Many believe that interest rates and house prices have made buying a first home unachievable in most Australian cities – without help from the Bank of Mum and Dad at least. But if you know where to look and what to buy – and you’re prepared to compromise a little – it can be done.
A recent report by LJ Hooker identified Melton in Melbourne’s west as an affordable option for first home buyers, with a median house price of $478,500 and a median unit price of $374,750, as at May 2024.
For an option closer to the city the report suggests units and townhouses in Brunswick, just 5kms north of the Melbourne CBD, offer affordable buying for first home buyers at a median unit price of $555,000 to May 2024.
It’s important for first home buyers to get professional advice, to do their due diligence, and to think about compromising in order to get their foot in the door.
In a recent interview Wendy said, “it’s your starter house – you’re not going to live in it forever so get your foot in the door if you can.”
First home buyers often consider purchasing a unit or apartment, so Wendy suggests looking for older villa units rather than new multi-story apartment buildings which may have building defects such as flammable cladding or steep body corporate fees.
“A townhouse trumps an apartment every time. You’re buying a patch of land and you can make improvements to the property, such as putting solar panels on the roof or creating a beautiful courtyard entertaining space.”
If first home buyers are looking at greenfield areas, Wendy suggests getting house and land package contracts checked out by a legal professional. She also said that clauses can be added to house and land contracts to provide further protection for buyers.
But at the end of the day the most important thing for first home buyers is to buy within their budget and to buy well.
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