Buying First Property In a Housing Estate

5) Page 1 of the following document says of the First Home Owner Grant: "The grant applies to residential dwellings only and does not apply to vacant land."  http://www.osr.nsw.gov.au/lib/doc/factsheets/fs_fhb1.pdf  Have a read of the "First Home Plus" scheme on page 2 which talk about alternative assistance you can get for vacant land.  Basically it says that you'd pay no stamp duty on vacant land up to the value of $300k, or you'd receive concessions on stamp duty on land valued between $300k and $450k. (Page 3 shows how to calculate these concessions.)  Reading between the lines, it looks like the provisor would be that within 12 months, you'd need to have constructed  the home in a sufficiently timely manner to allow you to reside in the home for 6 months (within the afore-mentioned 12 months).  This is unclear in the document – you'd call to clarify.

7) I would ask which estates they've built nearby, and ask for specific addresses.  Do a lot of drivebys to see what you think of the exteriors, and even knock on a few doors – compliment people on their lovely homes and ask them if they care to comment on their experiences with the builder (ie if they would recommend them or not).  I did exactly this.

When applying for the loan – I think you'll find that the fact your parents are prepared to pitch in $1000 a month won't be included in the equation.  The only way to factor that in might be for them to be guarantors of the loan which they might not wish to do, as it can put there current residence at risk if you default on your payments.

I think you will find that the bank wants you to pitch in 10% deposit.  So on the land alone, that means $25k.  You'll then need a thousand or two for solicitors & conveyencors.

Yes. Better in my opinion to do IO from day 1 if you plan to make it into an IP in the future. Park any excess cash into an offset account that you can use later for your PPOR purchase or another IP.

  NO, not in my opinion. Limited capital growth for the first few years and if the market tanks at any stage you can have real difficulty selling your place when the builder is selling cheaper new than your second-hand one. Better to be in established suburb.

I doubt these figures. You might get 5% – maybe.

Buying first blocks in a new estate you won't get a discount as this will set a benchmark for valuers valuing other blocks. The last few blocks left though are often sold cheaper.

  Reputation and build quality. Ask previous clients. Also make sure there is a liquidated damages clause in the contract for over-runs on construction time.