First Home Buyers

First home buyers take note

FIRST home buyers have never had a better time to enter the south-west real estate market.

News by the State Government to cut stamp duty for all eligible first home buyers by 50 per cent over the next four years, plus the lucrative First Home Buyers grant have provided an added kick start .

Combined with interest rates being put on hold this month, first time buyers can look forward to picking up a home without being crushed by a hefty mortgage.

Portland Seaview Real Estate director Allan Barrett said south-west buyers could pick up a three-bedroom home for well under $200,000 in today’s market.

“We are so lucky in the south-west market. Our homes are still relatively cheap and we have a growing job market with new industry arriving in the region,” he said.

“The growing tourism market, wind farms, port, agriculture – the region is looking good. It has never been a better time to invest and get out of the rental market.

“Average rent prices for a three-bedroom home almost match minimum mortgage repayments for an average Portland home. It makes sense to invest in local property market, which is continuing to go from strength-to-strength.”

The median Portland home price is just $245,000 – a bargain compared to Melbourne which has broken the $600,000 barrier.

Median Melbourne prices have soared $330,000 in the past decade.

Geelong is among the state’s most expensive with latest Real Estate Institute of Victoria figures showing the median price skyrocket to $379,750.

Mr Barrett anticipates Portland’s prices will follow in years to come.

“Being on the coast we will experience these price increases. They have already started to happen. Only a 10 years ago you could pick up a solid brick veneer three bedroom home in a great street for $150,000 – today you are looking at paying at least double that figure,” he said.

“First home buyers will watch this growth continue with their first homes.”

First home buyers are currently eligible for $7000 under the Victorian grant scheme.

An additional $13,000 is available for building a new dwelling and $6500 regional bonus for the purchase or construction of a home in the south-west.

This financial boost will be further strengthened by the new stamp duty cuts which will provide first home buyers with huge savings.

For example, on a home that costs the buyer $450,000, the current stamp duty payable is $18,970. From July 1 that will drop to $15,176 – a saving of almost $4000.

Discover how easy it is to own your own bricks and mortar with the Portland Seaview Real Estate team.