For most people, the transition from carefree teens to adults is often an instant. At that moment, you realize that the things that matter to you are no longer what you used to be, and that your friends will no longer do the childish things they used to do.
You`re no longer the kid who sits at the children`s table every Christmas waiting for a delicious meal, and you don`t count coins just to buy a drink at the bar. You start making your own Christmas dinner and start discussing with your friends where you can afford a house.
Buying a house is a complicated process, you need to digest a lot of information, understand a lot of terms. Fortunately, you can learn a little related knowledge, have the relevant knowledge, the process of buying a house is not as frightening as it seems, and soon you can buy a house boldly.
This article summarizes a pragmatic real estate market beginner`s guide. In this paper, all the considerations of first-time home purchase are outlined, whether it is intended to buy a house for own residence or as a real estate investment for rental, it is worth reading.
One, is the metropolis or the suburbs
"I would like to have a house, surrounded by eucalyptus, and many more." No, wait, let`s get a place to live, near the 86 bus stop. When considering whether to buy a house in the center of the city or in the suburbs, it is important to remember that the location you choose to buy will have an impact on the price of the house.
If you are going to buy a house and live on your own, consider how you want to live your life. Would you like to travel between your home and the city every day? Or would you like to pay more for the luxury of walking to work?
Second, period room or current room
It is very difficult to choose between a prospective house and a current house, because both of them have their own advantages.
The purchase of an apartment or villa in the form of a prospective house means that the apartment or villa is not yet a tangible object, it is only a paper blueprint. On the contrary, buying a current house means that it is a palpable house. You can knock on the wall and look at every corner.
One of the big benefits of buying a prospective house is that you have more time to put everything in order; you need a deposit, but you only need to pay the full balance when the house is completed.
But there is still some risk in choosing a house-for example, the project goes bankrupt before it is completed. Of course, this is not usually the case, but you still have to make a thorough investigation of the project before you pay the down payment.
Buying a current house means that you or your tenant can move in immediately. Of course, early-built houses usually require repairs and maintenance, and in the long run will add to your expenses.
Don`t rush to make a decision, take the time to weigh the pros and cons of each situation, make the best choice for yourself, meet your financial situation, and meet the criteria for choosing your house.
Third, investment or self-housing
Buying an investment house is not a patent for rich people who already own homes and invest in real estate all over the country. Buying investment real estate at an affordable price is a great way to enter the real estate market.
You can buy a house where you can afford it and rent it at the same time as you rent another house. The strategy, known as "rent (rentvesting)," is increasingly popular among young people in their twenties and thirties.
Even so, for many people, the reason they want to buy a house is because they want to live in a house they can call "their own" without landlords and no leases. If this is the case, you may be entitled to a first-time home purchase subsidy, (First Home Owner Grant), to offset the cost of the loan.
First-time home purchase subsidies were introduced around 2000, and the goverment introduced the policy aimed at offsetting taxes on goods and services in its own homes. In recent years, most states have shifted to newly renovated homes and newly built homes, which means that if you want to buy a second-hand home, you may not be able to get a first-time home subsidy.
First-time subsidy policies vary from state to state, and individuals who meet their state eligibility criteria are eligible for first-purchase subsidies, so it is important to read the state`s policy details carefully when you plan to buy a home in that state.
If you are eligible for the first purchase subsidy, you can submit your first purchase subsidy application through a bank or financial institution prior to the loan, or submit your own application after the transaction.
Fourth, only the interest rate or the principal plus the interest rate
There are two main ways to repay home loans: one is to repay interest only; the other is to repay principal plus interest.
Repaying the interest rate only requires you-you`re right-to repay the interest portion of the loan, but you don`t have to pay the principal of the loan. The interest on this payment is higher, but because you don`t have to pay the principal, your repayment is lower in the short term. You can only pay back your loan at an interest rate for a fixed period of time, usually about five years. After five years, you need to repay the principal and interest.
The way you repay principal and interest means you have to pay both interest rates and the principal of bank loans. You need to pay back a lot more than interest only, but your net worth is also increasing, and you will own your house earlier. The two forms of repayment have their own advantages and disadvantages.
