What first homebuyers must know about getting a home loan

What first homebuyers must know about getting a home loan

Thinking about getting a home loan for the first time? You probably want to know what incentives are out there.

  • In Western Australia, first homebuyers receive up to $10,000 when building or buying a new home valued up to $750,000 (in most areas).
  • Those who purchase established homes receive $3,000.
  • Before September 2013, first homebuyers received $7,000 across the board.
  • So why the change?

Getting a loan to build is encouraged

  • New first homebuyer grants are meant to improve WA’s economy.
  • How? By boosting the residential construction sector.
  • The state government introduced the grants during WA’s economic downturn.
  • At this time, housing demand had lowered in response to slow population growth.
  • Residential vacancy rates were more than 4% - among the highest in Australia.
  • As a result, property prices in WA stagnated.

The rest of Australia

  • Not all states followed in WA’s economic footsteps.
  • In Sydney and Melbourne, demand for property still exceeded supply during the 2013 WA downturn.
  • Unlike WA, prices in these 2 states did not stagnate.
  • Today, properties in Sydney are selling faster than any other state.
  • Homes spend an average of 27 days on the market.
  • Units spend an average of 26 days on the market.
  • This contrasts with the past 10 years, when Sydney lagged behind the rest of the country in terms of average price growth.

What does this mean for first homebuyers?

  • Building or purchasing a new home enables you to take advantage of more incentives.
  • This is true for all states and territories in Australia. For a complete rundown on first homebuyer grants, head here.
  • In the past, only about a quarter of first homebuyers purchased or built a new home.
  • First homebuyers in WA are now choosing to do just that.
  • The state government’s new incentives have a lot to do with this trend.

Capita Finance Solutions assists first homebuyers across Australia with getting a home loanSpeak with a mortgage broker in your area to get started.

Read the full source article for this blog here.