Article Title: Way To Build Your Wealth Writer: Bonnie Bullock Published: 16 August in HOME Magazine, Sunday Times Homebuyers Centre Sales & Marketing Manager Jared Stone has six savvy reasons to build new and build now. With only weeks left until the Federal Government’s $21,000 First Home Owners Boost ends, West Australians who are considering building their first home need to act quickly and decisively.
Jared Stone, Sales and Marketing Manager for Homebuyers Centre, focuses on the most compelling reasons for first home buyers to transition from renting to building their own brand new home. 1. Interest rates are low Incredibly, interest rates are the lowest they have been for 49 years. The current Reserve Bank figure is 3 per cent, which translates into a variable interest rate from most banks of around 5.25 per cent. What’s more, there’s still room for another possible rate drop in the future. 2. The $21,000 First Home Owners Boost. There is still time to take advantage of the largest first home owner’s grant Australians have ever seen. And the good news is that it can be used as a home deposit with certain financial institutions, or as a lump sum to pay off debt. The grant will be reduced to $14,000 as of September 30 and then $7,000 by the end of the year, so first home owners really need to act quickly if they want to take advantage of the full amount. 3. No stamp duty First home buyers are effectively given an additional financial boost when it comes to stamp duty, as it doesn’t apply to blocks purchased up to $ 300,000. A partial rebate is available for vacant land valued between $300,001 and $400,000. What’s more, there is no stamp duty paid on a new home – a great perk for West Australians as this incentive is only available in our state. 4. Renting is dead money Anyone who has ever rented will know the downfalls - dead money, regular inspections, problem landlords and, in most cases, a ban on owning pets. And at the end of the lease tenants are left with nothing. In comparison, owning your own home – often for the same monthly cost as renting – means you can do what you want, when you want. You can decorate, you can garden and you can own a pet. You’re the one making the decisions, and at the same time you will own an asset that will increase in value over time, ultimately building you wealth. 5. Building vs buying second hand There are so many benefits to building, not least that you can choose the design of your home – and that includes the facade, the tiles, the paint, the colours, the floor coverings, even the landscaping. Not only is everything brand new, it also comes with structural guarantees, maintenance periods and warranties on appliances. 6. House and land packages are affordable. If you’ve done your research, you’ll know that house and land packages have never been so affordable. Builders have excellent offers available at the moment and land developers have a great amount of stock, which translates into good prices. All good news for first home buyers.