Buying your first home doesn’t have to break the bank, and you don’t have to stray too far either.

A Closer Look at Melbourne

First-home buyers looking to stay within 30km of the CBD aren’t in over their heads. Even though the Domain House Price Report (March Quarter 2018) places Melbourne ‘s median house price at $914,518, affordable and desirable property options still exist. Even better, first-home buyers can be eligible for a FHOG (First Home Owner Grant) on top of a first home buyer duty exemption or reduction, provided that their first home or unit is between the value of $600,000 to $750,000.

If you’re looking for a bigger property than an inner-city unit, the outer-suburbs of Melbourne are a valuable choice. Just a couple train stops down the track gives you all the necessities of a desirable first-home and more, with houses going for less than $600,000 (inclusive of first-home buyer duty concession) within 20km from the CBD. Take Preston as a great example. A 2-bedroom character home with a spacious outdoor area perfect for a first-home buyer with plenty of room for a family down the track can sell for $550,000. Another great aspect is it’s only 11km away from the city, making it a sought-after property for the first-home buyer.

Feeling a bit adventurous? Further down the line are home to plentiful opportunities to purchase a first-home for a significant discount when compared to outer-suburbs around the Melbourne CBD. Geelong is a prime example of how a little extra commuting goes a long way for first-home buyers. Just less than 10 minutes from the Geelong train station Belmont displays an attractive median house price for a 2-bedroom home at $470,000, far less than the cheaper homes around Melbourne. Another major benefit of moving in to these regional areas is the increased FHOG of $20,000 (full list here), which is extremely beneficial to those looking to get the first-home of their dreams at the most affordable price

A Closer Look at Sydney

As for Sydney, Property Data estimate the cost of homes on the affordable side only 30km away from the CBD to be around $690,000, which allows first-home buyers to benefit from the FHOG and stamp duty reductions. Heckenberg, resting 30km out of Sydney CBD is a calling card for first-home buyers who want to invest smart for the future, with 3-bedroom homes with a large backyard for a family in the not-so-distant future. The price of these homes are a major attraction as well, with properties of the same characteristics selling for $579,000 to $629,000, well below the $690,000 benchmark. Purchasing property at this price range allows first-home buyers to take full advantage of government incentives as well. With a duty exemption on homes valued upto $650,000 (and duty concessions up to $800,000 at a reduced amount), and a $10,000 FHOG available for homes valued between $600,000 and $750,000, outer-suburb Sydney is perfect for those looking for the greatest deal on homes closest to the CBD.

Not only are opportunities rising in both Melbourne and Sydney, but for all of Australia as well. with house prices falling for 11 months in a row, There is quite possibly no better time for first home buyers to put a proper plan in to action and start saving.

Let’s run the math, say you’ve got your eye on a potential first-home for $600,000 on the outer-suburbs of the Melbourne or Sydney CBD. Already you’re saving $31,0701 thanks to the stamp duty exemption, and the FHOG will most likely shave off $10,000 from the initial cost of your home.

Where to now?

Saving for a house deposit can be overwhelming. However, we’ve created Smart Home Deposit to help people save faster using the power of investment returns and automated regular deposits. We take into account the price of your first-home, the monthly deposits you are willing to invest and your initial savings and provide you with numerous investment options that suit you and your individual needs. Then, when you’ve reached your deposit goals we can organize a loan for you to buy a place of your own. Feeling more confident about your first-home goals? Head over to Smart Home Deposits and let us lead you on the best path toward your first-home.

1 As of 1st of July 2017 (current period)

Properties detailed:

Want more information on government benefits for first-home buyers?

  • First Home Owners Grant: visit here
  • Stamp Duty exemptions and concessions:
    Victoria: visit here
    New South Wales: Visit here – A New Way to Save