Are you a first home buyer? Discover why you should consider entering the market now:

  • Many potential investors have left the market and prices appear to have stabilised which allows first home buyers to enter at reasonable levels with less competition.
  • Presently there are great government incentives such as the First Home Buyers Assistance Scheme and HomeBuilder grants which may be available.
  • As of August 2020, the NSW government won’t charge stamp duty to first home buyers purchasing a new owner-occupied home valued at $800,000 or less. Concessions on stamp duty apply up to a value of $1,000,000.
  • This is an increase from the previous threshold of $650,000 and a saving of about $31,000 on a property valued at $800,000. Note these changes are temporary and they are scheduled to expire in approximately 12 months time.
  • At the Federal level, the First Home Loan Deposit Scheme offers a limited number of buyers the chance to secure a property with just a 5% deposit while avoiding Lenders mortgage insurance (LMI).
  • You’ve heard the saying… “Rent money is dead money” … so pay off your own mortgage rather than paying your landlord’s mortgage.
  • Interest rates are at historical lows, in many cases, your mortgage repayment may be less than your current rent.
  • The certainty owning your own home gives you… you can’t be asked to leave if the owner wishes to move back in or sell the property.
  • Buying allows you to take advantage of upside growth… what’s important is having “time in the market”, not “timing the market”.
  • The right property should be a great investment and could form an integral part of your wealth creation strategy as once you have built up equity you may be able to leverage off this equity to create more wealth.
  • Bricks and mortar are usually seen as less volatile than other investments.
  • A mortgage repayment is “Inflation proof”… that is, if paying say $2,000 on your mortgage today, assuming rates stay the same, your repayment in 30 years would still be $2,000, but of course $2,000 today is worth a lot more than $2,000 in 30 years time.
  • Rents will go up with inflation because rent is a factor of value. A landlord is looking for a return (or yield) of say 3% so, assuming property just doubles in 30 years, to maintain the same yield, rent will need to double.