Why today is a great time to buy a new home
If you’re considering buying your first home, your next home or downsizing into something smaller, then now is actually a great time to be buying property as a first home buyer and owner occupier.
With lenders becoming increasingly stricter with their investor lending and tightening up on foreign lending, owner occupiers and first home buyers actually have a greater chance of getting a foothold onto the property market.
So, why is today a great time to buy a new home? Firstly, the Federal Budget has made some important changes which is set to aid first home buyers.
Use your superannuation towards a house deposit First home buyers from 1 July 2017 will be able to use their superannuation towards buying a home. They will be able to do this by salary sacrificing up to a maximum of $30,000 or $15,000 per year from their pre-tax income over the compulsory superannuation contribution. Funds placed here will be taxed at 15 per cent, whilst withdrawals will be taxed at 30 per cent below the marginal tax rate. This initiative is expected to help speed up the ability to save compared to putting your savings in a normal savings account.
First Home Owner Grants It pays to be a first home owner, especially in Queensland and Victoria. The Queensland Government have announced that the $20,000 First Home Owner Grant will be extended for another six months and will now end 31 December 2017. In Victoria, first home buyers who buy in regional Victoria can also benefit from the grant doubling from $10,000 to $20,000. However, those buying in Melbourne will still only receive $10,000 grant.
There are no changes to the First Home Owner Grant in New South Wales.
Stamp Duty Savings Another great reason to buy a new home today, is that first home buyers can also take advantage of massive stamp duty savings and concessions. In Victoria, from 1 July 2017, first home buyers will pay zero stamp duty on properties valued at $600,000 or less, whilst purchases between $600,000 and $750,000 will receive a concession on a sliding scale. This applies to both new and established properties and offers a saving of roughly $31,000.
In New South Wales, transfer duty is now abolished from 1 July 2017 for first home buyers purchasing new and existing homes up to $650,000. First home buyers will also receive a reduction in transfer duty on properties priced between $650,000 and $800,000.
Low Interest Rates Interest rates are still at a record low, making now a great time to buy a new home. It’s important though to keep in mind that interest rates are likely to rise, so you might prefer to go onto a fixed term loan instead of a variable one if you want to reduce your risk. It’s best to speak to a Mortgage Broker about your borrowing capacity first, and ensure that you buy a home that sits comfortably within your budget to avoid financial stress if interest rates do rapidly rise.
Supply and Demand Currently, there is a lot of supply coming onto the market, and many developers of off the plan projects are offering incentives to both owner occupiers and investors to help sell their properties. As a buyer of off the plan, this gives you some leverage and the potential to get more for your buck, whether that’s a free furniture pack thrown in or an upgrade to the inclusions package if you buy early enough. This makes today a great time to buy a home.
Rental Price Rises Recent data has shown that rental prices in Sydney have increased by $80 a month during May 2017. As properties become more expensive to rent, many people are turning to home ownership instead, where the monthly mortgage repayments are cheaper than monthly rents. If your rent is getting more expensive, then this might be a sign to own your own home instead.
House and Land Opportunities Right now, particularly across Victoria and Queensland there are some fantastic house and land opportunities available, catered towards owner occupiers and families. At iBuyNew, we have a number of new house and land packages to choose from with some really affordable entry prices whether you are looking at the Gold Coast or Sunshine Coast.
Our house and land packages are situated in ideal locations close to key amenities such as retail, schools, transport and hospitals. If you are seeking a spacious home with all the lifestyle requirements at your doorstep, yet still live within an easy commute of work, then house and land might be the right option for you.
iBuyNew is offering a great range of house and land packages, with four bedrooms homes starting at less than $400,000. Speak to one of our iBuyNew Property Consultants to learn more.
Get in Touch Buying your first home or next home is an exciting prospect, but it does require thorough research and homework to ensure that you are purchasing a home that offers great value and a solid investment for the future.
If you have saved up a 10 per cent deposit and currently looking for a new home, then it’s worthwhile speaking to iBuyNew. We have a broad range of new apartments, townhouses and house and land packages for sale throughout Australia at various prices to cater for your budget and lifestyle requirements.
Just remember, the earlier you buy a home, the better off you will be. The longer you wait to buy a home, the more expensive and harder it will become to get a foothold onto the property ladder and you might even become priced out of the property market altogether.
To find out more about purchasing a new home as a first home buyer or owner occupier then it’s best to get in touch with the iBuyNew team today. Call us on 1300 123 463 to learn why today is a great time to buy a new home.
Published on 17th of July 2017 by Marty Stanowich