Buying Tips

Four Fascinating Facts About First Home Buyers

Buying your own home has been the great Australian dream since the 1950s, but a lot has changed since then.

We take a look at today’s first home buyers.

1. How old are first home buyers?

The average age of a first home buyer in Australia is now closer to 40 than 20, research released late last year shows. Aussies are, on average, 36 years old when they buy their first home. The average age of first home buyers is, unsurprisingly, linked to the cost of housing. Property in Australia is expensive, and it takes time to save for a deposit and to be able to afford a home loan, and that explains why the average age of our first home buyers is rising. That said, there are always exceptions to the rule, like this fabulous story.

2. How many active first home buyers are there?

There are more first home buyers in the market now than we’ve seen in a long time.

Data released by the ABS in May shows that here in Victoria lending to first home buyers is at a historically high level. Record low-interest rates and government stimulus have driven first home buyer activity in a way that hasn’t been seen for a generation. The Victorian state budget papers, released in May, showed that across outer Melbourne and regional Victoria 78 per cent of property transactions since March 2020 were conducted by first home buyers.

3. Where are they buying?

The pandemic has created something of an exodus from capital cities across the country as people embrace remote working, and first home buyers were a big proportion of those embarking on a tree change.

Figures released in March showed a 3.9 per cent population increase here on the Surf Coast as people were drawn to our incredible lifestyle, including first home buyers. December figures from NAB showed a whopping 97 per cent jump in first home buyer lending in Armstrong Creek, and 56 per cent in Waurn Ponds, making these two Geelong suburbs some of the most popular for first home buyers in the country.

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4. What help is available to first home buyers?

The increase in first home buyer activity has been supported by government incentives, with new data from the Commonwealth Bank showing that Victorian first home buyers have been able to buy a house 4.99 years faster after accessing either a First Home Loan Deposit Scheme (FHLDS) or New Home Guarantee (NHG).

The so-called Bank of Mum and Dad – parents giving or lending money to their adult children to help them get on the property ladder – is also playing a big part, with recent research showing that parents are now the nation’s ninth-biggest mortgage lender.

Government first home buyer grants and concessions currently available in Victoria include:

  • First Home Owner Grant – a $10,000 grant available for buying or building new homes worth $750,000 or less.
  • First Home Loan Deposit Scheme – eligible low and middle income earning first home buyers who have a 5 per cent deposit can apply for this Federal Government scheme to guarantee them for a home loan. The New Home Guarantee is a similar scheme designed for building or buying new homes.
  • Family Home Guarantee – a new Federal Government scheme guaranteeing home loans for single parents who have saved a 2 per cent deposit, including (but not limited to) first home buyers.
  • Principal place of residence duty concession – available for first home buyers buying a new or established property up to $550,000 as their primary home.
  • Off-the-plan concession – a reduction in duty for eligible buyers of off-the-plan home and land packages, high or low rise apartments or refurbished lots.

Eligible pensioners, young farmers and first home buyers with families may receive additional duty exemptions or concessions from the State Government too.

Looking to buy your first home on the Surf Coast? We can help – get in touch today.