What first home buyers in Melbourne need to know right now
If you’re a first home buyer in Melbourne, how can you take those vital final steps towards home ownership?
You’ve been saving hard for a deposit for your first home and now seems like a good time to buy. If you’re a first home buyer ready to make a move, how do you set things in motion?
Know your borrowing power
Finding the best loan, preparing your application and knowing what first home buyer incentives you qualify for are important first steps. Your bank, financial advisor or mortgage broker can give you a clear picture of what you can borrow and what financial help you’re entitled to.
“Interest rates are at a record low. Lending restrictions have become tougher but first home buyers are seen as a pretty safe bet by most banks because they’re young, at early stages of their career and have time to pay a loan,” says Nerida Conisbee, chief economist at realestate.com.au.
In addition, the Australian Prudential Regulation Authority (APRA) recently completed a revision of the way in which borrowers are assessed, resulting in buyers accessing more funds per loan and making it easier to secure a mortgage.
The government’s financial incentives also assist with the pathway to home ownership. These include the First Home Owner Grant for Victorians buying or building a new home valued up to $750,000 – the grant is worth $10,000, or $20,000 if you buy or build in regional Victoria.
First home buyers may also get stamp duty exemption or concession and access to a First Home Buyer Deposit Scheme if they save five per cent of the value of their home.
The affordability factor
Melbourne’s new home developments can be found in affordable areas only 20km to 40km from the city. New road and rail infrastructures mean some of these new estates are a short drive or ride from the CBD or inner suburbs.
Conisbee says growth corridors north and west of the city offer an affordable price point and developers are vying for the first home buyer dollar, too.
“Investors have pulled back, so first home buyers are a core market. A lot of developers are more prepared to do a deal,” she says.
Satterley’s developments in Tarneit in the outer west and Mickleham in the north highlight the affordability of the new home market, with Tarneit’s median home price sitting at $555k and Mickleham’s at $500k.
“Land is a lot more affordable now than in the first half of 2018, plus developers and home builders are running promotions for first home buyers,” says Jack Hoffmann, Satterley’s General Manager – Victoria and Queensland.
Satterley’s current offer sees people who buy any block of land in one of their participating communities receive up to $20,000 as part of their ‘Make Living Better‘ promotion.
“You can buy a block of land with a deposit of $10,000 and we have titled and untitled stock. So purchasers can buy a titled block of land and start building straightaway, or buy a block that won’t be titled for six to 12 months so they can have more time to save before they settle,” says Hoffmann.
Areas of growth
Once you know your borrowing power and begin narrowing down your search area, it’s time to start visiting communities to find the one that suits you best.
Satterley has focused on creating quality residential communities at Botanical in Mickleham, Habitat in Tarneit, True North in Greenvale, and Upper Point Cook in Point Cook.
Common to all these thriving developments is a focus on quality homes, planned open spaces, walking and cycling paths and access to facilities and amenities such as schools, shopping centres, entertainment hubs and sports centres. Accessibility to road and rail networks is also key.
Botanical is Satterley’s largest project in Victoria so far, which will feature around 2,400 homes and over 30 hectares of public open spaces including parks and playgrounds. The established Craigieburn Central shopping centre is a five-minute drive away, as is access to the Hume Highway.
“Habitat has brand new parks and Davis Creek meandering through it, which lends itself to walking trails and running tracks. It’s more boutique and is good for young families because it’s close to shopping centres,” says Hoffmann.
“We do the majority of our business in the growth corridors. They’re popular with first home buyers and young families and have everything people need when they choose to make these areas their home,” says Hoffmann.
Satterley is currently offering anyone who buys a block of land in one of their participating communities up to $20,000 as part of their ‘Make Living Better‘ promotion.