Property trends come and go and come again, but right now is a particularly interesting and opportune time for first homebuyers. So believes Bryce Patterson, Director of Capital Property Marketing who is seeing a sharp increase in first home-owner enquiry due to several compounding factors.
Patterson says, “This is the first time for many years, decades even, First Home Buyers have more opportunity than ever to get themselves onto the property ladder.
It’s been well documented that millennials in particular have found buying their first home a lot more difficult than previous generations. Therefore, the government grants and stamp duty exemptions on offer right now are particularly welcome. However, many people are not actually aware of what is available to them, and specifically that they might be closer than they think, to owning their own place.”
First homebuyers are leading enquiry and are indeed a bright spot in what otherwise has been a difficult year. Young professionals eager to take the first step onto the property ladder look to affordability, amenity and lifestyle, a combination that Brunswick Yard happily provides.
The combination of historically low interest rates of 0 .1% (cash rate) and government grants have boosted the appetite for entry-level property product.
Bryce Patterson observes that he is receiving upwards of 70% enquiry from first homebuyers for Brunswick Yard and says, “The 0.1% interest rate is making money cheap to borrow. So this is impacting the housing market. It is getting to a point where people who have been used to renting, realise it is becoming cheaper to buy. Gen Y’s in particular have been saving money because of lockdown so it is more affordable to buy than rent.
For first home buyers in particular it’s not servicing the loan that is the biggest problem, it is saving the deposit in the first place.”
The First Home Buyers Grant is a Victorian state grant to help more people achieve their dream to own property and build a better financial future. It applies to purchases up to $750,000.
The grant is for $10,000 for inner city and $20,000 for regional locations. And most excitingly, First Home Buyers purchasing their first place up to $750,000 receive stamp duty concessions. If a home, for example, has a dutiable value of $600,000 or less, purchasers receive the first homebuyer duty exemption (no duty payable). However, if a home has a dutiable value of $600,001 up to $750,000, then purchasers will receive a first homebuyer duty concession of 50% reduction of stamp duty, which is significant.
The residential Homebuilders Grant has been extended to the end of March 2021 albeit at a reduced rate of $15,000. The grant is available to individuals with annual income below $125,000 a year or couples with a combined income of up to $200,000 based on 2018 – 2019 tax returns.
Bryce Patterson has seen first home buyers seizing upon and capitalizing the government grants and generous financial assistance but believes many people don’t know all that is available to them. “These are once in a lifetime conditions,” says Patterson.
Looking at off the plan projects is a particular skill set and one that Capital Property Marketing Director, Bryce Patterson is well versed in.
“The most interesting thing about all of the above grants and concessions is that they can be compounded. So, if a person is eligible for them all, they could be saving many tens of thousands of dollars if you are looking to buy in the Brunswick area.”
I always impart advice on what to look for to ensure that you are putting yourself in a good financial position for the future” says Bryce.
