Golden time to buy home
Friday, 14th February, 2020
By Emily McInerney
The opportunity for first home buyers to jump into the market has never been better, according to a local real estate agent.
Century 21 McLeods’ Principal Matthew Handberg said they were seeing more in in the market thanks to the new federal government incentive.
“Rather than having 20 per cent for a deposit or using Lenders Mortgage Insurance (LMI), you only need a five per cent deposit.
“Then the government guarantees the rest of it.”
Mr Handberg said they can apply for up to $450,000 across NSW but there is a limit of 10,000 guarantees a year.
“Having LMI can add up on a loan that spans over 25 years.
“It can save you a couple of thousand dollars that can go towards your home loan.
“If you want to buy a comfortable home in Broken Hill for $200,000, a 20 per cent deposit would be $40,000 that needs to be saved.
“On top of everyday living costs it is a lot, especially if you are paying rent or house sharing.
“Or it might mean not being able to move out of your parents’ home.”
Mr Handberg said about a third of their sales had been to first home buyers.
“This federal initiative is bringing a lot more first home owners into the Broken Hill market,” he said.
“There is a little bit of urgency because there is a certain limit.
“People don’t want to wait. It’s been about a third of our sales this year.
“It’s really great to see because it gets younger people into the property market at an earlier age.
“Interest rates are the lowest they’ve ever been so timing is quite positive in that regard.”
People eligible for the incentive include single people earning up to $125,000 or couples earning up to $200,000 if they have saved 5 per cent of the value of the home.