The first homebuyer demographic is one of the few sections of the real estate market that is quite strong at the moment, with people taking advantage of the increased first homebuyers grant and lower interest rates.
Price guide
Under $400,000
First Home Buyers Priorities
While people’s individual needs may differ, the basic requirement for a first homebuyer should be a property that will increase in value over time. Not a big problem according to real estate agent Paul Owen, ‘If you are looking at a long-term investment, I can guarantee you will make money on a property you buy today.
‘I know we’re going through a bust cycle at the moment but that will turn around, it always does.’
Not many people will stay in the first home they buy for the rest of their lives, so it is often seen as an investment or a stepping-stone and it is important to keep that in mind when choosing both the location and the type of property.
‘Outlying areas may be attractive when it comes to price, but sometimes these new suburbs take a really long time to gain value,’ says Owen.
Price is also a big factor in choosing a first home, according to agent Nikki Peinke. A first loan and a first mortgage is a big responsibility and people should make sure they don’t get themselves in deeper debt than they can afford.
‘I’m sure it happens but I can’t imagine anyone spending a million dollars on their very first home… unless they have just won lotto.’
Price Range Profile
In the inner city suburbs, most properties in the first homebuyers price range will either be apartments, units, villas or older style homes in need of renovation.
However, if you are willing to look further afield, house and land packages offer first homebuyers a chance to get a little more for their money.
Maureen Fowler is a real estate agent in Margaret River and says that buyers can find great bargains in the southwest.
‘There are a few developments down here that are offering building incentives and combined with the government grants, that’s great for first homebuyers.
‘The blocks are much bigger and you can build a four (bedroom) by two (bathroom) house within walking distance of the centre of town for well under $400,000.’
Renovations that make a difference
Because the first homebuyer usually has a limited budget, aesthetic renovations to the property are a great idea. New tiles in the bathrooms or new bench tops in the kitchen will make the property more attractive to first homebuyers, who may not have the additional money to renovate themselves.
‘That way they can borrow to the max and not have to spend any more money when they move in,’ says agent Pam Herron.
At the same time it is best not to spend too much on renovations to a house in this price range- for example, a the cost involved in installing $10,000 top-of-the-range oven or spa in a $250,000 apartment is unlikely to be recouped when it comes time to sell.
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