After a long and painful wait, conditions are now more favourable for prospective first home buyers to enter the Central Coast property market.
A combination of political, economic and social factors mean that first home buyers are no longer at the bottom of the rung when it comes to securing property in a highly competitive market.
Strong demand, reduced borrowing capacity and minimal experience navigating the complexities of the market mean that first time buyers are often pipped at the post by investors or mature buyers – they simply don’t have the finances to outbid the other players. Thankfully, recent changes have helped to level the playing field.
More property options for first home buyers
The NSW Government’s abolishment of stamp duty for first home buyers on new and existing homes up to $650,000, as well as discounts for purchases of up to $800,000, means that it is now much easier for prospective first-time buyers to get their foot in the door of a highly competitive market.
First home buyers can now consider older properties at more affordable prices, rather than brand new stock which attracts inflated purchase prices due to investor and foreign buyer interest.
Investors out, first home buyers in
Earlier this year, we also saw the Australian Prudential Regulation Authority (APRA) clamp down on investor lending and interest only loans, further restricting investor purchases at the expense of first home buyers.
Combine this with the fact that the Domain Group’s recent First home buyers Report has dubbed Gosford the most affordable spot in Greater Sydney.
Central Coast ripe for first home buyers
The Central Coast is becoming a popular alternative for first home buyers who have been priced out of Sydney.
Not only does the Central Coast have more affordable prices and a number of up and coming suburbs waiting to be gentrified, the region is well renowned for having a good stock of established homes available. Not to mention, we’ve also got a lifestyle that is second to none.
Gosford is the perfect example of a suburb that is primed for first home buyers. The city is currently undergoing a renaissance of sorts, having attracted the interests of major developers in recent years. Despite this, homes remain affordable with a median house price of just $412,500.
We are also seeing similar trends in the north of the Central Coast, with suburbs like Wyong, Canton Beach, San Remo, Charmhaven and Toukley all boasting affordable median house prices that are perfect for first home buyers looking to get into the market.
First home buyers should seriously consider these suburbs while they are still affordable, taking advantage of the recent lift on stamp duty and low interest rates.
Home loans for first home buyers
Family guarantees allow buyers who don't have their own funds for a deposit to access the equity in a parent or another close family member's house to help secure the loan.
To qualify for a family guarantee, the close family member - or 'guarantor' - must of course have sufficient equity in their home not only to make up the deposit shortfall on the new loan, but to continue to satisfy their own, existing loan arrangements.
To learn more about Family Guarantees and how they work read our article ‘How do no deposit home loans work?’
To ensure you have the best financing options available to you, it’s always beneficial to speak to an experienced mortgage broker, who can guide you through the complex process of securing a home loan.