V. taxes and charges
These are all large taxes and charges receivable, which, if not prepared in advance, can deduct a lot of money from your savings account. Since there are additional taxes and fees to be paid in the future, you have to consciously set aside a little money to pay for the following three large taxes and charges:
Simply put, the capital gains tax (CGT):) is the taxable portion of the profits you earn from the sale of assets. Interestingly, in real estate, you don`t have to pay a capital gains tax on your main home (that is, your own home), but on idle land, on investment rentals and on leisure farms, you don`t have to pay a capital gains tax. The goods and Services tax (GST):) may not be new to you because in our lives, the tax on goods and Services is almost everywhere. Therefore, it is not surprising that a new property or land should be taxed on goods and services; Read the contract early to see if you also pay a tax on goods and services when you buy a house or land: each state imposes different taxes on goods and services, and tax rules vary for individuals in different situations.
If you are not sure, be sure to ask your real estate agent; in addition, you can use the Australian Inland Revenue Authority`s real estate goods and services tax utility, (GST property tool), to get more useful information to help you make decisions.
Land tax: you don`t have to pay a land tax if it`s for your own house; if you own an investment home on a piece of land, you may have to pay a land tax. Land taxes are payable in cases of idle land, land with properties (villas or apartments), industrial houses, garages and commercial properties.
The policy details vary from state to state, so be sure to go to the state where you want to buy a house on the state goverment website to see if you`re buying a house that meets the state`s standards. You will need to submit your land tax application by March 31 of each fiscal year, and the local goverment will contact you and inform you of the amount of the land tax you are due to pay.
VI. Negative tax deduction policy
Negative tax deduction policy is a tax reduction policy for investment real estate owners. In short, if your investment income (that is, the rent your tenant pays you) is less than the amount you use to repay your loan and maintain your house, then you are entitled to tax deductions and pay taxes at a lower personal tax level.
Seven, one-time goverment charges
In Australia, there are several other expenses to be paid in advance when buying a house. You need to pay stamp duty, another form of tax levied on home buyers by states and territories in Australia.
Still, the amount you have to pay depends on where you bought the house. You need to pay the stamp duty in full. Specific tax hours are specified in each state, depending on which state you bought the house in.
You will also pay for the registration of land ownership, which is the cost of an official registration of individual land ownership, which varies from state to state and from territory to territory. Are you going to buy a house in New South Wales or Victoria? First-time home buyers in the two states are eligible for stamp duty concessions.
VIII. Transfer of property rights
The transfer fee of property right is actually the general name of all kinds of related legal expenses of buying a house. While you can handle all these legal procedures yourself, most people prefer to hire a transfer handler or lawyer, because the cumbersome terms are still a headache. The transfer manager or lawyer will review the contract, draft the land transfer agreement (if you need it), and transfer ownership of the real estate to you.
IX. Housing inspection
At this point, although you may already feel that your wallet is bleeding, you should not be stingy, should spend the money still have to spend, before buying a house to schedule a time to check the room. In a house inspection, you can not only find any structural defects in the house, but also budget future maintenance costs based on the situation of the house, and see if unsafe corners of the house can lead to a lack of immediate accommodation.
Ten, don`t forget to pay the property management fee.
If the apartment you want to buy is in an apartment-filled neighborhood or apartment area, in addition to paying city fees, you will probably have to pay the property management fee "body corporate fees" on a quarterly basis.
Some people would call property management fees "strata fees," which is the same thing. This different way of calling is confusing at first, but when it comes to understanding what is going on, it becomes much clearer.
Property management fees vary from location to location, but they usually include maintenance and maintenance of common areas such as swimming pools and gyms, as well as maintenance and maintenance of public areas such as gardens and parking lots. Of course, housing insurance is also included.
Take a closer look at the property management fees in the area you plan to buy so you can know ahead of time whether you need to pay for a high-end configuration such as an elevator or a 24-hour doorman.
That`s all you need to pay for your new home purchase. Once you know what fees you need to pay, you can better budget and spend your savings, so you don`t have to be stressed out by the cumbersome terms of the deal to live the life you want most in your new house.
