Latest news with #FirstHomeGuaranteeScheme
Sydney Morning Herald
6 days ago
- Business
- Sydney Morning Herald
The Sydney suburbs where home prices soared most last year
This comes as Sydney's property market rebounds, with the median house price rising 2.6 per cent in the three months to June to hit a record $1,722,443. The two cash rate cuts this year had boosted confidence and borrowing capacity, with the market anticipating another cut in August, Powell added. For units, homes in prestige areas made solid gains over the past year, as some buyers sacrificed space for location. Forest Lodge in Sydney's inner-city rose the most over the year, adding 31.6 per cent to hit a median of $1,225,000. This was followed by Kingswood, in the Penrith area, which jumped 24.4 per cent. The prestige coastal suburbs of Darling Point, Milsons Point and Rose Bay surged 23.4 per cent, 18.9 per cent and 18.2 per cent respectively. 'These are elite suburbs, but actually the unit price point opens up the buyer pool because it is a much cheaper price point relative to what a house would be in these locations,' Powell said. Megan Sayers, 40, who works in HR, said increasing rents, falling interest rates and a closing window for her to use the First Home Guarantee Scheme were a push to accelerate her search process earlier this year. Sayers bought her first property, a one-bedroom apartment in the apartment-dense southern Sydney suburb of Wolli Creek where unit prices are at a median of $788,000. After spending part of her thirties living and working overseas and returning to Australia from Japan in late 2018, Sayers feared she had missed the boat and may struggle to buy on a single income. Loading 'I never thought I would own a home,' she said. But after saving for five years, getting professional help and expanding her search area beyond inner Sydney, Sayers got the keys to her apartment in July. 'I had a good cry when I exchanged because I was just so excited that it finally happened. And I guess I just wake up every morning feeling so fortunate.' Wolli Creek is a high-density residential area a 20-minute drive from Sydney's CBD. In the year to June, 344 apartments sold in the suburb, but prices rose just 0.5 per cent, on Domain data. Some other suburbs with solid unit sales also recorded close to stable price growth or even declined. For example, unit prices in Zetland (393 units sold) and Rosebery (356 apartments sold), both in the inner city, fell 3.4 per cent and 0.5 per cent respectively over the year, underscoring how density can dovetail with affordability. Sayers' mortgage broker, Alcove national first home buyer specialist Jack Elliott, said the rate cuts were giving first home buyers confidence, with many clients considering homes on Sydney's outskirts. 'They're finding that unit, or that little townhouse, or it might even be further out to find a house that suits them and their needs for the future,' he said. Ray White Merrylands managing director Michael Azzi said the shortage of property for sale in South Wentworthville had helped to push up prices there. 'There's a section that's all virtually townhouses and duplexes, and there's a lot of them, and then there's a section that there's some very large homes and very big blocks of land. And together they are sort of booming,' he said.
The Age
6 days ago
- Business
- The Age
The Sydney suburbs where home prices soared most last year
This comes as Sydney's property market rebounds, with the median house price rising 2.6 per cent in the three months to June to hit a record $1,722,443. The two cash rate cuts this year had boosted confidence and borrowing capacity, with the market anticipating another cut in August, Powell added. For units, homes in prestige areas made solid gains over the past year, as some buyers sacrificed space for location. Forest Lodge in Sydney's inner-city rose the most over the year, adding 31.6 per cent to hit a median of $1,225,000. This was followed by Kingswood, in the Penrith area, which jumped 24.4 per cent. The prestige coastal suburbs of Darling Point, Milsons Point and Rose Bay surged 23.4 per cent, 18.9 per cent and 18.2 per cent respectively. 'These are elite suburbs, but actually the unit price point opens up the buyer pool because it is a much cheaper price point relative to what a house would be in these locations,' Powell said. Megan Sayers, 40, who works in HR, said increasing rents, falling interest rates and a closing window for her to use the First Home Guarantee Scheme were a push to accelerate her search process earlier this year. Sayers bought her first property, a one-bedroom apartment in the apartment-dense southern Sydney suburb of Wolli Creek where unit prices are at a median of $788,000. After spending part of her thirties living and working overseas and returning to Australia from Japan in late 2018, Sayers feared she had missed the boat and may struggle to buy on a single income. Loading 'I never thought I would own a home,' she said. But after saving for five years, getting professional help and expanding her search area beyond inner Sydney, Sayers got the keys to her apartment in July. 'I had a good cry when I exchanged because I was just so excited that it finally happened. And I guess I just wake up every morning feeling so fortunate.' Wolli Creek is a high-density residential area a 20-minute drive from Sydney's CBD. In the year to June, 344 apartments sold in the suburb, but prices rose just 0.5 per cent, on Domain data. Some other suburbs with solid unit sales also recorded close to stable price growth or even declined. For example, unit prices in Zetland (393 units sold) and Rosebery (356 apartments sold), both in the inner city, fell 3.4 per cent and 0.5 per cent respectively over the year, underscoring how density can dovetail with affordability. Sayers' mortgage broker, Alcove national first home buyer specialist Jack Elliott, said the rate cuts were giving first home buyers confidence, with many clients considering homes on Sydney's outskirts. 'They're finding that unit, or that little townhouse, or it might even be further out to find a house that suits them and their needs for the future,' he said. Ray White Merrylands managing director Michael Azzi said the shortage of property for sale in South Wentworthville had helped to push up prices there. 'There's a section that's all virtually townhouses and duplexes, and there's a lot of them, and then there's a section that there's some very large homes and very big blocks of land. And together they are sort of booming,' he said.
