It’s time for first home buyers to shine!
Since the sudden drop of the price of Sydney property, first time home buyers just might be able to purchase their own property, but only if they can raise the money to pay the deposit.
According to the Westpac 2018 Home Ownership Report, 69 per cent of first home buyers agree that they are more positive about the property market. However 70 per cent of people raised concern with their ability to raise enough money to place the deposit on a property, which is typically 10 per cent of the purchase price.
The Bankwest First Home Buyers Report stated that it can take couples approximately five years on average to save enough to place a deposit on a house in Australia.
The same report shows that couples in Sydney will need around 8 years to save the deposit for a median priced house which is 3 years more than the national average.
It is stated that it could take up to 12 years to save the deposit for a home in Randwick while it would take approximately 6 years to save for a home in Campbelltown. According to CoreLogic, the median house price in Melbourne is $828,720 compared to the median price for a home in Sydney which is $1,033,892.
So although the prices of property in the market have decreased, it can take close to a decade for a couple to even get as far as to save for a deposit on a house in Sydney. This has led to many first time home buyers purchase property in Sydney’s inner west as the property in Sydney’s city has proven to be extremely expensive. Reports from Supplied show that as a way to help first home buyers, the NSW Government has implemented a scheme known as the “First Home Buyers Grant”. The grant aims to relieve home buyers of some of the costs involved in purchasing a property. The main aims of the government plan are:
- abolish stamp duty on all homes up to $650,000
- give stamp duty relief for homes up to $800,000
- provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new
homes up to $600,000.
- abolish insurance duty on lenders’ mortgage insurance
- ensure foreign investors pay a higher duties and land taxes
- no longer allow investors to defer paying stamp duty on off-the-plan purchasers.
The implementation of the NSW Government scheme combined with Sydney’s falling property prices does indeed help first time home buyers but it will take them more than a few years to place a deposit on a home, especially in Sydney.
If you are a first time home buyer or need any advice on buying or selling property you can contact the team here at Kydon Segal Lawyers and we will be happy to be of assistance!