If you're a first home owner, you've probably already realised that you have plenty of questions. And without the right guidance, building your first home can be an overwhelming process, rather than a fun one! Below, we've compiled a list of the most frequently asked questions among Queensland first home buyers.
What are some things I need to consider about the block I’m interested in purchasing?
Buying a block of land is just as important as choosing the perfect home design, and that’s because there are just as many considerations that need to take place before purchasing the block you’re interested in.
It’s important to consider what legal considerations are involved, such as getting approval from your local council and making sure you can comply with any covenants in the area you’re building as it could restrict certain building materials from being used. You will also need to consider if there are any easements on your property, as that will mean you won’t be able to build any structures that interfere with the easement. Lastly, you will need to check the buildability of your land. We suggest bringing any information relating to your land to one of our display centres so that the sales consultant at Domaine Homes can check to make sure we can build on the land you’re interested in.
Another vital consideration is where the block of land is located. The closer it is to amenities such as shopping centres, primary and high schools, parks, public transport options and local hospitals, the more convenient your life will be, and the more likely the land will provide better returns in the long run if and when you choose to sell.
It’s important to consider the orientation of the block of land you’re interested in. Having a north facing block of land will ensure your home gets plenty of natural light and warmth in the Winter months, while also guarding it from excess heat during the Summer months. As a general rule of thumb, building your home with optimal orientation is not only environmentally friendly, but can help you save a considerable amount on energy bills in the long run!
What is a construction home loan?
If you are building a brand new home, or undertaking major renovations, you will need a construction home loan. This loan has a different structure to other loans that are designed for people to buy already established homes.
For example, if you buy an already established home, you will most likely receive the loan amount in full. However, a construction home loan is received in instalments as different stages of your build are completed. This means that generally you only pay interest on parts of your construction home loan, as opposed to on the whole loan amount.
What is the difference between a fixed and variable home loan?
The main difference between a fixed and variable home loan is that fixed rate financing means that, over the span of your loan, the interest rate does not change. This can be beneficial if you prefer consistency for budgeting purposes. Whereas a variable rate is more flexible and means that the interest rate can go up or down over the life of the loan. Due to the flexibility of a variable loan, you generally have the ability to make extra payments and depending on your bank, make redraws of additional repayments you’ve made above the minimum required repayments.
What is stamp duty and do I need to pay it as a first home buyer?
In Queensland, stamp duty (also known as transfer duty), is a tax that is paid by the purchaser to the Queensland Government when you purchase residential property.
As a first home buyer in Queensland, you may be eligible for one of the Government’s concessions for homes, such as the home, first home, or first home vacant land concession. Depending on your eligibility, these concessions allow first home buyers to pay a reduced rate or in some cases no stamp duty at all. Head to the Queensland Government website for more information on eligibility and how to claim these concessions.
What is the process for applying for a home loan?
In Queensland, you can apply for a home loan via a mortgage broker or sit down with a home lending specialist at your bank. The process for applying for a home loan will differ between banks, however generally, you will need to provide a form of identification, copies of your bank statements for the last three months, a calculation of your current living expenses and any extra information that your bank may require.
The information you provide to your bank will help them determine your borrowing capacity and if you can afford to fund the home loan. If successful, your bank will send you an official letter of offer for your home loan as well as a contract.
If we didn’t answer your question, please feel free to head to our website for more information or visit your nearest display centre and chat to one of our knowledgeable consultants who will be able to help you with whatever you need!