7NEWS
10-07-2025
- Business
- 7NEWS
First home buyers: how to save a 5 per cent deposit in six months for a $600k home
The countdown is on for first-time buyers hoping to enter the market with as little as a 5 per cent deposit, thanks to upcoming changes to the federal government's First Home Guarantee Scheme (FHGS). From 1 January 2026, the program will relaunch with expanded eligibility, opening the door to many more would-be homeowners, including scrapping income caps and opening the FHGS to permanent residents and joint applicants who haven't owned property for some time. How is the First Home Guarantee Scheme changing? The revamped FHGS will continue to allow eligible buyers to purchase a property with just a 5 per cent deposit, while the government steps in to guarantee the remaining amount, removing the need for costly Lenders Mortgage Insurance (LMI). This means if you plan to buy a $600,000 home, you'd only need to front a $30,000 deposit. But beyond the low deposit, there's some pretty significant shake ups. The government is scrapping the income cap: buyers are no longer restricted by income thresholds. Previously, this was capped at $125,000 for a single and $200,000 for joint applicants. Come January, there will also no longer be a property price cap. Purchase price limits will be removed, subject to lender assessment. And finally, there is now extended eligibility: individuals who have not owned property in the past 10 years, including permanent residents, can apply. A great opportunity, with a caveat Personal finance expert at Finder, Sarah Megginson, says the scheme is a game-changer, but buyers need to act now to get their finances in order. "This plan will give all first-home buyers access to 5 per cent deposits when buying a home, making the prospect of home ownership far more realistic for some who want to enter the market," she said. For example, if a property costs $850,000, a buyer needs to save a deposit of $42,500. "Without this plan, they would also need to fork over a huge sum for Lender's Mortgage Insurance, which could be upwards of $20,000." But Ms Megginson also warns that property competition will heat up even more. "All first-time buyers will have access to this, so it enables a large number of people to buy a home, but does nothing to address supply," she said. "A policy like this creates a lot of demand - which could see property prices in the affordable range increase, as first-time buyers battle each other to get into the market." Your six-month saving window: Strategies to save $30K If you want to hit the ground running when the scheme relaunches in January 2026, the next six months is your window of opportunity. If you're on the average Australian salary of $100,000, your purchasing power sits around the $600,000-mark, meaning you'll require $30,000 for a 5 per cent deposit. Ms Megginson says the key to building a $30,000 deposit quickly is breaking it down into smaller, manageable milestones. "Saving $30,000 sounds like a massive mountain to climb, but smaller financial goals are easier to achieve and as you tick each one off, it gives you the momentum to keep going." You're aiming for $5,000 per month, and to understand your personal financial picture, there's no way around creating a budget. "Tracking where your spending is going is key to plugging those money leaks," says Ms Megginson. "Take a look at your spending and split it into 'nice to have' and 'need to have'. Anything in the 'nice to have' category is a contender to cut back on." Here are some more strategies to get serious about saving. Move back home While it won't be possible for everyone to take advantage of the privilege of moving home, if you have the ability to move back in with your parents or another family member and stop paying rent, you should absolutely take it. Rents skyrocketed over the past few years, with Australia experiencing its longest stretch of continuous rental price growth in history, far outpacing wage growth. No matter which way you slice it, rent takes up the biggest proportion of would-be homeowner salaries, keeping renters in a vicious cycle where they're unable to make headway on a house deposit despite demonstrating the financial ability to pay the equivalent of a mortgage. Removing rent from the picture is undisputedly the way to turbocharge savings. "It's short-term pain for long-term gain. It can help you save a fortune on rent and other bills to fast-track your savings goal," Ms Megginson said. If you're in Sydney, for example, this one move could save you between $1700 and $3250 a month on rent alone, if your rent sits between $400 and $750 per week. House sit or change rentals If that's not an option, and you mostly work from home, consider house sitting as a rent-free alternative. While it can be tricky to line up house sits perfectly, and the extra admin of applying for sits and then caretaking animals can be stressful, it's a creative way to stop paying rent (or even take a break while living with your parents). The other option is to reduce your rental footprint by either sharing with more housemates, or changing rentals to a smaller property or more affordable area. Trim your lifestyle spend No one wants to go without their little luxuries, but remember, it's only for six months. "Really, it's about looking