Breaking out of rent cycle
Want to know how you can break out of the rent cycle?
It is much easier than you might imagine to break free from renting.
Just say YES!
Are you able to answer YES to the following questions:
Total household earnings are less than $130,000 for couples or $90,000 for singles
Been in your job for 6 months or more
Maximum purchase price does not exceed $470,000
Want to build with a house and land package
If you answered YES to these questions, then there is a good chance that you may qualify for a loan that only requires a 2% deposit and only 1% of this needs to come from genuine savings. This is great news as it means that if you are looking at building for $470,000, you will only need $9,400 as a deposit.
If you would like further information about how to qualify for this type of loan, please speak with one of our friendly and experienced brokers.
On the 25th September, the state government implemented some major changes to the First Home Owners Grant (FHOG). We will have to watch the data closely over the next few months to see what this will mean but almost certainly it will push first home buyers in to building rather than buying established. We will keep you up to date in the coming months but for now let’s look at how things were.
According to figures released by the Urban Development Institute of Australia WA, first home buyers (FHB)were spending record amounts on new homes. The average FHB in the West Australian capital spent $450,000 in July, an increase of $32,000 a year earlier.
The region’s under-$600,000 property market share has been moving at quite a pace over the past year, with UDIA WA Division chief executive, Debra Goostrey, stating that there are signs of a ‘two-speed’ market.
“There are many first home buyers and investors competing in the same sub-$600K market, which is forcing prices up,” she said.
Goostrey added that there were over 5,000 more FHB grant applications made in the 12 months to July compared to a year ago – and nearly twice as many compared to two years prior.
However, while established property market listings and rental vacancies have risen in recent months, Goostrey says there are still ‘relatively few’ dwellings priced in the FHB and investor range.
This data indicates that the First Home Owner market has been experiencing strong growth but with the continuing price rise, this may not be sustainable. Watch this space as we await news on the impact of the changes to the FHOG.