First things first, well, no. Second things first!
You've already purchased a property, so you've upped your level — Congratulations! Buying a home is an investment. Even if you have purchased one, you might need another property. It could be for several reasons — to relocate, find a larger/smaller property, or invest in properties.
As you've already purchased a property, it's easy for you to repeat the same procedures. However, there are some tips for second-time buyers that you should know.
Prices of the houses can change rapidly. Due to this vulnerable nature of price changes, you have to be aware of the market condition. It would be best if you were mindful to not rely on previous information.
Check the recent sales results online and focus on the property demands in different areas. Check out Realestate.com.au. The properties in unfitting areas could now be highly preferred. These changes might happen unexpectedly. So don't overlook these factors.
Changes are inevitable, and often, they are due to infrastructure changes, societal trends, and developments in the surrounding. For instance, the COVID-19 pandemic has caused many concerns, and people are opting for the work-from-home module, which increases the need for properties near their offices.
There'll be constant amendments to laws and rules related to stamp duty and loan limits. As this is a continual issue, you may have to stay updated with the information.
Also, remember, some grants, exemptions, or concessions may not be applicable for you when purchasing properties for the second time.
If you plan to buy in a different state, rules may differ; therefore, research beforehand. The stamp duty calculator may help you find the stamp duty effortlessly.
Your home equity can be a helpful tool when unlocking your potential as a second-time home buyer. Islamic Home Loans with Afiyah also allow you to unlock your equity if it is in your best interest based on the funders requirements. However it's important to consider the rental rate.
Your financial position decides whether you need refinancing or not. Islamic Finance can also allow you to refinance and find a better rental rental rate. Thinking of moving to a conventional interest loan to an Islamic Home Loan? The process is not as daunting as it may seem - many clients have found that it was easy to switch from a conventional mortgage to a shariah-compliant home loan.
If it's a falling market, you may sell first before you buy. The reason is if the property market falls after your purchase, it'll create more buying power when purchasing a new place. The new property price would have also fallen, given that the new property would have been on the comparable or identical market as you sold.
Also, if the price increases after selling the property and if you can't find a new property meanwhile, it might reduce your buying power, as the rates for new homes might be increasing.
Optionally, you may consider requesting an extended settlement period for the new purchase. This will buy you more time, so you can sell your previous home and use the funds for the new property.
The question we get ask often is, if one purchased a home using an interest loan, do they need to sell the property to purchase in a Halal home loan? In terms of how the Islamic finance product works, the answer is no. As discussed above, refinancing to an Islamic loan can be done on the condition that the client meets all requirements.
The tax charged on the property you're selling is capital gains tax. The property you're residing in is exempted from taxation so that it will be omitted from capital gains tax.
But, if you're selling a property as an investment property, the capital tax applies to it. Therefore, it's better to talk to your accountant or adviser about your situation. But there are a few ways to reduce your tax burden if your selling property is taxed. So don't forget to talk to your adviser no matter what.
Being a second-time property buyer is fun and exciting, but with many responsibilities. We hope we made it a little simpler for you to get things done. All the best!
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