at your overall lifestyle spending," said Ms Megginson. "If you're serious about saving, you need to catch public transport instead of Uber, and stop getting food delivery altogether - it's seriously so expensive and so much cheaper to buy takeaways without the Uber premium. Eliminate any 'buy now pay later' accounts, too." Subscriptions are the other place to look. If you're signed up to three or four different streaming services, for example, it's time to cull it down to one. You can even change that one platform every month or two, rotating through them all and catching up on shows. But Ms Megginson is also quick to point out that this doesn't mean cutting out everything fun. "Make sure you're not living off 2-minute noodles and stripping all the fun from your life! You don't have to sacrifice all the things that bring you joy. "Just be mindful with your spending, so that when you invest in lifestyle extras - like takeaway coffee, a gym membership or Sunday brunch - you're spending on something you really enjoy, not just spending out of habit." Evaluate and renegotiate your bills Take stock of your household bills to ensure you're not overpaying for everyday services, from energy and health insurance to mobile phone plans. "Finder has a Financial Fitness Challenge that runs through this process, where the average person without a home loan can save around $4,000 per year by comparing their household bills and getting a better deal," said Ms Megginson.
Yahoo
08-07-2025
- Business
- Yahoo
Couple's $800,000 problem as rate cuts fuel property frenzy: 'Not even competitive'
Mortgage holders were disappointed by the Reserve Bank of Australia's (RBA) decision to keep the cash rate on hold this week, but there's a silver lining for property buyers. Aussies had been facing stiffer competition for homes as recent cuts gave more people the confidence to enter the market, pushing property prices higher. Ashleigh Pullin, 28, and her partner James Mashiter, 37, have been looking to buy their first home since April but have found themselves outbid by predominantly older buyers with more cash at hand. They anticipated more interest rate cuts in July would continue to put upward pressure on property prices. The Melbourne couple told Yahoo Finance they received pre-approval for a $760,000 home loan with a 5 per cent deposit after spending five years saving up a deposit. 'We've put in four offers in total since that time and all of them have been unsuccessful,' Pullin said. 'You get very disappointed because you see the house you put an offer in then goes for another $30,000, $40,000 over, and you're not even competitive.' RELATED Tough way Aussie couple saved $60,000 to buy first property Commonwealth Bank, Westpac reveal major payment change for millions of customers CBA, NAB, ANZ reveal $200,000 move borrowers making after RBA interest rate cuts The couple plan to buy through the federal government's First Home Guarantee Scheme, which allows eligible people to buy with a 5 per cent deposit and avoid lenders' mortgage insurance. The scheme means they are subject to an $800,000 property price cap, which they say is also hampering their ability to compete. The couple said they felt pressure to get into the market now before further RBA interest rate cuts push up property prices further. While the RBA held the cash rate steady this week, it signalled rates could be lowered in August should inflation remain on track. 'We were looking at places that were four-bedroom, two-bathroom and two garages and that was comfortably within what we could afford, it was going for $760,000 to $790,000,' Mashiter said. 'Now we're struggling to find a three-bedroom place with two bathrooms. Anything with two bathrooms has gone over $800,000 every time. 'It's been a significant change in what you can afford just over the last couple of months.' Pullin said the couple may need to keep moving further out towards the Yarra Ranges and Dandenong Ranges if prices continue to brokers Loan Market reported a 53 per cent year-on-year increase in pre-approval numbers following the RBA's February and May interest rate cuts. Since the start of the year, the group found that someone earning $120,000 per year would have seen their borrowing capacity increase by $27,000. Melbourne-based mortgage broker Jacob Decru said buyer sentiment had improved quarter on quarter and the fear of missing out was building among buyers. "Owner-occupiers in Melbourne feel the market has bottomed out and further interest rate cuts are going to lift prices,' he said. "There are more buyers wanting to purchase now, but fewer properties on the market compared to last year.' Ray White data found new property listings in May were 11.8 per cent down across the country compared to the same month last year. Australian housing values rose by 0.6 per cent in June, according to Cotality, marking a fifth straight month of growth. This upswing began in February when the RBA first started cutting interest rates, with expectations of further cuts providing more support. REA Group senior economist Anne Flaherty said the decision to hold the cash rate may "slow the pace of price growth seen in the months following the February and May cuts". AMP chief economist Shane Oliver said he expects the RBA will take a more gradual approach to easing, with the next cuts forecast for August, November, February and May. "The more gradual pace of easing could have the effect of moderating the upswing in the property market in the near term," he said. The bank revised its home price growth forecasts to 5 to 6 per cent from around 3 per cent, but Oliver said the risks to this could be back on the downside. Pullin said the couple was now doing everything they could to make themselves more attractive to sellers, including writing them personal letters. "We just need to try and get in now," she in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
