When seeking advice about buying your first home, you have no doubt heard “right now is the perfect time to buy”.
‘Right Now’ IS the perfect time to buy, money is cheaper to borrow than it’s ever been, government incentives are the best we have seen in over 2 decades and interest rates are at historic lows of 0.25%.
Should you meet the requirements and you could be entitled to the following Government Incentives -
· $25,000 Home Builder grant
· $10,000 - $20,000 First Home Buyer Grant
· Stamp Duty exemptions
· 5% Deposit Scheme (no LMI payable)
Collectively, you could be eligible for up to $45,000 in cash and savings and only need only a 5% deposit. If you were buying a home at the value $450,000, you only need a $22,500 deposit. With all the potential grants you may only need to borrow $382,500. This would give you instant equity of around $68,000 just for building a brand-new home.
Experienced investors will tell you that the first five years of a new loan are the most expensive and buying when interest rates are this low gives you a huge head start. To put things into perspective, 10 years ago Australia recorded its lowest annual average since 1955 of around 4.17%. Today, banks are offering interest rates half of that varying from 2.09% - 2.17%.
Promotion of foreign buying has come to a halt as Australia looks to rebuild its economy and create more work for Australians. The government are spending $1.3b to help stimulate the economy by creating new jobs through the construction industry. What most people might not know is that the despite the pandemic and a stage 4 lock down, House/Land agencies are recording their largest sales months ever. This is a clear indication that that the extension of the government grants are working and is looking like it will propel the property market forward.
Buy Verse Rent at Newport Village –
1 bedroom, 1 bathroom, 1 car space
5% Deposit needed: $23,000
Home Loan after cash grants: $402,000
Monthly Repayments to own = $1,683
Monthly Repayments to rent = $1,776
Monthly Saving: $93
Instant Equity: $58,000
P: 0438 986 916