Page 43 - Smart Money

Smart Money

need; but it’s better to overestimate and receive a bonus at the end than
to underestimate and have to come up with money that you don’t have.

If you are trying to figure out how much you need to save, it’s around
7% of the purchase price in total. That is for first home buyers. There
are different regulations in each state. In Western Australia, there is no
stamp duty as long as you purchase a property under $430,000. Between
$430,000 and $530,000 there is a pro-rata rate. If you are purchasing
vacant land, the vacant land purchase price needs to be $300,000 or less
to avoid stamp duty.

If your state doesn’t have stamp duty concessions, you are going to have
to save the 5% deposit plus stamp duty, or 7% plus stamp duty, which
varies from state to state. We always work on about 10%, being 5% for
fees and 5% for the deposit. So on a $400,000 property; you need about
$40,000, worst case scenario.

The most important thing is to speak to a professional first to see
what is relevant in your state or territory.

In Western Australia, we have a state government incentive called Keystart,
and they are funded by the state government. They are not a bank. They
only require a 2% deposit. There is no lender’s mortgage insurance, but
there are other things that go with that, as well. Of your 2% deposit,
1% needs to come from genuine savings over a three-month period. The
other 1% can come from anywhere. The fees are normally about $1,500
just for the bank, and then you need to have your settlement agent fees on
top of that as well. There is no mortgage insurance payable.

Once you’ve got your finances in order, we email you a template of all
the things that we require before you come to the actual appointment.

These include:

$ a colour copy of your driver’s licence, back and front
$ a passport or birth certificate

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