Why Queensland first home buyers should beg or borrow (or grovel to their parents) to get into the market
By Chris Pullen
First home buyers across southeast Queensland have the best chance in a long while to get into the property market at present.
That’s because they can potentially get their hands on nearly $65,000-worth of grants and concessions to buy or build a new home.
Those sort of cash handouts sure weren’t around in my day!
First up, there’s the $15,000 First Home Owners Grant to build or a buy a new property valued up to $750,000 in Queensland.
Plus, there are first home owner stamp duty concessions for properties priced up to $500,000, which is a saving of up to $8750.
If that wasn’t enough, the First Home Loan Deposit Scheme means that first-timers could potentially buy a property priced up to $475,000 with a deposit as low as five per cent and pay no Lenders Mortgage Insurance or LMI.
That is another potential saving of about $15,500!
Now, there is also the HomeBuilder program, which provides grants of $25,000 for the construction of a new home over the next six months or so priced up to $750,000.
Add all these figures together and there is potentially nearly $65,000 on the table for would-be property owners here in Queensland.
Now you might understand why the title of this blog includes begging, borrowing and groveling to your parents!
First rung on the ladder
Even with all these grants and cash savings dangling in front of you, it’s important for first home buyers to not get overly excited.
What I mean by that is that they shouldn’t over-extend themselves financially, just because they can get their hands on up to $65,000 in grants and concessions.
Would-be homeowners need to remember that their first property is very unlikely to be their forever one.
What it is though is the first rung on the property ladder, which they can leverage from in the future to upgrade or grow their property portfolio.
My first property was a three-bedroom townhouse in Parkwood on the Gold Coast, it wasn’t flash but it was all we could afford at the time.
Today, after trading up over the years, I live in a house on the top of a hill with spectacular views.
The truth of the matter is I would never had been able to afford it as my first home but I could many years later because I did what was needed to get on the property ladder back then.
Lenders are borrowing to first home buyer applicants using these grants, who can also show a savings history, including some money for a deposit, depending on a number of variables.
So, potential first homeowners in Queensland have never had a better opportunity to get into the market in my opinion.
The thing is, buying your first property has always involved making some temporary sacrifices.
But with tens of thousands of dollars in grants or savings currently on offer, why wouldn’t you give it a crack?