New to the first home buyer’s market? Here’s a glossary to get you started!

Are you getting ready to buy your first home? Capricorn Beach in Yanchep is a stunning beachside community with house and land packages for sale for all budgets and lifestyles. Before you can get your days started with sand between your toes and a dip in the ocean, you’ll want to get your head around all the terminology of the buyer’s market.

 

What’s the difference between Section 32, the FHOG and Stamp Duty? Don’t sweat: we’ve written up a handy glossary to help you on your way. You’ll be signing the papers and stepping across the doorstep of your dream home in no time!

 

Appraisal

Property evaluations which calculate the market worth of land or a house at the time of assessment. These are often offered for free by real estate agents. They’ll look at things like location, property size, design and amenities.

 

Conveyancer

Legal professionals who are experts in property transactions and affairs. If you need legal documents checked over, you can give a conveyancer a ring.

 

Borrowing capacity

The amount of money a bank will lend you when you’re applying for a loan. They’ll take into account factors such as your earning potential, your household spending, your savings and whether you’re buying solo or in a couple.

 

First Home Owner Grant (FHOG)

This is something you’ll definitely want to get your head around if you’re buying your first home. State governments have been offering the FHOG since 2000 to help first-time buyers get their foot in the door of the property market. It’s a one-time payment that can go towards your deposit.

 

The WA government is offering $10,000 (or the consideration paid to buy or build the house if less than that amount) if you’re eligible for the FHOG. For more information about your eligibility, take a look at this information page.

 

Capricorn Beach are also excited to share that we are currently offering a $10,000 grant for our Premium lots. Combining this with the FHOG, there’s never been a more affordable time to start your home-owner journey.

 

Stamp duty

Don’t forget to check if you’re eligible for a concessional first home owner rate of duty, too! This is the government tax on property transactions, and first home buyers often qualify for a discounted rate.

 

Section 32

A seller provides you with a Section 32 document, which contains essential information about the property. This will include documents like

  • Recent building permits
  • Fees such as strata and council rates
  • Zoning certificates

 

House and land package

Our friendly Yanchep office can provide you with information about house and land packages, where you buy new land and the construction of your house on it in one transaction.

 

Contract of sale

The document which legally affirms the sale of property between a buyer and a seller, including details such as the settlement information, sale price, deposit amount and conditions of sale.

 

Fixed-rate home loan

A home loan offered by a bank where the terms of your interest rates do not change over an agreed-upon period. This can help you avoid volatile markets and give you a sense of stability and peace of mind, but you may also lose out if interest rates drop.

 

Variable-rate home loan

These home loans are potentially risky as you do not get the long-term capped interest rates offered by a fixed term loan, but you may save money through bank offers and changes in the market.

 

Equity

How much of your home you own, compared to how much the bank owns in accordance with your loan agreement.

 

Settlement

The part where you officially own your house! This comes after a settlement period, normally between 30 and 90 days, during which you finalise all the property paperwork and arrangements.

 

Got questions?

Get in touch with Capricorn Beach today. We’d love to chat about available lots and take you for tour of the incredible Yanchep community estate.