Five Ways to Break into the Housing Market
by Carlisle Homes
Breaking into the housing market is no mean feat, but we’re here to help. From government incentives to financial planning, these five tips are the most sure-fire way to become a homeowner.
We all know that owning your own home is worth it. Not only does having a place to yourself mean you can decorate and renovate it however you wish, it also means you’ll never have to submit to another rental inspection. Best of all, you can start building financial security.
Unfortunately, getting into the housing market is tough. You have to pull together a deposit, get loan approval and of course, find the right house for your needs. It’s a lot. To help you on your way, we’ve pulled together a brief guide on the best ways to break into the housing market.
Step 1: Access government incentives
The government recognises that would-be first homeowners face an uphill battle. Various government incentives exist to help eligible buyers:
Victorian Homebuyer Fund
If you are buying or building a residential property in Victoria, you may be able to access the Victorian Homebuyer Fund. The Fund is a shared ownership model – you put down 5% of the purchase price and the Victorian government provides a 25% stake. You therefore only have to secure a loan for the remaining 70%. To be eligible, you must earn less than $128,000 as an individual or $204,800 as a couple.
After securing the fund, you can either buy the government’s share of the property back by refinancing over time, or pay it back when you sell the property. You’ll share in any capital losses or gains, but you won’t pay interest.
First Home Owner Grant
If you’re building a new home, you may also be able to access the First Home Owner Grant (FHOG). This is a $10,000 payment towards the cost of the build. There is no income cap applicable – you can apply no matter what your earnings are.
Home Guarantee Scheme
The Home Guarantee Scheme allows eligible home buyers to buy with as little as a 5% deposit. You will need to take out a loan for the remainder, which will be up to 95% of the purchase. However, because it’s backed by the government, you won’t have to pay lenders mortgage insurance on top of everything else. Eligible single parents may be able to access the Family Home Guarantee instead, which allows for a deposit of as little as 2%.
Step 2: Head out to affordable suburbs
Inner-city Melbourne may be out of reach for most first home buyers, but there are still plenty of opportunities in the outer suburbs. Think leafy blocks, family-friendly amenities and realistic price tags.
Western suburbs like Lara, Truganina, Tarneit and Deanside are all an easy distance from the CBD, with commute times ranging between 40 minutes and an hour. They also have great bus and rail networks, along with parks, schools and sporting facilities.
And if you choose to build in one of these suburbs, try one of the homes from our EasyLiving series, with designs starting at less than $250,000!
Step 3: Choose a design that makes it easy
Our EasyLiving series is designed for buyers looking for more affordable home designs. They are the perfect starter homes, and fixed price contracts offer peace of mind – so there won’t be any nasty surprises down the track.
Carlisle’s six-step process will help you spread the cost. A $2000 deposit is all you need to get the ball rolling, so you’ll have extra time to keep saving.
Step 4: Develop a financial plan
If buying a house seems like a huge goal, try breaking it down. Developing a financial plan is essential to reaching your goals, and it doesn’t need to be scary.
Pay down your debts. Credit card balances, AfterPay and personal loans can all affect your borrowing power. If you have significant debts, paying these off should be first on your list – even before you start to save.
Track your spending and find ways to save. You may be surprised at how much little luxuries are costing you. UberEats, anyone?
Open a high-interest savings account. A term deposit can also be ideal, as these make it harder to access the money and help you reach your savings goals.
Step 5: Talk to the experts
There are a multitude of tips and tricks to help you get into your first home faster. From financial strategies to government incentives, house and land packages to home loan packages, it can be hard to keep across them all. Luckily, you don’t have to. We work with construction finance specialists who specialise in getting people into the home of their dreams and will help you access the help you need.
Ready to build? Get in touch with Carlisle Homes on 1300 520 914 to discuss your perfect new home design.