At some time or another, you’re going to be faced with the prospect of buying your first home. Ownership of real estate is one of the great Australian dreams, even if the landscape has shifted from a house in the suburbs to a more unit-oriented market.
No matter your property preference, Lara & Northern Suburbs real estate can offer you what you need. Established smaller homes go hand in hand with new and established family homes of all price ranges, offering you a fantastic series of opportunities to get your foot on the bottom rung of the real estate ladder.
There are often concerns about how affordable property is in the current market, but we think there are several reasons to consider buying in the near future. Here are a few of them.
A fantastic interest rate environment
The Reserve Bank of Australia has cut the official cash rate twice so far this year, and each time has seen interest rates follow it on the way down. In fact, some lenders have noted that the rates they have been offering on mortgages are their lowest in up to 50 years.
Even as prices rise, the financial details of signing onto a home loan become more and more desirable. Lower interest rates mean you have to pay back less, and could potentially lead you to have more borrowing power – letting you hit those higher price brackets. Of course, it’s important to remember that nothing lasts forever – interest rates will eventually rise again, which is something you should be factoring into your plans!
Stability in first home owner grants
Every state and territory has some variation on the first home owner grant, which enables people to access a set amount of funding when they purchase their first home in the form of an already existing home, a newly constructed dwelling or build one themselves.
In Victoria, this grant is up to $10,000 for a newly constructed home or a 50% stamp duty discount for an already existing home – a significant stepping stone to ownership.
If you are buying an established home, the stamp duty discount will be refunded into your account a few days after settlement of your new home.
To see the stamp duty & government charges & discounts available to you, visit the stamp duty calculator here.
If you have been looking for a leg-up to get into the property market, this stability could be just the confidence booster you need!
The crowd is moving in the same direction
Where there’s smoke, there’s fire – and it looks like Victoria’s lending activity is heating up! The Housing Industry Association (HIA) commented on the latest Australian Bureau of Statistics figures for home lending recently, which look good for the state.
Over the three months to April, the seasonally adjusted estimate of new mortgages going to home buyers rose by 2.8 per cent across Victoria. This suggests more and more people are ready to make a purchase, be they investors, upgraders or first home buyers.
“In April 2015 there was a 4.3 per cent increase in the number of owner occupier loans for construction, while the equivalent number of loans for the purchase of a new property rose by 1.6 per cent,” noted the HIA’s chief economist, Dr Harley Dale.
This suggests a wealth of people who could be taking on the aforementioned first home owner grant. If you’d like to be among them, 2015 could be the time to Geelong Property! Make sure to get in touch with us here at Ray White Lara & Northern Suburbs for more information on real estate in the area that lines up with your goals.