Brighter Buying

First home buyers winning with 2020 incentives

by Kate Watt, Marketing Manager 3 September 2020

First home buyers have hit the jackpot with incentives this year, in combination with record low interest rates, the boost has helped first timers jump onto the property ladder up to 4 years earlier on average.

This week, the National Housing Finance and Investment Corporation have reported on the first round of the Government’s First Home Loan Deposit Scheme (FHLDS) that was launched in January 2020.

The scheme is designed to help out buyers to purchase their first home with a deposit of as little as 5 per cent of the value of the property.

10,000 places were released in January 2020 for the first round and an additional 10,000 opened up from July 1 for the 2020-21 financial year.

In the first round of allocations, 2263 places went to NSW residents, 1845 to Queenslanders and 1617 to Victorians.

By the end of June, 6814 recipients had either signed a contract or settled their home, while 3186 were still at the loan pre-approval stage and still hunting for a property.

Just under two thirds of First Home Buyers chose to buy in major cities, while the remaining 37.7 per cent went for regional areas.

For those who bought in major cities, more than half were between 15-30kms from the CBD and less that 25 per cent were within 15kms of the CBD.

Around 70 per cent of buyers using the scheme purchased detached houses, 25 per cent purchased apartments and 5 per cent purchased townhouses.

Planning your first steps on to the property ladder? Contact us for a chat and view our current listings for sale.