The areas where first-home buyers are using government handouts
WHILE the majority of first-home buyers are making the most of government incentives by buying in Sydney’s outer ring, there are a few surprise suburbs on the list.
FIRST-HOME buyers are taking full advantage of government grants and incentives, allowing them to gain a foothold back in the marketplace. Changes to legislation in 2017 have given first-home buyers the chance to purchase property under $650,000 without paying stamp duty, while properties priced up to $800,000 will also receive discounts.
On top of this, first-home buyers building a new property worth up to $750,000 are entitled to a $10,000 grant, as are those buying a new home worth up to $600,000.
The most active region using government incentives is the 2170 postcode, which includes areas like Casula, Liverpool and Moorebank, where just over $9 million worth of first-home buyer grants and exemptions were handed out.
Postcode 2560 including Bradbury and Campbelltown and postcode 2145 which encompasses Wentworthville and Westmead round out the top three, according to NSWs State Revenue data that has been analysed by finder.com.au.
Kate Browne of finder.com.au said it was encouraging to see so many first-home buyers taking advantage of government handouts.
“In NSW, properties under $650,000 are exempt from stamp duty which could be why we’re seeing more Sydney first-home buyers choosing affordable outer-city suburbs like Casula, Hammondville and Westmead,” she said.
While the majority of suburbs in the top 20 were from Sydney’s outer-ring suburbs, there were some surprises like the inclusion of both Homebush in the inner west and Ryde in the north.
Around $4.55 million worth of grants and exemptions were handed out in the Homebush postcode, while in Ryde there was just over $3.116 million.
The data also showed that first- home buyers are borrowing on average $32,000 more per home loan today than they were two years ago.
Buyers agent Rich Harvey of propertybuyer.com.au said it was important to go into the buying process with a long-term approach.
“When you buy your first home you need to look at it as an investment,” he said.
“You need to think really carefully about where you buy so you can generate equity and add value.”
There has been a noticeable rise in buyers looking for brand-new properties in the northwest and southwest regions, attracted to the quality of the new build, he added.
When searching for a suitable property, Mr Harvey said first-time buyers should view between 50 and 100 properties before making a shortlist and getting the value appraised.
“A lot of first-home buyers can get caught up emotionally and overpay even in this softer market,” he said.
“It is key to set a bidding limit and stick to it, making sure you know what the property is worth and being prepared to walk away.”
Glen Craigie of McGrath Liverpool said first-time buyers now had time to properly research the market.
“Make yourself familiar with the market and view more than one home,” he said.
“It is a great time as there are properties you can actually consider rather than being pushed to make quick decisions.”
First-home buyer Elena Grasso believes that now is the perfect time for first-home buyers to finally get a foot in the market.
Ms Grasso recently purchased her first home at Elizabeth Hills, teaming up with her sister and sister’s husband to make it easier.
The price the trio paid allowed them to take advantage of stamp- duty concessions, halving the amount they paid allowing them to put the money towards other purchases.
“We are in a period where prices have dropped so it is a great time to buy,” Ms Grasso said.
“The inclusion of stamp-duty concessions helps make the Australian dream of owning a home a reality.”
With so much information available to first-home buyers, Ms Grasso said research was the key.
“Familiarise yourself with government incentives and, if you can, team up with family,” she said.
Source: Owen Roberts, Daily Telegraph, 9 November 2018