Federal budget 2020: What first-home buyers can buy with the expanded loan scheme
First-home buyers looking to take advantage of the federal government’s raised price caps for the First Home Loan Deposit Scheme will still need to go to the outer suburbs in the capital cities to buy a house.
Tuesday night’s budget announcement revealed the scheme would give another 10,000 first-home buyers an opportunity to get into the property market across Australia with a 5 per cent deposit, but this time they would be required to buy a new home.
Caps on prices were also raised by as much as $250,000 and separate limits introduced for regional areas, in the hopes it would stimulate construction and bring about $800 million in economic activity.
What can first-home buyers get for their money in their city?
| Extended First Home Loan Deposit Scheme price caps | ||
| State/Territory | Capital city/regional centre | Rest of state |
| NSW | $950,000 | $600,000 |
| VIC | $850,000 | $550,000 |
| QLD | $650,000 | $500,000 |
| WA | $550,000 | $400,000 |
| SA | $550,000 | $400,000 |
| TAS | $550,000 | $400,000 |
| ACT | $600,000 | N/A |
| NT | $550,000 | N/A |
Source: Housing Minister and Assistant Treasurer
Sydney
In Sydney, a buyer could get a new home for the maximum spend of $950,000 in Oran Park, 45 kilometres from the CBD.
Meridian Homes saleswoman Jenny Watson said this price was for a display home in the south-western suburb, and that first-home buyers made up a large cohort of the buyers for her company.
“They’re always the same, but it’s just a bit of a struggle to get into a home now because prices go up and up,” she said. “It takes longer to save for a deposit.”
First-time buyers tended to stick to lower-priced homes near Oran Park, but would shell out more in other areas, she said.
“About $750,000 to $800,000 is the high range for our first-home buyers in the south-west,” Ms Watson said. “In the north-west they can buy the higher mortgages because they’re in better jobs.”
Other listings show new studio apartments for sale in the inner city for $825,000.
Melbourne
In Melbourne, a three-bedroom apartment is available to buy in Brunswick East at the price cap of $850,000.
The apartment on Brunswick Road is four kilometres from the CBD and is within walking distance of parks and shopping centres.
The B.E. development is due to be completed this year.
Going farther out of the city, buyers would be able to find a new four-bedroom home in Cranbourne for the same price.
Brisbane
Brisbane’s limit of $650,000 leaves plenty of options available for buyers, with the cap sitting above the median price of $583,000.
A new Stroud home in Lawnton, a suburb with public transport access to the CBD 23 kilometres away, comes in at just under $650,000. Similar homes were available in Caboolture and Narangba, too.
Stroud salesman Damien Torrens said first-home buyers faced competition in the northern Brisbane markets he sold in.
“We’re doing a bit of both, a lot of the first-home buyers getting the grant so that’s a big part of it. But then there’s a lot of people looking for acreage,” he said. “They’re not downsizing but retiring and getting a nice big home on a block.
Mr Torrens said the government incentives were encouraging buyers to get the most they could without exceeding price limits.
“We focus on the specced up and the not-so-cheap-and-nasty stuff,” he said. “We have more people doing better quality inclusions and higher ceilings.”
Canberra
Canberran buyers can get a two-bedroom unit in the city for under their price caps of $600,000, much like Melbourne.
A near-completed development at 20 Allara Street is listed for sale at $599,900 and is 200 metres from the city centre and across from the casino.
Tasmania
Hobart’s limit of $550,000 leaves few properties available when compared with other cities, but a buyer with that much to spend could land a townhouse in Claremont, nine kilometres from the city centre.
The three-bedroom homes are in the North Shore development and are priced between $495,000 to $535,000. The homes are on a peninsula jutting into the River Derwent and have water views.
Adelaide
In Adelaide, there is much to choose from under the prescribed limit of $550,000.
A new home can be bought on Bernards Road, Magill, for $533,253, with a three-bedroom, two-bathroom configuration. Magill is seven kilometres from the city.
Perth
Perth, similarly, has plenty for sale below its deposit scheme price cap of $550,000.
A new, three-bedroom house just across the Swan River from from the CBD in East Victoria Park is where buyers can expect to find a home for sale for $546,900.
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