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 loan. Speak with a mortgage broker in your area to get started.
Read the full source article for this blog here.