There is a lot of hype in the media about the Melbourne and Sydney property markets. After the investors surge in Melbourne over the past couple of years we have seen the prices of property within close proximity (15-20k’s) of the city shoot beyond the grasp of a good portion of first home buyers.
Has it pushed first home buyers out of the market, absolutely not!
It just means that they could look for home ownership opportunities in the new areas being built. There are some great areas in Melbourne’s north and South East that remains affordable and plans to provide great infrastructure in the coming years. The idea is you want to beat the train line out there, so that your property is more likely to experience growth.
With 35,000-40,000 people moving to Melbourne every year and growing, it is safe to say this expansion will continue and developers will continue to release land for you.
A few benefits for your as a first home buyer:
– You will only need a 5% deposit on the Land
– You will only need a 5% deposit on the building
– You can secure your land now to take advantage of cheaper prices, continue to save and build later
That means on a block of land worth $200,000, you will only need $10,000 + Stamp Duty of only $3,185.
Repayments on a loan of that size could be as low as $240.68 per week based on a loan amount of $190,000 and an interest rate of 4.50%
Have you considered whether or not you can enter the market sooner than you thought?