Housing affordability - Some brief comments for first home buyers

Driving around between appointments yesterday, a couple of the headlines I heard on the radio: - housing crisis for renters with high cost of accommodation and low availability; & - bank claims that this is the worse time ever for first home buyers. All very dark and gloomy with last week’s RBA announcement of the increase to the cash rate being the rotten cherry on top. |

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HOWEVER, there are opportunities…….. A handful of useful tips; especially for the first home buyers: 1. Get good advice: Know where you stand in terms of that first huge step towards being a homeowner, and if you are not quite ready to take that leap, know what you need to achieve to do so. The great thing about Mortgage Brokers, the bank pays us to help you…….. therefore, why not use us? You will often find that we will help you through the process; even if you are not quite ready to proceed. TIP: Just confirm with the Broker that there is no upfront or additional charge. 2. Know the benefits and resources available to you. Your mortgage broker will often be able to help you with this, but some of the matters you will wish to consider: - Stamp duty concessions or exemptions (state-based); - Home Guarantee Scheme; - Victorian Home Buyer Fund; - First Home Super Saver Scheme; - Australian Defence Home Ownership Assistance Scheme; and - For the lucky few, the ancillary bank of mum and dad. Some information available under "tools & resources" at kistafinance.com.au. 3. Buy well: For most people, your home is your largest investment - invest well. Additionally, for first home buyers this is often a steppingstone - may be a 5 to 10 year plan. This does not need to be your dream home, but the greater the growth you achieve (in addition to your savings of course), the closer you will be to that dream home with your next purchase, or may be the one after. This is difficult at the best of times, and especially for first home buyers when interest rates are high and house prices are through the roof. As best you can, limit yourself to the concessions available to save money and buy in the areas which are most likely to appreciate. There is plenty of information available online suburbs and regions and price movements – do your homework. Be patient, get good advice and buy well. This is a most difficult time in terms of housing affordability, but first home buyers are still achieving some fantastic outcomes. Good luck and reach out if you need help.