All The Changes To Grants First Home Buyers Need To Know
In This Week's How's The Market | Edition 46
All The Changes To Grants First Home Buyers Need To Know
A Sentiment Shift From Vendors?
An Indoor Pool In The Mountains
All The Changes To Grants First Home Buyers Need To Know
To address the housing affordability crisis, the Federal Government has announced in the budget and over the last month an expansion of the Home Guarantee Schemes. The eligibility criteria for the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee will all be widened. Additionally, permanent residents will be able to access the schemes.
From July 1st 2023, the First Home Guarantee and Regional First Home Guarantee schemes will be open to friends, siblings, and other family members who wish to jointly apply. Moreover, the schemes will now be available to non-first home buyers who have not owned a property in the past 10 years.
The Family Home Guarantee criteria will also expand to include eligible single legal guardians of children, such as aunts, uncles, and grandparents, in addition to single natural or adoptive parents with dependents.
Under the Home Guarantee Scheme, the federal government will act as guarantor on up to 15% of a loan for the First Home Guarantee and the Regional First Home Guarantee, and up to 18% for the Family Home Guarantee. This allows eligible home buyers to purchase a home with a deposit as low as 2% without the need to pay lenders mortgage insurance.
In addition, permanent residents are now eligible for all three guarantees alongside Australian citizens. However, while the government has increased the value of properties eligible for the scheme, experts caution that there are still risks involved for prospective buyers.
What The Agents Are Saying
The sentiment shift is starting to take place amongst vendors as the top of the market gets good results.
Over the last month, we have seen more activity and great results at the top of the market.
When speaking to agents, they are typically stating that the top of their individual marketplaces is what they see as performing the best. Newly built or renovated houses in good positions.
Vendors and potential sellers are also seeing these results.
After a couple of great auctions that produce results above vendor expectations, many vendors think that they should also list their properties for auctions and agents have been able to sign up more listings for auction campaigns.
We are hearing of multiple auctions that have already been pencilled in for July & August dates.
In some southeastern suburbs stock is already beginning to rise with some offices I’ve spoken with going from 10 listings in Mar to 20 in May with half of their listed stock still being off-market.
The Wow Factor!
120 Olinda-Monbulk Road, Olinda, Vic 3788
It’s not often you see a rock pool built inside a house, but it’s even more rare to see one built inside a house built in the 80s on 3.7 acres in the Dandenongs!
In The Media
Tamarama 1920s bungalow sells after being listed for $50 million
Some more evidence the top of the marketplace is performing quite well.
This property, whilst the sale price wasn’t disclosed has been said to have sold towards the bottom of the range which was $47m.
Final Thoughts
Newly built and renovated homes are performing substantially better than unrenovated properties in this market and vendors are beginning to notice the results and the shift in the media.
It appears that more properties will be coming onto the market over the next few months and that many will transact off-market during this time.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is my opinion, please seek your own expert advice when making decisions.
