What You Need to Know Before Buying Your First Home

April 08, 2020

Just 20 kilometres from Perth’s CBD, Ellenbrook is a popular spot for first home buyers looking for an affordable, accessible entry point into the market.

And it’s little wonder when you consider what is on offer.

Why choose Ellenbrook as a first home buyer?

Whether you’re single, a couple or searching for your first family home, Ellenbrook is an ideal suburb for buyers trying to get their first foot on the property ladder. The suburb is just a 30-minute drive (approximately) from central Perth and a 10-minute drive from Swan Valley. There’s a variety of established properties as well as land packages available to suit different tastes, budgets and lifestyles.

This well-planned community is well connected to a range of established amenities and services. In addition to a vibrant town centre, locals enjoy easy access to schools, medical services and 155 hectares of parklands, as well as a local shopping centre and other speciality stores, restaurants, bars, cafes and recreational facilities.

A great time to buy

It’s no secret that Perth has experienced a long property downturn. According to CoreLogic data, prices have fallen 20% in the past five years. But with interest rates nationwide at an all-time low, there are some very good opportunities if you’re ready to buy. Given Ellenbrook’s central location and connection to services, it’s well-positioned to take advantage of an upswing in prices when it occurs.

Help for first home buyers

State and Federal government assistance for first home buyers make it easier to get into the market. They include :

First Home Owner Grant

The First Home Owner Grant (FHOG) is a one-off payment of $10,000 intended to encourage and support first home buyers who are buying or building a new residential property for use as their principal place of residence. Note that only one grant is payable per eligible transaction, so two people purchasing a house together will only receive one grant. A home that has been substantially renovated may also be considered a new home under the guidelines. The grant is not available for the purchase of an established home or for renovations to an existing home.

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Concessional stamp (transfer) duty

If you are eligible to receive the FHOG, or would be eligible except that you are purchasing an established home, you may also be eligible for the concessional first home owner rate of duty. In WA, the First Home Owner Rate of Duty provides exemptions and concessions when purchasing homes valued at less than $530,000 and vacant land valued at less than $400,000.

First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme (FHLDS) aims to help eligible first home buyers purchase a home sooner. Under this Federal Government scheme, part of an eligible first home buyer’s home loan from a participating lender will be guaranteed by the National Housing Finance and Investment Corporation (NHFIC). This can enable first home buyers to purchase a home with a deposit of as little as 5 per cent. The Scheme will support up to 10,000 loans each financial year, starting from 1 January 2020. It can be used in conjunction with the FHOG. Current property price caps for WA are $400,000 for capital cities and regional centres and $300,000 for the rest of the state.

Keystart Home Loans

Depending upon your income, you may also be eligible for a Low Deposit home loan with just 2% genuine savings and no lender’s mortgage insurance with Keystart Home Loans. The maximum purchase price for properties is currently $480,000. Low Deposit Home Loan limits as of writing are $105,000 for singles, $130,000 for couples and $155,000 for families. Buyers should check the interest rates, as they do vary from traditional lenders. But these loans are making the dream of homeownership more accessible for many Western Australians.

Talk to our expert team today if you need help planning the next stage of your property journey.

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