20-04-2025
- Business
- Yahoo
RBA interest rate warning over cost of living cash splashes as likelihood of supersized cut fades
An expert has sounded the alarm over the election promises being put forward by the two major parties. AMP chief economist Shane Oliver said he's been "surprised" and "flabbergasted" over how deep Labor and the Coalition are digging into taxpayers' pockets. Billions of dollars have been promised on things like tax cuts and better housing schemes, with Aussies set to have more financial power to beat the cost of living. But Oliver fears this could have an unintended impact on inflation and interest rates. "I can't recall an election where there's just been so many sugar hits rolled out," he told Channel 9. RBA chief's major call on supersized interest rate cut in weeks: '$181 in our pockets' ATO confirms $1,380 tax change for millions of Aussies who work from home: 'Updated' Rare 50 cent coin worth 80 times more: 'Keep your eyes out' "It's a bit like Easter eggs, they're really, really nice, but they're not particularly good for us. "There is a big risk here that that will lead to higher spending down the track and could add to inflation. "So that's obviously something the Reserve Bank (RBA) will have to take account of when considering what to do on interest rates." Headline inflation is currently at 2.4 per cent, while underlying inflation is at 3.2 per cent. The next quarterly data is due at the end of April and will give a much bigger picture of how Australia's battle against inflation is terms of housing, Labor has promised to expand the First Home Guarantee Scheme, which allows first-home buyers to purchase a home with just a 5 per cent deposit. The Coalition wants to allow a first-home buyer to deduct mortgage interest payments from their taxable income. The policy would be available for the first $650,000 and only for newly built homes. For taxes, both parties have announced a slew of measures to ease the burden on millions of Aussies. Labor and the Coalition want to allow small businesses and tradies to be able to instantly write off at least $20,000 in expenses through boosting the instant asset write-off tax break scheme. Anthony Albanese has proposed a "modest" income tax cut, as well as an automatic $1,000 tax deduction that all workers will be able to claim. Meanwhile, Peter Dutton wants to halve the fuel excise for a year, which could reduce petrol prices by 25 cents a litre. He's also promising a temporary tax offset of up to $1,200 for low and middle-income earners who take home less than $144,000. There have also been pledges to spend billions on Medicare, more energy rebates, nuclear reactors, and HECS debt reductions. Yahoo Finance contributor Stephen Koukoulas hit out at some of the election promises that have been dished out by Albanese and Dutton so far. "The proposed 12-month cut to the petrol excise is arguably the most egregious example of stupid policy in the current election campaign: it is expensive and it achieves nothing in the path of reform," the economist said. "It would be just as dumb giving each taxpayer a one-off income tax refund of $1,200. Oh, that useless policy is being proposed as well." He echoed Oliver's fears about the long-term impact these cash boosts could have. "There is more than $15 billion from those two policies being burnt, adding to government debt and inflation with zero legacy for the structural betterment of the economy," he said. The RBA is heavily tipped to drop interest rates at the next meeting in mid-May due to the global uncertainty kicked off by Donald Trump's tariffs. All the Big Four banks are aligned on a May rate cut, however, NAB is the outlier in predicting a 50 basis point reduction. That would take the official cash rate from 4.10 per cent to 3.60 per cent. However, the ASX Rate Indicator calculation shows the probability of a supersized rate cut is fading. On April 9, which was in the middle of the Australian and global share market meltdown due to the tariffs, the ASX Rate Indicator had a 100 per cent rating for a 50 basis point drop next month. In the days since, that belief has fallen from absolute certainty to just 62 per cent on April 17. "It's unlikely that we would see much risk for a 50 basis point between now and May," ANZ senior economist Adelaide Timbrell told Yahoo Finance. "50 basis points has never been our core. We've always thought it was more likely to have 25 basis points. "50 is looking further and further out partly because the Reserve Bank meets eight times a year. So if this is a medium or longer-term risk, they do have a little bit of time to assess that risk before making a decision on the interest rate."Sign in to access your portfolio
