Metricon’s Regan 24 Elk design, which is suitable for first-home buyers. Image: Metricon
Housing affordability is one of the greatest challenges facing first-home buyers.
But the dream of home ownership is not beyond their reach, according to many new-home builders who have developed specific house designs and offers to lend support to first timers.
Despite the economic stress caused by COVID-19, Melbourne’s volume builders have noticed a renewed enthusiasm among the buying group.
Burbank national general manager of residential housing Louis Sultan said the company saw a 10 per cent jump in sales to first-home buyers during the first pandemic peak, compared with the same time last year. This was mostly driven by record-low interest rates.
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The Carter 234 Jubilee house design by Burbank. Image: Burbank
“There has also been a fourfold increase in foot traffic at our displays since the federal government announced the HomeBuilder grant in June, compared to the (previous) month, and actual sales have doubled,” Mr Sultan said.
The $25,000 grant is on offer for those building a new home valued between $150,000 and $750,000, provided the contract is signed before December 31 and construction starts within three months of the contract date.
“First-home buyers are right in there, taking advantage of the grants already on offer, as well as this new incentive,” Mr Sultan said.
Here are some of the best offers and initiatives that help first-home buyers navigate what can often be a daunting process.
Anne-Marie Shenouda and Joseph Hanna have bought a turnkey new build through Simonds’ new business segment, Start Point. Picture: Simonds/Start Point
SIMPLE IS SMART
A turnkey house is a no-fuss option many first-home buyers will find appealing as with this style of home, there’s literally nothing left to do but move in.
Simonds Homes chief strategy officer Troy Gorton said Start Point Homes — a division of the Simonds Group — allowed eligible buyers to secure a turnkey home with no deposit.
Australian residents who can show their current financial records, including proof of income, are eligible to apply for the offer.
Purchasers can choose from 11 designs in three- and four-bedroom floorplans that offer up to two living areas.
“The zero-deposit option would help first-home buyers past the deposit hurdle and provide them with a refreshed approach to financing a home,” Mr Gorton said.
Buyers also don’t have to make repayments during construction.
The style of home Ms Shenouda and Mr Hanna bought through Simonds’ Start Point.
“It suits those who have secure employment, can demonstrate good finance habits and (have) a clean credit rating,” Mr Gorton said.
Anne-Marie Shenouda and Joseph Hanna (pictured) are among the dozens of buyers building their home through Start Point using the zero-deposit option.
“It was initially daunting to think about buying a new home in a land development community,” Mr Hanna said.
“But our Start Point consultant made it so easy and took time to walk us through each part of the process.”
The builder is also helping first-home buyers into the market via its Start Point Savings Plan, which provides financial coaching on saving a deposit.
Start Point’s Explorer facade with the Flax floorplan and the Solis colour palette.
BREAKING BARRIERS
The vast amount of information first-home buyers have to digest when starting out is often a barrier, according to Mr Gorton.
“Dealing with different points of contact for each aspect — finance, house and land — can be a deterrent and cause stress,” he explained.
At Start Point, buyers work closely with a consultant through the finance application, land settlement and construction, right through to handover.
“This approach really simplifies the process and provides a great level of support and guidance,” Mr Gorton said.
He felt the company’s budget-first approach would ensure first-home owners had a clear understanding of their position and what they could afford from the very start.
Start Point’s Odyssey facade with the Quinoa floorplan and the Zain colour palette.
THE FULL PACKAGE
Henley Properties Group chief executive Antony Blackshaw said the fixed price was one of the advantages of buying a house-and-land package, particularly for those on a strict budget.
“There are no hidden surprises,” Mr Blackshaw said.
Henley has titled land available for house-and-land options at its St Claire estate, in Wollert, so buyers can start building straight away. The company also works with developers at other estates across Melbourne to match some of its most popular designs with suitable blocks.
A townhouse is another good option for first-timers.
Metricon offers a three-bedroom townhouse starting from just $350,900 for first-home buyers who are eligible for any government housing grants.
Metricon’s Lawson 22 Elk design, which is suitable for first-home buyers. Image: Metricon
BE FLEXIB
LE
Often first-home buyers start looking to build in areas they want to live, rather than
areas they can afford.
But it was important to be flexible about location, Metricon’s HomeSolution sales and brand manager for Victoria, Glenn Cooper, said.
“Otherwise, it can draw out the process,” he said.
Metricon offers free Build Smart First Home Buyers webinar information sessions, which aim to help buyers better navigate the process.
Part of Dennis Family Homes’ Aspirations range, which is priced for the first-home buyer market. Image: Dennis Family Homes
HOUSE DESIGNS TO CONSIDER
Escape range by Arden Homes
These fully rendered homes feature premium finishes, an architect-influenced floorplan, pre-designed mood boards to simplify the selection process, a $10,000 bonus from the builder towards the cost of your home, and a washing machine, dryer and fridge. House-and-land packages start from $450,000.
Aspirations Series by Dennis Family Homes
Customers can choose upgrades to best suit their lifestyle. Spend $1990 and get up to $15,000 on single-storey homes or spend $2990 for up to $20,000 on upgrades on a double-storey home.
Swift Collection by Burbank.
This range includes five of the builder’s most popular designs, each redesigned with a ready-to-go floorplan, facade, colour scheme and fit-out for a streamlined planning and building process. House-and-land packages start from $430,000.
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