The new stamp duty savings introduced by the Victorian government at the start of this month are already helping enable first-home buyers to achieve their dream of property ownership. Agents are reporting a heightened level of activity, with an increase in enquiry levels and attendees at open for inspections, in areas attractive to first-home buyers.
First-home buyers are seeking to maximise their spending capacity by making the most of stamp-duty savings for properties purchased sub-$750,000. Thousands of Victorians have decided that an apartment makes a great first home and apartments within Melbourne’s city suburbs have proven to be highly sought-after by first-home buyers, with a great range of affordable housing options and plenty of choice within their allocated budget. Already in July, more than 85% of established residential property purchased in Melbourne CBD, Southbank and Docklands have been below this $750,000 price threshold.
However according to Lucas Sales Director Chris Henson, the purchase price of a property is not the only consideration first-home buyers should make. “Budget conscious first-home buyers should also familiarise themselves with the cost of all outgoings associated with a property. Sometimes the difference in the initial purchase price of two properties can be negated within the first year through significant differences in Owner’s Corporation Fees.”
“Another consideration for first-home buyers in the midst of saving is the cost of renting vs owning,” Chris adds. “Often the average weekly rental cost in city suburbs is higher than a weekly mortgage repayment. Many buyers would be financially better off to purchase now and start paying off their own home, as opposed to renting longer and helping pay off their landlord’s mortgage. The convenience and accessibility of city living will also often save buyers money. The walkability and cheap public transport on offer, including free trams within Melbourne’s CBD district, has enabled many of our buyers to no longer require their car – allowing them to put the associated costs of car ownership towards the mortgage for their new home.”
We're here to assist you. To find out more about the current market, first-home buying opportunities or for an up-to-date value of your home or investment property, call us on 03 9091 1400