Hello everyone
Back when the First Home Owners Grant (FHOG) was only $7000, many first home buyers would put it towards the latest flat screen
plasma. Now that the Government has added an additional First Home Owners Boost (FHOB) of $7000 (and even $14,000 for brand
new homes) it is time to put down the remote!
There are many ways first home owners can put the extra funds to good use - so that when the pixels on the plasma have faded, the value
on their home investment won’t have.
Here’s five top tips for making the most of your FHOG.
Location, location, location!
If you are tossing up between a centrally located ‘Renovators Delight’ or a ‘Liveable Homestead’ further out, opt for the former and put
your $14,000 toward renovation. It requires some patience and possibly living in mess for a while, but in the long run you’ll own your
very own ‘Liveable Delight’ in a great location!
Dive into the market sooner.
If you put the increased FHOG and additional FHOB toward boosting your deposit, you could be in the property market game sooner
than expected! Take advantage of currently reduced prices in the market and find yourself a dream home today!
Splurge on a luxury.
If you are purchasing a brand new home, consider putting your $21,000 toward a luxury aspect that will add value to your home in the
long run. Or perhaps it could help you afford a slightly bigger home to accommodate a growing family later on.
Turn the unexpected into the expected.
Many first home owners jump into purchasing property only to uncover many hidden costs. Use your FHOG and additional FHOB as a
‘slush fund’ for unexpected costs like inspection reports and mortgage insurance. That way, you won’t be stung by unexpected costs that
blow your original budget wide open.
Split the difference
If you have a split loan, is the fixed interest rate higher than the variable rate, or vice versa? Use the FHOG or additional FHOB to
reduce the balance on whichever portion of your ho loan is incurring the higher rate of interest. This will save you money in the long
term as the higher of your two rates will apply to a reduced balance.
VeraKingRealty
We will never let you down