The latest happenings in the Melbourne property market. For our Essays and The Secret Agent Report, see our Research page.

Category Archives For: First Home Buyers

Additional information for 1st home buyers

Many property's that are sold, have a continuing lease arrangement that passes with the sale.

1st home buyers are often finding that they are unable to move into the property because of this.

To obtain the grant, a 1st home buyer needs to be in the property within 12 months of buying that property if a lease is in place.

Be careful with checking the lease agreement. Some lease might have an option in the agreement for the tenant to continue with another 12 month lease after their 1st term has finished.

This would then make your application for the grant fail.

Get proper legal advice on a vendor statement before committing to an unconditional contract.

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First home buyer grant extended

The government has decided to extend the first home buyers boost which was due to be dropped at the end of June.

The full grant will remain for the first three months after the end of this financial year and then will be lowered for the following three months after that.

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The 1st home buyers market

It will be interesting to see the impact of the 1st home buyer 'bonus grant' being cut by the end of June this year.

It's really amazing how this is affecting the entry point stock in the market at the moment. I've spoken about it a number of times on this blog, but stock under $600,000 has just gone 'banana's' in many instances.

Two property's in Brunswick demonstrated this last week. Both were single fronted period homes. The 1st property had an asking price of $450k, of which it sold for $487k. Another had an asking price of $485k and this sold for $503,500.

The asking price would have bought each one of these places and perhaps even a lower price would have been taken by the vendor. The reality is, that the interest levels were so strong and competitive, buyers were quite willing to offer well over asking price to secure there home.

Official data for housing finance released on Thursday showed that first home buyers made up 25.4 per cent of all loans in December.

Great pressure will be on the government to keep the grant, however if it is taken away, it might take some real stimulation away from the market.

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More on the 1st home buyers grant

I’ve had a number of questions in relation to the benefits for 1st home buyers in the recent financial support package delivered by the federal government.

Here is a quick summary:

  • For purchases in Melbourne up to $500,000, applicants will receive $17,000.
  • For purchases in Melbourne over $500,000, applicants will receive $14,000.
  • For construction or new dwelling purchases in Melbourne up to $500,000, applicants will receive $26,000.
  • For construction or new dwelling purchases in Melbourne over $500,000, applicants will receive $21,000.
  • This is for contracts entered into between the 14th October 2008 to 30th June 2009.

Hope that helps!

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Government rolls out extra incentive for 1st home buyers

The housing sector has received a further boost today with the federal government tripling the 1st home buyers grant of $7000 for a newly constructed home as well as doubling the $7000 grant on existing housing.

This is a rather strong adrenaline shot for the housing market. The government seems also rather keen to stimulate outer ring property markets that rely much on new housing stock.

1st homebuyers will no doubt view this with great confidence.

For the full article read here

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1st home buyers are being heard

It looks like some help could be on the way for 1st homebuyers with the premier John Brumby, receptive of further ways to help the average 1st homebuyer enter the property market.

The REIV has proposed three ideas for the premier to consider:

  • Match deposits into 1st home saver accounts
  • Further increase the 1st homebuyers bonus or grant
  • First home owner equity boost of stamp duty rebate

I’d be interested to hear other peoples ideas…

The state of 1st homebuyers.

I’m certainly seeing far more caution in the 1st homebuyer market at the moment when it comes to buying and borrowing.

Many do not want to gear themselves to heavily; this is both understandable and smart.

The typical 1st homebuyer purchase in the inner city is to acquire a ‘stepping stone’ property such as an apartment, with the view to upsizing to a an house in the years to come.

This is a smart strategy, which means that the 1st homebuyer is not over leveraged but picks up any growth achieved to help make the next purchase possible.

Often the hardest purchase is the 1st.

It’s hard to get on the property ladder. However once the 1st purchase has been made, the next purchase for that right home just becomes that little bit easier for the average 1st homebuyer.

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1st Home Buyers Grant

Over the past couple of weeks I have had a number of emails from buyers looking to buy their very 1st home which has been great.

Many want to use the 1st home buyers grant as part of their purchase which makes much sense, the thing I have noticed is that many are unaware on the limit imposed for that grant to be approved.

The property purchase must not exceed $500,000; if it does then the grant won’t apply to your purchase.

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