Five Great Reasons to Buy Your First Home

The Cornerstone Investment

Your home is your most important asset. It ranks among the most stable investments for future growth. If you make sure to only spend as much as you can afford to spend, and leave a small buffer in your calculations in case of rate increases, owning a property for even five years can provide significant capital gains.

It Costs Less to Buy than Rent

Rents have increased sharply, and in many places, the median monthly rental costs more than the median monthly mortgage repayment.

Stamp Duty Exemption

If you buy before 1st January, you can still receive a stamp duty exemption of up to $20,700 when buying your first home.

FHOG

Even without a stamp duty exemption, the First Home Owners Grant can provide you with $10,000 if you decide on building a new home and $3,000 if you go for an established one.

Timing is Everything

By all reasonable indications, the real estate market is primed for massive growth. The economy has improved, but the real estate market has lagged. There are a lot of people who couldn't buy houses in the last few years, suddenly finding that they now have the means to do so. Many in the business call this “pent-up demand.”

The RBA's rate is currently at an all-time low, and fixed rate loans are now being written at lower rates than variable rate loans. When you mix low interest with prices that haven't fully recovered from the last “trough,” and more people with enough money to buy, it's not difficult to connect the dots.

The bottom line: right now is a great time to buy your first home.