Remember your first house may not necessarily be your dream house. The most important thing for a first home buyer is to get into the market. Build some equity and then as your circumstances improve you will be able to purchase your dream home. The average house goes up in value by approximately $500 per week. Time is your enemy. If you want to save to buy your home you need to be saving in excess of $500 per week just to keep up with the capital gain. Rather than paying rent, why not repay your own loan and build equity. We can show you how.
A first home buyer can achieve better financial outcomes by constructing a house as opposed to buying an established home. That is because the costs associated with the purchase are lower, as you are only paying stamp duty on the land component and not on the construction which is stamp duty exempt. This can be a saving of around $10,000. Established homes, in the price range that a first home buyer usually can afford, require repairs whereas a brand new home will come with a three month full maintenance warranty and a lifetime structural warranty. In addition, you get to choose what your house will look like.