your requirements. Every property on this website features the following table which will allow you to easily identify how much the property will cost you in repayments based on what size deposit you have. You can view homes by Trobecca Homes or ElJumi Quality New and Renovated Homes. All properties for sale can be purchased with no deposit and repayments not much more than it would cost to rent! Deposit | Loan | Repayment | Diff. to Rent |
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$0 | $169,000 | $252 | +$32 | $10,000 | | $222 | +$12 | $20,000 | $149,000 | $202 | -$8 |
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