BUYING YOUR FIRST HOME

 From several conversations having been had with worried parents about how their kids are going to be able to buy their first home whether that be an apartment/villa/townhouse or a house.

The Western Suburbs is pretty much out of reach for a "house" for those 18+ persons until they get to about 35ish and have a double income unless their parents give them a helping hand - which many are currently doing.

If the kids are staying at home saving that's a huge help in itself, if they are out their renting of course that is going to be a lot more challenging as with the rising property prices, the deposit gap that seems to be widening all the time, let alone trying to save whilst paying rent which is increasing - phew that's a lot to chew on alright,

What is needed if you are really serious you have to do some strategic planning (go see a broker and develop a plan) you have to be financial disciplined (so no uber eats, rides, concerts etc. the money eaters) it will be possible for you to get into your first property it's just accepting what you need to do to get there.

Back in my day when the wages were a lot less, the homes were a lot less also, it's all relative I suppose, however I just feel that the Western Suburbs has become too expensive that you won't be aiming for a house more a villa / unit / townhouse which is still under the million. (gee that's hard to say).

After the weekend's home opens, I did suggest to a young first home buyer (25 yo) that she set her sights perhaps on a two-bedroom apartment her budget was $700k. There's no need to go up to that value of course however it's best to get a two bedroom as you can rent the room out to help you pay the mortgage off. If you want the Western Suburbs this is what you will have to adjust to - the worst house in the best street!!!  

Over the years people have had to change their way of thinking as the affordability slips away from most people. 

Mortgage insurance kicks in if you don't save between 10-20% of the property value, so you need to have a good deposit to secure yourself better loan terms.

You also need to set yourself up a budget to cover for the stamp duty (if you keep it under the first buyers price range there will be nil, however they keep changing the amount so it's hard to keep up) settlement fees, moving costs and of course the on-going home ownership expenses like water rates, council rates, strata fees.

• Are exempt from paying stamp duty on homes valued up to $430,000.
• Receive concessions on homes valued between $430,001 and $530,000.
• The home purchased must be used as a primary place of residence.
• The concession rate is $19.19 per $100 or part thereof above $430,000.

So at that rate of $430,000 you will be lucky to get a one bedroom in the Western Suburbs.

Building for your deposit:

FHSSS - first home super saver scheme - this government initiative allows for individuals to make voluntary contributions to their superannuation fund, which can later be withdrawn for a home deposit. The tax benefits make this a great way to save faster (please check with your financial advisor on this one) 

Reduce your subscriptions, don't dine out too often, definitely don't buy beers at $17 a schooner (Rottnest) the quickest way to spend a few hundred dollars. Just by going to the footy you can drop a couple of hundred. The cost of going out man it's so expensive.

Set up a direct deposit into a separate savings account - if you don't have it in your main account, you won't see it to spend it.

Do you have wealthy grandparents, perhaps they can assist you in helping you with a deposit. If you are really serious about buying a property you have to explore all options and let's face it if you prove that you are genuinely saving, then more than likely your grandparents might come to the party or your parents depending on their situation also. In today's market you have to get real and get real fast and make a plan otherwise it may just slip passed you.

There's no doubt about it, today's generation of first home buyers are truly challenged but it's not impossible if you really want it.

Also, something to consider is to buy something and rent it out after 6-8 months of living in it and move back home (your parents may not be too happy ha ha) but you don't always have to live in the property that you purchase - one thing is for sure you need to do it NOW.

No one has the crystal ball so will property continue to go up, I believe so as Perth everyone is wanting to come here.

MAKE YOUR OWN DECISION AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!