Breaking into the housing market is no easy feat, but we’re here to help. From government incentives to financial planning, tips provide a highly effective pathway to achieve your goal of owning a home.
We’re all aware that the benefits of homeownership are substantial.Not only does having a place to yourself mean you can decorate and renovate it however you wish, it also means you’ll never have to submit to another rental inspection and best of all, you can start building financial security.
Unfortunately, gaining entry to the housing market presents significant challenges. You have to pull together a deposit, get loan approval and of course, find the right house for your needs. It’s a lot. To help you on your way, we’ve pulled together a brief guide on the best ways to break into the housing market.
Here’s how you realize your dream house and make the most of your money
The government recognises that would-be first homeowners face an uphill battle. Various government incentives exist to help eligible buyers:
If you’re in the process of purchasing or constructing a residential property in Victoria, you might qualify for the Victorian Homebuyer Fund. The Fund is a shared ownership model – you put down 5% of the purchase price and the Victorian government provides a 25% stake. You therefore only have to secure a loan for the remaining 70%. To be eligible, you must earn less than $128,000 as an individual or $204,800 as a couple.
After securing the fund, you can either buy the government’s share of the property back by refinancing over time, or pay it back when you sell the property. You’ll share in any capital losses or gains, but you won’t pay interest.
If you’re building a new home, you may also be able to access the First Home Owner Grant (FHOG). This is a payment of $10,000 to contribute to the build cost. There are no restrictions on income – you can apply regardless of your earnings.
The Home Guarantee Scheme allows eligible home buyers to buy with as little as a 5% deposit. You will need to take out a loan for the remaining 95% of the purchase. However, because it’s backed by the government, you won’t have to pay lenders mortgage insurance on top of everything else. Eligible single parents may be able to access the Family Home Guarantee instead, which only requires a deposit as little as 2%.
Explore the outer suburbs of Melbourne, the outer surburbs are full of opportunity!, look to western areas to discover more budget-friendly housing options.
Inner-city Melbourne may be out of reach for most first home buyers, but there are still plenty of opportunities in the outer suburbs. Look forward to family-friendly amenities and realistic price tags.Look forward to family-friendly amenities and realistic price tags.
Western suburbs like Lara, Truganina, Tarneit and Werribee are all an easy distance from the CBD, with commute times ranging between 40 minutes and an hour. They also have great bus and rail networks, along with parks, schools and sporting facilities.
Choose a design that comes with all the inclusions you want such as higher ceilings, stone benchtops, appliances to make sure you’re getting the best price and make sure to it is a fixed priced contract so there are no surprises down the road.
If the idea of purchasing a house feels overwhelming, consider breaking it into smaller steps. Crafting a financial plan is crucial for achieving your aspirations, and the process doesn’t have to be intimidating. some basic steps would be to:
Pay down your debts. Credit card balances, AfterPay and personal loans can all affect your borrowing power. If you have significant debts, paying these off should be first on your list – even before you start to save.
Track your spending and find ways to save. You may be surprised at how much little luxuries are costing you such as UberEats or Subscriptions.
Open a high-interest savings account. A term deposit can also be ideal, as these make it harder to access the money and help you reach your savings goals.
There are a many tips and tricks to help you get into your first home faster. Ranging from financial tactics to governmental incentives, encompassing house and land packages as well as home loan offerings, it can be challenging to stay well-informed about them all. The good news is, you’re not required to manage this on your own. We collaborate with experts in construction finance are we are avaliable in aiding individuals in achieving their dream homes. we’ll guide you in accessing the necessary assistance.
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