Mum’s the word:
Single Mothers benefitting from Family Home Guarantee Scheme
31% of First Home Buyers bought in regional areas
The big shift to Australia’s regional areas is continuing unabated as buyers look for affordable homes and lifestyle opportunities now that flexible ‘work from home’ employment conditions have become a standard option post COVID-19.
Australians are still keen on home ownership, and even though prices have surged 26% in the regions, lower median house and unit prices in regional centres compared to capital cities means that the population shift to attractive lifestyle destinations such as south-east Queensland is likely to continue.
Increases in interest rates will mean that those who have borrowed to their limit may need to sell. This cohort of property owners may also consider a move out of a capital City to ensure their next home purchase is within their means. With recent cost of living increases, regional locations which can provide services, jobs and a healthy economy will be the big winners.
Buyers have been willing to move further away from their existing residence to buy their first home. Average distance moved was between 30km and 90 km. Under the First Home Loan Deposit Scheme (FHLDS) 37% of buyers purchased in regional areas and 31% of the entire first home buyer market purchased in regional areas with Gold Coast, Toowoomba, Logan-Beaudesert and Ipswich featuring in the ‘top ten postcodes’1.
Family Home Guarantee
In addition to the First Home Guarantee, the targeted single parent family housing scheme - the Family Home Guarantee - supports eligible single parents with children to buy their first home or to re-enter the housing market with a deposit of as little as two per cent.
To date the scheme has particularly supported women and front-line workers with one in five guarantees going to essential workers, almost 35% of whom were nurses and 34% were teachers. Of the total guarantees, 52% went to women, well above the market average of 41% women, while 85% of Family Home Guarantees were taken up by single mothers.
Regional Home Buyers Scheme
The Regional Home Buyer Support scheme will provide 10,000 guarantees from 1 October 2022 to 30 June 2025, supporting eligible homebuyers including non-first home buyers and permanent residents to purchase or construct a new home in regional areas. Eligible buyers can purchase a home with a deposit as low as 5% and avoid paying Lenders Mortgage Insurance which normally applies when borrowing more than 80% of a property’s value.
Getting Assistance to find a Home
The previous Federal Government rolled over 4,651 unused grants from the 2021 financial year. The number of unused grants underlines the difficulty the average homebuyer has finding a suitable home.
Affordhome.com.auhas been established to assist homebuyers with their search for the right home at the right price in the right location. You can access free advice, purchase a package of detailed property appraisals, or order a full Buyer’s Agent Service to have professional support with the entire process of finding a home, negotiating the purchase price, and getting a home loan.
Having professional assistance can not only speed up the home-buying process, but it could also help save you thousands of dollars on the purchase price and essential repairs.
With house prices rising along with the cost of living, getting into the market can be difficult, stressful and time-consuming.
Give us a call today on 0447-738-593 or go to the website: https://www.affordhome.com.au to book a free telephone consultation.
1. National Housing Finance and Investment Corporation 08/10/2021, First Home Loan Deposit Scheme and new Home Guarantee, Trends and Insights Report 2020-2021)