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Time is critical for first home buyers

Real estate & property news
11 January 2020
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One of the most common topics we get asked about when people realise you work in real estate relates to picking “the right time” to buy or sell. You know the questions… “Is now a good time to buy?” “Is now a good time to sell?” “Should I wait until interest rates drop again?” “How long will prices keep going up?”

Whilst there is no cut and dried answer to questions like these, anyone with real experience in the property market will tell you that the right time to buy or sell depends more on your own individual circumstances than it does on the market.

However, if you’re a first home buyer who is keen to make use of the Government’s ‘First Home Loan Deposit Scheme’, (meaning that you have a deposit of between 5% and 20% and you’d like to avoid having to pay for Lender’s Mortgage Insurance), then the answer to the question is simple one… Get A Move On!

Here’s why. The First Home Loan Deposit Scheme is limited to the first 10,000 applicants each year, and whilst it only came into effect on January 1st this year, word has it that there have already been more than 1000 applicants through the Commonwealth bank alone! When you consider that around 100,000 people buy their first home each year, this year’s allocation looks like being oversubscribed quite quickly. What’s more, we may be a little cynical where our politicians are concerned, but there’s no real guarantee that Canberra won’t decide that they might change the scheme to something less helpful next year, or harder to qualify for!

If you’re not sure about how the First Home Loan Deposit Scheme works, there is an income test to determine your qualification. Applicants need to be:

  • Singles with a taxable income of no more than $125,000; or
  • Couples with a combined taxable income of no more than $200,000.

Keep in mind that anyone planning on purchasing their first home with another person who is not a spouse or defacto, (like a sibling or parent for example), will not be eligible for this scheme.

You can access more information about how to qualify by going to the First Home Loan Deposit Scheme website, but keep in mind that this online tool is intended to be a guide only. It will not provide a guarantee of a loan from a participating lender.

Of course, if you need any assistance in finding the right home, whether you’re looking for your first home or not, you can always call our friendly team at Barry Plant Gladstone Park on 9330 1088.

Regards,

Nick Pugliese – Director

Barry Plant Real Estate

Gladstone Park

Real estate & property news
11 January 2020
Save Article

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