Buying or Upgrading to a New Home 

Whether you’re upgrading to your dream home, relocating, or expanding your property portfolio, buying a new home is a major milestone.  

At Sanford Finance, we’re here to make the process seamless and stress-free, offering tailored solutions to fit your unique financial needs. 

Associated Costs and Savings Requirements 

When purchasing a new home, it’s essential to plan for the additional costs and savings requirements beyond the purchase price. Here’s a breakdown of common expenses: 

• Deposit: Typically, lenders require a deposit of 10-20% of the property’s purchase price. Having a higher deposit can improve your borrowing power and secure better interest rates.
• Stamp Duty: As a non-first home buyer, you are required to pay stamp duty, which varies by state. This can be a significant cost, so make sure it’s factored into your budget. Calculate your Stamp Duty 
• Lenders Mortgage Insurance (LMI): If your deposit is less than 20%, you may need to pay LMI, which protects the lender in case you default on the loan.
• Legal Fees and Conveyancing: These costs cover the legal aspects of your home purchase and generally range between $1,500 and $3,000.
• Building and Pest Inspections: These inspections are vital to ensure your new home is in good condition and can cost between $400 and $800.
• Moving Costs: Depending on your location, moving costs can range from $500 to several thousand dollars, especially if you’re moving interstate.

Government Incentives Available to Non-First Home Buyers 

Although government incentives are often directed towards first home buyers, there are still several benefits available to non-first home buyers: 

• Stamp Duty Concessions (State-Dependent): Some states offer stamp duty concessions for non-first home buyers in certain categories, such as retirees downsizing or purchasing a newly built home. Check your state’s government website for eligibility. 
• Off-the-Plan Purchase Incentives: If you’re purchasing an off-the-plan property, some states offer stamp duty concessions, regardless of whether you are a first home buyer or not. This can result in significant savings. 
• Tax Deductions on Investment Properties: If you’re keeping your existing home as an investment or buying an investment property, you may qualify for tax deductions on expenses like property management fees, repairs, and depreciation. 
• HomeBuilder Grant (Subject to Availability):  While primarily aimed at first home buyers and those building new homes, some eligible non-first home buyers may still qualify for the HomeBuilder Grant, offering financial assistance for constructing or substantially renovating a home. 

Options For Upgrading Your Home 

Upgrading to a new home is an exciting opportunity to enhance your lifestyle and move into a space that better suits your evolving needs. Whether you’re seeking more room for a growing family, a modernised layout, or simply a fresh start, upgrading can be a rewarding process. 

At Sanford Finance, we understand that upgrading involves more than just finding the perfect home—it requires careful financial planning and expert guidance to make the transition smooth and stress-free. Let us help you navigate your options, from bridging loans to keeping your existing home as an investment, ensuring your upgrade is both seamless and financially sound. 

Simultaneous or Prior Settlement:

• Simultaneous Settlement: Looking to sell your current home and buy your new one at the same time? Simultaneous settlement ensures a smooth transition, allowing you to move directly into your new home without the hassle of finding temporary accommodation. We’ll coordinate both transactions to ensure everything aligns for a seamless move.
• Prior Settlement: If you’re purchasing your new home before selling your current one, we can help you navigate this option with confidence. Prior settlement requires careful planning, but with expert advice, we’ll ensure it’s a financially sound decision.

Bridging Loans:

• Bridge the Gap: If you’re buying a new home but haven’t yet sold your existing property, a bridging loan can cover the shortfall between the two transactions. This type of short-term financing allows you to purchase your new home first and gives you time to sell your current property without rushing the sale or settling for less than it’s worth.
• Interest-Only Payments: During the bridging period, you typically make interest-only payments on the bridging loan, easing the financial burden while you transition between homes.
• Flexible Settlement Timing: Once your existing home is sold, the proceeds will go towards paying off the bridging loan, and the remaining balance can be transferred into your new home loan.

Discover more about Bridging Loans (Link to bridging Loan Page) 

Keep Your Existing Home as an Investment:

• Build Wealth Through Property: If your financial situation allows, why not consider turning your current home into an investment property? Renting out your existing home can generate rental income while allowing you to grow your property portfolio.
• Tax Benefits: Converting your home into an investment property may also open up tax advantages, such as claiming depreciation and other property-related expenses. Our team can help assess whether this is a viable option for your long-term financial growth.
• Investment Loan Options: We’ll work with you to structure a new loan or adjust your current loan to maximise the benefits of owning multiple properties.

How Sanford Finance Can Help 

At Sanford Finance, we specialise in helping you find the best solutions when buying or upgrading to a new home. From coordinating settlements, securing bridging loans, to helping you decide whether to sell or keep your current property, our expert mortgage brokers will guide you every step of the way. 

Ready to Take the Next Step? 

Buying or upgrading to a new home doesn’t have to be stressful. Let Sanford Finance simplify the process and help you achieve your property goals. 

Call us today at 02 9095 6888 or Book a free consultation with one of our expert brokers to explore your options.