Claudia Grentell with her two children Micah, 5, + Maisie, 2. Claudia and her partner (away working FIFO) bought their house in November and borrowed extra money to cover stamp duty and other costs with the purchase. Picture: Nigel Hallett
First-home buyers Claudia Grentell and Tristan Thomson were more than willing to bundle stamp duty fees into their home loan to get into the property market sooner.
The young parents, who have two children, recently bought a property in southeast Queensland after searching for more than six months.
The first home buyers were willing to bundle stamp duty fees into their home loan to get into the market sooner.
Ms Grentell, 24, said she and Mr Thomson, 25, were “blissfully aware” they would be paying interest on the stamp duty component of their home loan.
She said their broker took the lead in their mortgage journey — the couple paid $830,000 for a freestanding house, while their mortgage was $840,800, which included stamp duty fees.
“As first home buyers, this is what we were advised to do if we wanted to buy,” she said.
“When you’re not content in doing something for the first time you’re happy to be led.
“Whether it was the right thing to do, I don’t know.”
WEEKEND REAL ESTATE Buyers taking on extra mortgage debt to cover stamp duty. Photo: Claudia Grentell with her two children Micah, 5, + Maisie, 2. Claudia and her partner (away working FIFO) bought their house in November and borrowed extra money to cover stamp duty and other costs with the purchase. Picture: Nigel Hallett
The couple had saved about $30,000 for their house deposit and upfront costs.
“Because we were using a guarantor, our broker explained we could add some of the upfront costs to the loan if we wanted to keep extra cash aside,” Ms Grentell said.
“We paid some of our solicitor fees upfront (including the guarantor-related fees), then increased the loan amount to cover the remaining solicitor costs, plus any stamp duty we owed.
“That meant we were able to keep around $12,000 at settlement.”
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The couple were looking to buy for six months and saw that people were paying more than the houses were being advertised for.
The couple used the cash for renovations and moving costs.
Being able to buy put an end to the family’s weekend run-around at open homes.
“We were going to open homes back to back on Saturday and Sunday and you would go and see 50 other people there and think ‘wow I’m not even going to bother’,” she said.
“We were looking for a while and we saw that people were paying more than the houses were being advertised for.”
The couple were going to open homes back to back on weekends. Picture: NewsWire/ Monique Harmer
They eventually came away with the keys to a house in Beenleigh, in Logan City.
“We previously lived on the northern end of the Gold Coast, but to enter the housing market we decided to buy in Beenleigh,” she said.
“As a family of four, this move meant our children could stay at the same school and continue their extra-curricular activities.”
Aerial view of Central Coast, NSW.
And with this month’s interest rate rise, Ms Grentell said their would be some sacrifices.
“We live a modest lifestyle but it will probably be my leisure spending that I will have to cut down,” she said.
“In terms of being able to afford the rise, it’s affordable but it’s not a nice thing.
“We like to holiday and a holiday won’t be coming up any more.
“It will also be things like takeaway when I don’t feel like cooking — that will have to stop and we will have to do a food shop that will last through the week.”
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