Boban John
Securing your dream home in a competitive market demands a multifaceted strategy that encompasses financial strength, market savvy, and expert guidance. In such environments, characterized by high demand and limited property availability, prospective buyers need to be proactive and well-informed to stand out from the competition.
Financial readiness is a cornerstone of success. This involves more than just having a deposit; it requires a clear understanding of your borrowing capacity and having pre-approval for a home loan. Utilising online tools like home loan borrowing power calculators can be beneficial. Furthermore, first-time home buyers should thoroughly investigate the array of government schemes and grants designed to ease the financial burden of entry into the property market. These initiatives can significantly enhance your purchasing power.
Several schemes under the Home Guarantee Scheme, such as the First Home Guarantee (FHBG) and the Regional First Home Buyer Guarantee (RFHBG), enable eligible buyers to purchase a home with a deposit as low as 5% without paying lenders mortgage insurance (LMI). For the FHBG, up to 35,000 guarantees are available each financial year from 2024 to 2025. The RFHBG specifically supports those buying in regional areas, with 10,000 places available from July 1, 2024, to June 30, 2025. Eligibility for these guarantees typically involves income caps and property price thresholds, which vary by location.
State-based programs also offer substantial assistance. The First Home Owner Grant (FHOG) provides a lump sum to eligible first-time buyers purchasing or building a new home. For example, Victoria offers $10,000 for new homes under a certain price limit. Similarly, stamp duty waivers or concessions can result in significant savings. In Victoria, first home buyers may be exempt from stamp duty on properties purchased for under $600,000 or receive a concession for properties between $600,001 and $750,000. The First Home Super Saver Scheme (FHSS) allows first-time buyers to withdraw voluntary superannuation contributions, plus associated earnings, to help fund their purchase. It’s crucial to understand the eligibility criteria and release conditions for this scheme. The Help to Buy Scheme, set to launch in 2024, will see the government co-purchase a home with eligible buyers, potentially guaranteeing up to 40% of the equity for a new home. The 2024 to 2025 Federal Budget continues to emphasize housing affordability through initiatives like the Housing Australia Future Fund (HAFF), aiming to support the construction of 1.2 million homes over five years.
In a competitive market, engaging a buyer’s agent can provide a significant advantage. These professionals act solely in your interest, offering services such as sourcing off-market properties, conducting thorough due diligence, providing objective property assessments, and expertly negotiating on your behalf. With many properties being sold quickly or even off-market, a buyer’s agent’s network and market knowledge can be invaluable. Their negotiation skills can potentially save you thousands of dollars. While some first-time home buyers may perceive a buyer’s agent as an unnecessary expense, their ability to expedite the process and access more opportunities can outweigh the cost, especially when considering the time and stress saved. The demand for buyer’s agents is growing in Australia, reflecting their increasing value in navigating complex markets.
Finally, staying informed about market trends and acting swiftly are crucial. While increased listings might offer more choice, strong demand can still lead to intense competition. Being prepared to make timely decisions, having a clear understanding of your priorities, and working closely with your financial and property advisors will significantly increase your chances of securing your dream home in a competitive market.
