First home buyers get a real boost

FHSS Scheme – first things first

Deciding to buy your first home is really exciting. There are so many decisions to make about where you want to live, what sort of home you’d like to buy and of course, how you’re going to afford it all.

To start, it’s important to work out how much you’ll need for your deposit in the first place, so you’ll have to do the maths.

  • Work out how much you need to buy the property you’re interested in – don’t forget to factor in all related fees and charges including things like stamp duty and conveyancing fees
  • Take away the amount you can afford to borrow
  • Equals the deposit you’ll need to save.

It all sounds pretty straightforward, but saving the deposit for your first home isn’t as easy as a simple equation. It can be much harder.
 
Some people try to boost their savings by taking a second job, selling things they no longer want or need or even starting a side hustle.
 
Many more move back in with their parents to save on rent and other expenses and others budget around the clock so they can sign their very own Contract of Sale sooner rather than later.
 
That’s why the Australian Government’s first home super saver scheme (FHSS) is such a great idea.
 
This initiative lets you make extra contributions to your superannuation and use those funds to buy your first home sooner. By contributing to your superannuation, you can save on the amount of tax you need to pay annually, which is extra money you could be putting into your deposit.
 
Anyone earning more than $18,200 per year can save on tax while being part of this scheme.

Are you eligible?

To access this scheme:

  • You must be 18 or older
  • You cannot have accessed this scheme in the past
  • You must not have owned property in Australia before.
 

Like any service, different businesses and individuals charge various fees to get the job done.

  • You live in the premises you are buying, or intend to as soon as practicable
  • You intend to live in the property for at least six months, within the first 12 months you own it, after it’s practical to move in.
 
Only voluntary contribution funds can be accessed as part of this scheme and withdrawals are currently limited to:
  • $15,000 per financial year
  • $30,000 in total.
 
Although the FHSS scheme might not be the most straightforward way to save for a house, it can help you save at tax time and boost your deposit.
 
Your accountant would probably argue that right now, this is the most tax effective way of saving for a home deposit.
 
If you’d like more information about the FHSS scheme, visit the Australian Tax Office website here for everything you need to know.

How is my conveyancing fee calculated?

There are two parts that make up your Settle Easy conveyancing fee:

  • Professional services
  • Disbursements or out of pocket expenses

Professional Services Fee

You might be interested to know that this part of your conveyancing fee pays for the specialised work your property law expert will need to do to legally transfer your property.

As you would expect, transferring a property to a new owner requires:

  • Property law expertise
  • Time
  • Excellent attention to detail.
 
At Settle Easy, your expert conveyancers have all the skills and experience necessary to ensure all your paperwork is ready to go from pre-contract right up until settlement day.
 
They’ll also be in regular contact with you and the other party’s legal representatives to nut out all the finer details of this important transaction.
 
Some people embark on the conveyancing process themselves, but unless you are a property law expert, it’s not something we recommend – there’s just too much at stake when it comes to property transactions.

What are disbursements/out of pocket expenses?

When it comes to conveyancing, the word disbursements and the expression ‘out of pocket expenses’ are used interchangeably by real estate agents, property lawyers, solicitors and conveyancers, but in reality, they are the same thing.

Whether you are escaping to the mountains or investing in an inner city apartment, every property transaction in Australia will incur some sort of out of pocket expenses – it’s just part and parcel of all conveyancing transactions.

It’s important to know that these out of pocket expenses are not covered by Settle Easy’s professional fee.

When we help you with your conveyancing, our conveyancers and property lawyers will undertake various searches to get your conveyancing transaction sorted.

At Settle Easy, our expert local conveyancers and lawyers can provide you with an estimate of what these out of pocket expenses are likely to be for your property, just as soon as we know where your property is located and what sort of property it is.

We can only provide an estimate of these costs because every local council and government body in Australia has different fee schedules for these searches and your out of pocket expenses ultimately depend on where your property is located.

Your out of pocket expenses may pay for things like:

  • council and water rates searches
  • planning and heritage searches
  • title and encumbrance searches
  • water meter readings
  • road authority certificates
  • land tax clearance certificates
  • Environment Protection Authority (EPA) certificates
  • owner’s corporation/body corporate/strata title certificates.

Questions about conveyancing fees?

If you have any questions about how we calculate conveyancing costs or if there is any other conveyancing-related question you need answered, we’re here to help 24/7.

We can’t wait to help you settle easy.

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