5 reasons why now could be the time to build your first home
If you’re keen to stop renting and start owning, even in a tricky market, the leap is possible.
Daunting as it may seem, getting out of the rent cycle and building your first home could be possible in today’s market.
There are challenges, of course – saving a deposit, securing finance, and finding the perfect house and land – but there are experts who can make the journey easier.
Here are five reasons why now could be the time to make the move.
1. Break out of the rent cycle
If you’re renting, the idea that you’re avoiding interest rate rises could be soothing, but the reality is that landlords are probably already passing them on.
“Because rents are rising so rapidly, some renters are probably doing the math and thinking, the amount I’m paying, I could be repaying a mortgage,” said PropTrack economist Anne Flaherty.
Another problem is the quality of rental options available amid record-low vacancy rates. In Perth, they are at just 1%, Flaherty said.
“That is the second lowest of any capital city in Australia, behind Adelaide (0.9%), and is a staggering 60% lower than it was at the start of the pandemic in March 2020,” she said.
2. Get over the deposit hurdle
Saving for a deposit is tough and the higher property prices go, the more time it takes to get one together.
“We know that over the last decade, the average time people take to save for that first home has been growing,” Flaherty said. “They might be able to service a certain size of mortgage but they’re not able to put together that deposit, so that’s keeping them out of the market.”
The good news is that the belief you need 20% in the bank is not necessarily true. There is a variety of low deposit options, as well as supportive government schemes that could be relevant to your situation.
There are also programs such as My Home Plan, where Homebuyers Centre’s finance partners, Resolve Finance, can help first-home buyers save for that deposit. The program gives support to track spending, saving and debt reduction, which could get you out of the rent cycle faster*.
3. Access suitable government support
In addition to getting the right help with saving, there’s also the potential to tap into government support schemes. For example, the federal government’s First Home Guarantee, Family Home Guarantee and Regional Home Guarantee schemes provide potential for eligible first and second-home buyers to start their journey for as little as a 2-5% deposit.
In Western Australia, the state government also offers the First Home Owner Grant (FHOG) of $10,000 to eligible applicants.
To make sure you're aware of all the schemes and incentives for first-home buyers it's best to speak to a lending professional such as a mortgage broker.
4. Homebuyers Centre’s Home Accelerator
A key challenge for first-home buyers keen to build is having certainty of cost.
You can lock in your house & land package at today’s prices, and gives you more time to save at the same time.
There’s also the benefit of having a dedicated finance coach from Resolve Finance to help you understand your financial roadmap and meet key milestones along the way to keep you on track towards your goal of home ownership.
It’s like heading to a personal trainer to get physically fit, you can have a finance coach to get you financially fit*.
5. Live in your dream design
First-home buyers often assume they will have little choice when it comes to the location, design and interiors of their home, but that’s not always the case.
You can access to a wide range of exclusive affordable land across the Perth Metro area and South West region, plus home designs ranging from two to four bedrooms.
You also have a lot of control over your selections and, if preferred, you can choose from expertly pre-designed colour schemes, inspired by their display homes, for peace of mind and another way to make the journey easier.
Furthermore, it won’t take years to get the keys and move in. You can speak with the builder regarding their current construction timeframes to give you confidence in how soon you could be in your own home.
Ultimately, with the right help, getting a deposit together and choosing the perfect house can all happen smoother, and sooner, than you might have expected.
Source: https://www.realestate.com.au/news/5-reasons-why-now-could-be-the-time-to-build-your-first-home/