ALAND welcomes first-home buyer support
First-home buyers can celebrate as the 5% deposit scheme is expanded
It’s no secret that breaking into the property market can be tough right now for first-home buyers. Soaring rents, low vacancy rates and rebounding property values make it a challenge no matter whether you’re hoping to rent or buy.
The good news is that the First Home Guarantee and its country cousin – the Regional First Home Buyer Guarantee have been expanded to cover a broader range of first-home buyers.
Both schemes allow first-home buyers in Sydney to get into the market with just a 5% deposit, and no Lenders Mortgage Insurance (LMI).
From 1 July 2023, the definition of a “couple” used in each Guarantee will be broadened from a married or de facto couple to “any two eligible individuals”. This opens up plenty of possibilities.
It means you could choose to buy a first home with a sibling, a cousin, or a likeminded friend.
Federal Housing Minister Julie Colins says these changes reflect the government “moving to meet the times” .
Andrew Hrsto, founder and director of ALAND goes further. He says, “These low deposit schemes will allow two people to buy a home together, and this can seriously boost their buying power.”
“By combining their resources, and buying as co-buyers rather than separately, these schemes allow friends or relatives to get into the market sooner, or buy a better property in a more desirable location.”
The First Home Guarantee and Regional First Home Buyer Guarantee do not involve cash handouts. The Federal Government acts as a guarantor for the borrower(s), allowing first-home buyers to buy a place of their own with just a 5% deposit while also bypassing the need for lenders mortgage insurance, which can be an expensive upfront cost.
Why first home buyers in Sydney should speak with ALAND
Any additional support for first-home buyers in Sydney is great news, especially as the property market is rebounding.
CoreLogic reports that apartments in Sydney recorded a 1.2% uptick in value in April, taking the quarterly price growth to 2.3%.
However, Mr Hrsto says that for first-home buyers taking advantage of the broader low deposit schemes, some forward planning can make the experience of home ownership more enjoyable.
“Money and mates can be an oil and water mix, so first-home buyers who are considering buying with a sibling or friend may want to consider having a co-buying agreement drawn up. This can formalise issues such as how the ongoing costs of the home are shared as well as providing a framework for situations such as one owner wanting to sell the home in the future while their co-owner wants to remain in the property.”
Mr Hrsto says it’s also a good idea for co-buyers to speak with the finance broking team at ALAND.
“Married and de facto couples tend to take out a joint home loan, but there can be a variety of options to structure a mortgage when you are buying a first home with a friend or relative. ALAND’s finance partners can explain the different strategies to help co-buyers make an informed choice.
“With the new definition of a couple set to kick off from 1 July, it makes sense for first home buyers to contact ALAND as soon as possible. Only 35,000 places are available per year across the First Home Guarantee, and it’s likely these spots will be keenly sought after,” adds Mr Hrsto.
Project Spotlight: Carson on the Park
With prices starting from $495,000, Carson on the Park has seen high demand from first-home buyers and investors.
Located on a one-hectare site in the heart of the St Marys town centre, the project is comprised of 289 one, two and three-bedroom apartments across four eight-storey buildings.
Carson on the Park is close to St Marys Village Shopping Centre and the popular 18-hole Dunheved Golf Club as well as an abundance of schools, shopping and medical facilities. The apartments will take in sweeping district views and vistas across the neighbouring parklands.
The development is within easy reach of the St Mary’s train station, as well as Parramatta Road and the Great Western Highway, providing good connection to key employment hubs like Penrith, Parramatta and Campbelltown
Construction is well underway with the project expected to be completed later this year.
With the new government schemes now in place, don’t hesitate to reach out to our team and secure your spot in this sought-after community.
Click here to learn more about the government incentives available.
For more information on Carson on the Park, visit: https://carsonstmarys.com.au/
