Different ways to deal with deposit issues
Whilst some people may think that recent talk about a slight easing in property prices might mean that things are getting easier for first home buyers trying to get take their first steps into the property market, there is no doubt that saving a big enough deposit is still the biggest issue facing market entrants.
For example, the REIV’s median house price for Thomastown in the December quarter of 2022 came in at $650,000, whilst the comparable figure for Lalor was $640,000. That means that if you were buying your first home in this area you would need around $130,000 in savings for a 20% per cent deposit, not to mention the additional costs of stamp duty and other costs associated with moving into your own home.
Now for some buyers, there are a couple of ways to side-step this issue. For example, we have assisted quite a few first home buyers who have had their deposit boosted with the assistance of “the bank of mum and dad”, with the broader family helping out where possible.
For others, assistance schemes like the Federal Government’s First Home Guarantee is able to support first home buyers with as little as a 5 per cent deposit to get their foot in the door without the need for expensive Lenders Mortgage Insurance, providing what is effectively a guarantee for the home loan.
Of course, there are a number of additional assistance measures for first home buyers provided by the State Government, including stamp duty savings, that can make a real difference as well.
The key here is ensuring that you get the right advice from experienced sources who not only know the market in the area you are buying, but also who know how to access the all of the available assistance measures rather than just some of them.
So if you are looking for your first home in our part of Melbourne, and would like some obligation-free advice and guidance on the best ways to achieve that goal, don’t hesitate to get in touch with our team at Barry Plant Thomastown. You can reach us any time on 9466 3233.
Cheers,
Con Constantinou
Barry Plant Thomastown