Buying your first home in Melbourne can seem far away when prices keep increasing at a rapid rate. There are some things that you can do to get you closer to your dream property whether it be a unit, single front weatherboard or double story home.
Getting mortgage approval is an essential step in house buying, but gaining pre-approval will provide even more peace of mind. To speed this process up, write a list of all your current expenses for several months to get a good sense of how you’ll be able to afford repayments.
You may opt to engage a broker or directly approach a lender yourself, but the key is to ask as many questions as you need. The people who assist you with your loan application have done this hundreds of times before, so draw on their expertise and get a sense of how long the process will take given your specific circumstances. Don’t forget to get your paperwork in order which may include proof of identification, payslips, proof of assets, evidence of savings and PAYG statements. Electronic versions of these in many cases will be okay.
Recent State budget measures will provide some savings for those purchasing their first homes in Victoria. Stamp duty, the Government’s land transfer fee, will be abolished in the future for eligible first buyers on property purchases under $600,000. Properties up to the value of $750,000 will also receive a stamp duty discount based on a sliding scale.
Also announced are measures that allow voluntary super contributions accrued from July 1, 2017 to be used by first time buyers for house deposits. This equates to a tax break when you salary sacrifice from your pay check into your super until you are ready to purchase.
Off the plan sales concessions on stamp duty already exist for those purchasing house and land packages and remain a great way to save on sunk costs when purchasing your first home.
Reconsider your area
The value of your home is predominantly land based and as suburbs and cities expand, it is becoming rarer to have a decent amount of square meter age. If being squashed into an apartment or suburban residence far from your job isn’t your idea of the Australian dream, perhaps it’s time to reassess where you have been considering purchasing.
Satellite cities are becoming popular among first home buyers, with areas such as Geelong and Ballarat providing good value for money. Many younger families and professionals alike are making the change to regional towns whether it be established properties or house and land in Geelong that are only 50 mins to Melbourne via car.
Ultimately, consider the lifestyle you want and find an area that will suit you and your budget best, it may surprise you where you end up calling home. If you do some research and explore your options, you may find your dollars can stretch further than you thought and get you in your first home, sooner.