First Home Buyers Loan Esperance
First Home Purchase From Parent
This was a non-arms length transaction between a mum and her daughter (there was no contract involved) where the daughter purchased her mum’s home for $350,000.
The actual valuation of the property came in at $550,000 which meant we could use the equity in the home as a type of deposit for the property. In turn this allowed the daughter to purchase the home from her mum with literally no money down.
These types of transactions can be done in any circumstance if all parties agree.
First Home Buyers Stamp Duty Exemption in Western Australia
Each state of Australia budgets differently for first home buyers. This property was in Western Australia. As this was the daughters first home purchase she was eligible for a stamp duty exemption as the purchase property price was $350,000. This saved her $15,390. The Western Australian government in May 2024 increased the FHBs threshold from $430,000 to $450,000 for the 2024/2025 financial year.
How much is the first home buyers grant in Western Australia?
As of 2024, the First Home Owner Grant (FHOG) in Western Australia is $10,000. This grant is designed to assist first-time home buyers with purchasing or building their first home.
However, it’s always a good idea to check with the Western Australian government or the local housing authority for the most current information, as grant amounts and eligibility criteria can change.
Case Study Details
- Location – Esperance, WA
- Type of Loan – Owner occupied
- Purpose of Loan – Daughter purchases her mother’s home.
- Interest Rate – 5.25% per annum
- LVR – 80%
How does a daughter purchase a mother’s home in Western Australia?
If a daughter wants to purchase her mother’s home in Western Australia, the process generally involves several steps. Here’s a general outline:
1 – Valuation and Agreement:
- Valuation: It’s important to get a professional valuation of the property to determine its current market value. This helps in setting a fair purchase price.
- Agreement: Both parties (mother and daughter) need to agree on the sale price and terms of the sale.
2 – Legal and Financial Preparations:
- Legal Advice: It’s wise to seek legal advice to draft a formal contract of sale and handle any legal implications. A solicitor or conveyancer can assist with this.
- Finance: The daughter should arrange financing if needed. This could involve getting a mortgage from a bank or other financial institution.
3 – Contract of Sale:
- Drafting: The contract of sale needs to be drafted and signed. This document outlines the sale price, settlement date, and other terms and conditions.
- Cooling-off Period: In Western Australia, there is no cooling-off period for private treaty sales, so it’s important to be sure before signing.
4 – Conveyancing:
- Process: Conveyancing is the legal process of transferring property ownership from the seller to the buyer. This includes handling all necessary paperwork, including the transfer of land.
- Fees: There will be conveyancing fees involved in this process.
5 – Stamp Duty:
- Calculation: Stamp duty is a tax imposed by the state government on property transactions. The amount depends on the sale price of the home. There may be concessions available for family transfers.
- Stam duty Exemptions – If this is your property purchase you are eligible for a first home buyers study duty exemption which can save you up to $15,390.
- Payment: The stamp duty must be paid before the transfer can be finalised.
6 – Settlement:
- Completion: On the settlement date, the remaining balance of the purchase price is paid to the seller, and the property title is transferred to the daughter.
- Registration: The transfer of ownership is registered with Landgate, Western Australia’s land information authority.
7 – Transfer of Utilities and Services:
- Update: Ensure that utility services and other property-related services are updated to reflect the new owner.
Each of these steps may involve specific details or requirements based on individual circumstances, so consulting with legal and financial professionals is crucial to navigate the process smoothly.
Contact
1A / 14 Smith Street, Moolooalba, QLD 4557
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