The Struggle Is Real For First Home Buyers - SPI Property Inspections

The Struggle Is Real For Melburnian First Home Buyers

Melbourne

 

As a potential First Home Buyer (FHB) and/or a parent with children, you may feel discouraged by media reports about the ability for younger generations to ever own their own home. The barrier for entering the property market remains incredibly strong and hard to overcome for many Australians, the younger generations in particular.

Saving for a house deposit is the first step towards owning your own home but it can also be one of the most challenging stages. First Home Buyers Australia co-founder, Daniel Cohen, states that when it comes to buying your first home, “the hardest part between now and the 1980s, is the deposit savings.”

Young investors that are thinking about their future are also facing another distressing question: should I go to university or buy a house? As we already know, it’s hard enough to save for a deposit thanks to the rising house prices and market demand but now the current generation of investors are required to factor in huge HECS-HELP debt. It’s a tough period for young people to go through.

On a brighter note, there are other ways FHB’s are starting to actively enter the market. The rise of the ‘rent investor’ is becoming more common with many FHB’s purchasing an investment property before they buy a home. In this scenario, younger generations are purchasing an investment property in more affordable areas and renting in desirable locations where they can’t afford to buy. “Rent-vesting” provides some flexibility in where FHB’s live, giving greater opportunity to travel and grow their wealth at the same time. So yes, there is a struggle, but there does appear to be some hope for FHB’s in our evolving real estate market. Perhaps, it just takes some progressive thinking to make your break into the property world.

 

Some links for FHB’s to visit for further information:

First Home Owner Grants: http://www.firsthome.gov.au/ State Revenue Office Victoria: https://www.sro.vic.gov.au/first-home-owner

Homebuyers Centre: https://vic.homebuyers.com.au/first-home-buyers-first-home-owners-grant

Home Loan Experts: https://www.homeloanexperts.com.au/mortgage-calculators/first-home-owners-grant-calculator/