Current Challenges Facing First Home Buyers
As one of the leading first home builders in Western Australia, we understand that buying your first home isn’t easy. Even with the first home owners grant and the recent raft of stimulus grants that have been released this year, it can still feel like the whole world is against you.
While access to tens of thousands of dollars in cash grants is undoubtedly a good thing, the current market conditions have created new obstacles for first home buyers looking to build in WA.
We understand some of the key challenges that currently being faced by buyers are:
- Struggling to find and secure vacant land;
- Being turned away from builders not taking on any more clients; and,
- Satisfying the timeframe requirements for the purposes of receiving a new home grant.
If this all sounds familiar, don’t panic!
In this blog post, we’re going to examine these challenges in-depth and explain how we can help you overcome them and finally get into your first home.
At First Home Buyers Direct, we're still here and open for business, so we can get you into your first home when you've been turned away by other builders.
Land Availability and Securing a Block
If you plan on building, the first step in buying your first home is finding the right block of land to build on. However, since the introduction of the new State and Federal grants, interest in land sales has increased drastically and land prices have gone up.
Graph showing Perth land sales volumes and median prices for September 2015 to June 2020 Source: www.reiwa.com.au/the-wa-market/perth-metro
First home buyers that are hoping to find a block and build a residential property would be wise to secure their land as quickly as possible to avoid disappointment (as a result of not being able to find available land or no longer being able to afford a block due to it having gone up in price).
When it comes to building a new home, the approach taken should be:
- Securing your home finance,
- Finding and buying your land.
- Building your house
To secure a block, a seller will require proof of finance via a letter of eligibility from a broker which confirms the buyer’s borrowing capacity. A small deposit will also need to be paid, usually around $1,000 - $2,000, but sometimes up to $5,000 in the case of a private seller.
The issue here is knowing whether your budget is enough to cover both the purchase of the land and the cost of building a home. If you’re making a deposit on a block of land, the deposit is likely to be non-refundable so it is important to know that the land price is something that fits within your budget.
Before securing land, as a first home owner it is wise to seek the assistance of a house and land specialist who will support you through the entire building process. Your house and land specialist will work closely with your broker and any land sellers to ensure that all aspects of your purchase are insync.
They will be able to:
- Guide you through breaking your budget down, allocating an amount for your land purchase, house build and any other associated costs;
- Assist you in locating and securing a block which suits your requirements as a first home builder (and does not have any outrageous costs associated with it due to it being a problematic site); and,
- Help you choose a home design which suits your block and fits within your budget, structuring you a house and land package which is not going to cause concerns and valuation issues with the bank.
The good news is we happen to be the kind of house and land specialists that can help you do all of the above.
We currently have a range of fantastic house and land packages Perth available that can take the stress and hassle out of securing a block and building a house, so click here to contact us.
Being Turned Away by Builders
Have you contacted a builder only to be told that they don’t want your money and are unable to help a first home buyer like you? You’re not alone.
The list of WA building companies that have closed their doors for the remainder of the year continues to grow as the weeks pass. This is happening due to such a large influx of sales on the back of the new home grants being announced.
Builders in Western Australia will have been closely monitoring their sales volume each month and assessing whether they have the infrastructure and resources to be able to manage the number of new builds they are taking on and within the timeframes that are required for buyers to receive the government funding.
Here at First Home Buyers Direct, we’re still open for business and taking on new clients. Our robust systems are already scalable and adaptable to current market conditions.
We are, however, continuing to monitor our sales volumes on a monthly basis to ensure we do not over commit and jeopardize any of our clients ability to access the government grants.
Securing First Home Buyer Finance
Even if you do manage to find an available block of land and a builder that can help you take advantage of the various first home buyers grants on offer at the moment, it's all for nothing if you're unable to qualify for a home loan.
Given the challenging economic conditions facing Western Australia at the moment, many first home buyers find themselves struggling to save enough for a home loan deposit. The good news is that you definitely don't need a 20% deposit to qualify for a home loan.
Our in-house finance partners at First Home Buyers Direct have a range of low deposit home loans on offer that make the process a whole lot easier and more accessible than you might have thought.
Don't let your lack of a home loan deposit stop you from accessing the first home owners grant and other stimulus grant offers that can give a huge boost to your dreams of getting into your first home. Click here to find out more about our great home loans and other first home buyers finance options.
Take Advantage of this Amazing Opportunity
If you are interested in taking advantage of this once-in-a-lifetime opportunity and finally get into your own home in Western Australia, get in touch with us as soon as possible. We’re here to assist you in kickstarting the process and giving yourself the best chance of finding the perfect home and land package to suit your needs.
Click here to get in touch with us today.
Posted by First Home Buyers Direct on 15 October 2020 | 0 comments
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