Diane

Great news for SA Home Buyers

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    Yeah and somewhere decent to build for a reasonable price. Seaford Meadows is but it's halfway to Melbourne and there's naff all to do there but I suppose that's why it's affordable lol.

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    Guest NewInOz

    Hello Scooterdan, Why would you need to borrow 100% when you can get $8,500 from the government for buying a new house, and if you are a first home buyer you would get $7,000 first home owners grant, plus a further $8,000 first home owners Bonus Grant giving $23,500 altogether.

     

    If you don't own your own home, which I assume from your comment that you don't, certain lenders will take the rent you have been paying (if you are paying rent) into account as "genuine savings" as if you buy a property then you won't have to continue to pay rent.

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    Guest vikkiann

    Does anyone know .... Do you get the grant on completion or can you use it towards your deposit?

     

    We are going to take the building option if we can find a plot of land big enough for a decent price

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    Guest NewInOz

    Seaford has been tipped as somewhere to buy as the potential for price increases in the area has to be pretty considerable given the second expressway being built and the railway extension. I saw prices in a borough in south east London double in 12 months when a new underground station was built in Lewisham. I am not saying house prices in Seaford are going to double but if I were a gambling man, which I am not, I would bet that the prices increase above average over the next year or more.

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    ... good news for anyone thinking of buying their first house.

     

    It's probably worth pointing out that it's not just for first home buyers but anyone buying a new build. Unfortunately, iit could have knock-on effects for established property sales as incentives for these get cut.

     

    Jim

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    Okay, I have a question. The $8500 for building a new house only applies to houses worth less than $400,000 and then reduces until the house is worth $450,000 and after that you get nothing. How is it decided how much the house is worth? Is this the cost of the build, and if so does it include the land? Would it also include the cost of all the landscaping and extras, or is it just the house?

     

    We're buildig a house but with the cost of the land and the house we will have spent over the $450,000 limit so am I right in thinking we won't get anything? It seems like quite a low limit for building a new house, although maybe I'm wrong.

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    Guest NewInOz

    There are building companies out there who will let you buy a plot of land and build with a deposit as low as $5,000. I think it likely that some will allow the increased grants to be taken into account somehow. After all, the idea of the grant is to increase new home building and sales. Why not ask Statesman Homes who run such schemes? They have a new development and show houses in Seaford. They have a big advertising hoarding at the left hand side of the road as you go up the fill from Moana, that says "buy a new home with $5,000" or words to that effect at least.

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    I was under the impression that the grants all arrived after the home buying/building was settled! Are we actually able to use these grants as deposits?!? We can afford mortgage repayments but are not very good at saving!!!

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    Okay, I have a question. The $8500 for building a new house only applies to houses worth less than $400,000 and then reduces until the house is worth $450,000 and after that you get nothing. How is it decided how much the house is worth? Is this the cost of the build, and if so does it include the land? Would it also include the cost of all the landscaping and extras, or is it just the house?

     

     

    We're buildig a house but with the cost of the land and the house we will have spent over the $450,000 limit so am I right in thinking we won't get anything? It seems like quite a low limit for building a new house, although maybe I'm wrong.

     

    Hi Nic

     

    Generally it is the price of the land and the value of the building contract that is taken into account, therefore if the land was $200k and the build contract $300k then total value would be $500k.

     

     

    Does anyone know .... Do you get the grant on completion or can you use it towards your deposit?

     

    We are going to take the building option if we can find a plot of land big enough for a decent price

     

     

    Hi Vikkiann

     

    Grants are paid on construction not on land settlement.

     

    Therefore generally funds are required for the deposit on the land and the costs to buy i.e stamp duty, particularly if you do not go with a land and build package and instead buy the land first and then source the builder.

     

    However it may be possible for some lenders to finance some upfront knowing the grants are coming in.

     

     

    I was under the impression that the grants all arrived after the home buying/building was settled! Are we actually able to use these grants as deposits?!? We can afford mortgage repayments but are not very good at saving!!!

     

     

    You are right Dan, they do, grants are paid at construction stage not at land settlement.

     

     

    Generally the Banks are still going to want to see the deposit in the Bank to settle on the land.

     

    However it may have been possible to have some of the funds advanced in some cases (based on previous grants) but it could be difficult to pass the Banks credit score with no savings in place at all. As always with these things it would have to be looked at on a case by case basis.

     

     

     

     

    Regards

     

     

    Andy

    Edited by Andrew from Vista Financial

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    Thanks for this NewinOz.

    We are busy changing mortgage lenders at the moment and we are so impressed by the information and help that you have given us. We thought that we had things well structured but it wasn't the case. As a result of the assistance from NewinOz our savings are S1700 per month!

     

    Can't believe that it's a free service too!! Top bloke...totally recommend that people contact him.

     

    My sons are really interested in getting their first property and what we thought was out of reach for them is actually possible thanks to the information that you have given us.

     

    Anyone wanting to buy their first home, move or refinance should really be taking adavantage of this type of service...costs nothing and you will be shocked at what is possibe when you get sound advice from people in the know.

     

    Tamara

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    We are the same as scooterdan. We can afford the repayments just not the saving part. Never been able to save and we would love to be able to buy our own home and not rent anymore. If anyone can help make this happen then brilliant :))

    Edited by sharons dream

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    you still need a deposit on this? i have enquired with statesman before coz thay said $5000 can get you a house, but in the end i still need to find deposit ...how this $23000 can be put as deposit? or in the case of if im paying rent can be put into as genuine savings? pls explain...its hard to get the deposit as it is and apparently this is only until june 2013...dont wanna loose out on this.

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    SI saw prices in a borough in south east London double in 12 months when a new underground station was built in Lewisham.

    Lewisham Station is on the Docklands Light Railway so isn't an Underground station as such.

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