The great Australian dream to own your own home can feel especially hard for first home buyers, now more than ever. Home ownership of individuals aged 25-34 has decreased in recent years from 60% to 48%. With rising costs, lending constraints and increasing house prices, it can be hard not to get overwhelmed. Luckily, as a first home buyer, there are several ways to help you get your foot in the property market door and achieve your dream.
We’ve collated some of the main things to keep in mind to help you in your journey.
1. Location, Location, Location
In the major cities, housing affordability can be especially difficult for first home buyers, particularly in high density areas. Available land has decreased dramatically and will continue to do so. This can present a great chance however, for new buyers to look slightly out of the major areas and look towards places like Wollongong, Shoal Haven and Kiama.
In these areas, housing and building can be much more affordable. While out of the major city centres, these areas still offer growing infrastructure and opportunities as well as fantastic future ROI. Corelogic reports show for example, that the Illawarra region has experienced strong growth within the last couple of years with house values increasing by 13 percent in 2017 alone.
Surrounding areas have also been performing well with Wollongong reporting 13.9% or higher growth and Shoalhaven reporting an incredible 19.5% gain over the same period. These areas are still located near Sydney but offer a much more affordable way to get into the market.
If you’re a first home buyer, there are a bunch of government grants and concessions available to assist you in getting into your first home. Currently, the different grants are offered depending on your individual eligibility and it’s important to find out what is best for you and your future needs.
The biggest grant opportunities come with building a new home, with $10,000 offered to subside the cost of building if you choose to do so. Along with this, you won’t have to pay stamp duty if the house is under $650,000 (and you will get a concession rate between $650,000 - $800,000).
If you are building new, you have a full 12 months to move into your brand-new home and get the benefit of having a newly designed home to live in that will last for many years to come (and potentially offer further tax incentives). The cost benefits to buying a new home vs an existing house is in the breakdown below:
You can claim a first home owner grant if:
- You are building a newly constructed home, one that is being substantially renovated to the value of up to $600,000 OR are building a new home to the value of up to $750,000
- You are over 18 years of age
- You are an Australian Citizen or permanent residence
We know that looking for your first home can be an incredibly daunting task, but with the grants available for first home buyers who wish to build and an experienced builder you can achieve your dream home. At Evolution Building Group, our aim is to guide you through this massive life decision and share with you our years of expertise as well as our wealth of knowledge in the industry to help you on your way to financial freedom. If you would like help on your journey to owning your first home give us a ring on 02 4244 1212 or email us at firstname.lastname@example.org.
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