First Home Buyers - More Assistance Announced This Month
First Home Buyers – More Assistance Announced This Month
This month the Federal Government announced a $10.5 billion First Homers Owners Boost package designed to help first home buyers get into home ownership for the first time.
The Boost package will supplement the NSW State Government’s First Home Owners Grant by doubling the existing $7,000 bonus to $14,000 for the purchase of existing homes. In an effect to stimulate the new housing sector, the grant is being tripled for the purchase of new homes or to build a new home, up from $7,000 to $21,000.
This cash injection, coupled with zero stamp duty (when purchasing a property under $500,000), will hopefully provide the financial assistance first home buyers need when struggling to save for a property deposit.
The lack of rental accommodation and the subsequent increase in rent caused by demand has seen a growing number of first home buyers get disenchanted with renting and look at purchasing their own piece of real estate.
While formal figures are yet to be released about how the grant has affected the purchasing decisions of first home buyers, we have noticed there has been a slight increase in enquiries from. While the recent drop in interest rates has provided welcome relief to existing home owners, the predicated further rate drops should be the inspiration that first home buyers need. While the grants and zero stamp duty help first home buyers by assisting them in the struggle to save enough for a deposit, it may not be until rates drop further that they will have the confidence to sustain mortgage repayments in the long term.
A survey recently undertaken by Mortgage Choice uncovered that the average age of first home buyers is now over 40 and many are purchasing alone. Fifty percent of the people who responded to the survey claimed that interest rate rises and the ability to afford repayments was their major concern when it came to purchasing their first home. Rising rental costs was one of the main reasons why most couldn’t afford to buy.
In time we will see if the Federal Governments boost package will provide the added assistance first home buyers have been crying out for. Perhaps it won’t be until interest rates drop further before they have the confidence to take the leap.
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Strata Living – Does Your Apartment Building Need A Facelift?
When it comes to selling real estate, you only get one chance to make a first impression. Usually this statement is reserved for people selling houses but in fact it can apply to unit blocks as well. While it’s paramount the inside of your unit presents at its best, the street appeal of the block itself can be just as important. For instance, rubbish scattered around the grounds, unruly gardens and a general state of disrepair will give buyers the impression that the block is being mismanaged and the value of common property not preserved. Ultimately, unit prices fall and the overall amenity of the block decreases.
In cases like this, some property owners may be too timid to express their dissatisfaction or make suggestions about improvements for fear of being overruled by more dominant (or stingy) members of the body corporate. What must be remembered is that the common property is ‘owned’ by all the unit owners so everyone has the right (and the responsibility) to ensure it is being maintained and looked after.
If the owners are hesitant to approve large improvements, there are small things that can be done by the residents themselves that will instantly (and cheaply) lift a tired, old unit block. Ask around if other residents are interested in spending a weekend in the gardens pulling weeds and undertaking a general tidy up. This may inspire other residents to clean up their carports and balconies at the same time. Hold a common garage sale so people can get rid of junk and do the cleanup around the time the council cleanup is coming.
One area that often just requires a little TLC are the letterboxes. Letterboxes brimming with discarded advertising material and old newspapers look messy and untidy. If residents are seen to set an example by clearing away rubbish every time they check their mail, others may follow suit.
Entry foyers are another area of the common property often overlooked by complacent residents. A simple sweep or vacuum once a week will keep the foyer clean and tidy while the additional of pot plants either inside or outside the door can transform the area.
Opportunities can exist for astute buyers who have the initiative and drive to take on the job of transforming a run down unit block. Some older unit blocks have plenty of funds available in their sinking fund to undertake improvements but simply lack good management from the body corporate. When purchasing a strata unit the buyer’s conveyancer will undertake a strata search which will show how much money is in the sinking fund. Large scale improvements such as brick rendering, replacing balconies, new floor coverings in the stairwells, etc, can significantly increase the value of each unit, well and above the cost to undertake the works. If financial statements can be presented to the owners indicating just how much value these improvements will add, they may be less hesitant to reject such a proposal.