- Unused guarantees from 2019/20 to be reissued by Federal Government.
- Fall in some housing prices mean more houses available under the maximum purchase price cap.
- Some inner city suburbs in Melbourne and Sydney now accessible following falls in house values.
It’s good news for first home buyers as the market and the government tango in favour of new home-owners.
CoreLogic recently reported that “Recent housing value declines are particularly prominent in major cities like Sydney and Melbourne,” which could mean some properties previously out of the grasp of aspiring home-owners are now within reach, especially as some properties fall below the maximum purchase price cap set for the First Home Loan Deposit Scheme.
The Federal government has pitched in support for first home buyers, recycling old unused guarantees from the previous round in 2019/20, reissuing them to potentially 1,800 buyers this year.
In data released by CoreLogic the suburbs that “have slipped below FHLDS thresholds” include the inner-west suburbs of Strathfield and Ashfield in NSW, popular with many university students, as well as a host of other suburbs around the Parramatta and Ryde regions. If you’re fond of the Rouse-Hill RSL, the suburb is also now under the price cap.
The inner-city suburbs of Melbourne also feature strongly, St Kilda East, Thornbury, and Brunswick making an appearance; even parts of Melbourne’s beating heart now under the price cap including Docklands.
Other suburbs slipping under the cap include South Brisbane in QLD, and Munster in WA, between Fremantle and Rockingham.
CoreLogic also reported that “established properties have historically favoured first home buyers”, few new properties being taken up using the FHLDS.