7 factors to help first home buyers into their own home

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7 factors to help first home buyers into their own home
Universal Magazines

New Home Shop is a one-stop shop for those looking to acquire residential real estate. In particular we are keen to encourage and enable first home buyers into their own home

Why?

Property is a proven means to develop wealth. For generations of Australians, owning a home has been considered a logical and attainable goal. Parents of today’s generation of potential first home buyers have benefited from seeing their home values sky-rocket through the course of their ownership. They naturally aspire the same goal for their children.

While older generations see the benefits, the current crop of potential first home owners struggle to see a future as a home owner due to a variety of factors including:

Affordability

House prices have escalated well beyond wage growth. Continuing to avoid home ownership now makes it
ever harder as time goes on.

Attitude

Today’s generation tend to be more short-term focused than their parents. Flexibility in work and lifestyle is now a higher priority. This tends to obscure the need to aspire to longer term wealth generation. Those who have grown up in the more expensive inner suburbs tend to want to stay there. A reality check soon reveals that without outside assistance (i.e.: significant family financial support) this is most likely not an option.

The current generation tend to stay longer with their parents as they have no viable alternative. Renting is not always a viable option as rental demand is currently higher than supply. Landlords also tend to prefer older tenants.

Financial acumen

Millennials tend not to be as focused on personal financial planning. Budgeting is not a common discipline to a generation which has no qualms about spending $50 going out for a weekend breakfast. This would have been unimaginable to their parents who would have considered such spending as unnecessary and wasteful. These factors (among others) combine to make the initial entry into the housing market quite a challenge.

From a positive perspective, IF a young person can be given the opportunity to achieve home ownership this delivers a forced saving regimen. This in turn leads to other benefits associated with security, stability and… wealth creation.

New Home Shop fully supports the concept of home ownership and aims to assist young adults to enter the market. It does this via a range of measures which include:

1. Access to the right land

Land is extremely expensive (usually more than the cost of the house build), so to be able to pursue a house and land package combination with a lower land cost is a huge start. Blocks nowadays can be as small as
8.5x21m (178m2) lots. That’s a fifth the size of the old “quarter acre blocks” our parents built on. These smaller blocks provide an affordable means to acquire the necessary land to create a viable house and land package.

2. Home designs

NHS has a portfolio of smaller home designs which can be sited on these smaller blocks of land. We can, for instance, create a 4 bedroom home which can be sited on these small blocks.

3. Inclusions

Many companies only give you the option of no inclusions or all inclusions. We provide clients with an ability to choose only those they need. For example some clients are happy to move in and pour their driveway at a
later date. Subject to the rules of the particular estate, we can certainly accommodate such requests.

4. Finance

NHS has it own in-house finance capability. We can therefore meet with clients at their initial meeting to provide an indication as to their borrowing capacity. At this starting point we find it surprising of how many
people have no idea just how much they can borrow and what that can in turn deliver them.

5. Transparency

It is critical with first home buyers that no late price surprises appear which may then exceed the purchasers approved loan amount. Site costs are a common source of frustration with many builders simply throwing a
number at it which may be more than necessary. New Home Shop takes the time to advise on such matters so that there are no surprises.

6. Experience

We have plenty of experience with first home buyers and offer them what we believe to be good advice. We understand that owning a home isn’t the be all. Young people still need to be able to eat, go out, have
holidays, etc. after they’ve purchased a home. On that basis we do not try to have clients build a “McMansion”. We aim to provide valuable advice which is tailored to each clients requirements. Our aim is to have satisfied clients who return to us for their second home and beyond.

So, if you are considering investment in property but don’t quite know how to go about it, please speak to us.

For more information

New Home Shop

Publish at: , last modify at: 09/10/2017
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