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REIV Releases First Home Buyers Guide
January 14, 2013
The Real Estate Institute of Victoria (REIV) has recently released a first home buyer’s guide which highlights the average weekly repayment required to buy houses and units classified by size across Melbourne, Ballarat, Geelong and Bendigo.
The guide is designed to help first home buyers to target suburbs and dwelling types according to their budget.
A helping hand for first home buyers
In one easy glance the map shows the level of weekly repayments needed for units of between one and three bedrooms along with houses with between two and four or more bedrooms. For example, it shows that the average weekly repayment for a 3 bedroom house in Werribee was $373 whilst a 2 bedroom unit in Reservoir required $496 per week.
The guide also shows that there were 133 suburbs in which a 3 bedroom house could be bought with a mortgage repayment of under $430 per week.
The average first home buyer mortgage repayment in Victoria during the September quarter last year was $414 per week and this is used as reference point.
The guide presents a realistic appraisal of the actual cost of buying by taking into account all the costs; conveyance fees, stamp duty and mortgage insurance. The benefits enjoyed by first home buyers; lower stamp duty and the First Home Owners Grant are also taken into account.
The guide also assumes the buyer has a 10 per cent deposit and an interest rate of 6.4 per cent.
As the data is based on median prices it is important to note that homes will be available for less and more than the median as it is simply the middle sale in the series.
The guide also takes into account the 30 per cent lower stamp duty paid by first home buyers.
Market conditions provide excellent opportunities for first home buyers this year, interest rates are at historical lows and prices remain below their peak.
The guide is available as a clickable map at http://www.reiv.com.au/Property-Research/First-Home-Buyer-Guide and it will be updated on a regular basis.
Note: this data is indicative only and is calculated based on a range of assumptions including the use of median sale prices. As a result properties will be sold for prices above and below what is used in the guide.