The 'Great Australian Dream' isn't impossible for Canberra's first homebuyers

Despite a climate that suggests property is moving out of range of first homebuyers, experts agree there are affordable options in Canberra for that first step up the property ladder.

That’s if first-time buyers are willing to adjust their sights from a home on a block in the suburbs to higher density apartment living.

All Homes data scientist Nicol Powell says Canberra is Australia’s third-most expensive city behind Sydney’s median house price of $1,151,565 and Melbourne’s $843,674.

Dr Powell says the challenge of saving an initial deposit still often stood between buyers and their first property.

“Wage growth is weak, house prices and rental costs are on the rise,” she says.

“People have to juggle living costs while trying to save. It’s really difficult,” she says.

Powell says first homebuyers’ long-held ideas of the style of their first home might be out of reach, but there were other options.

“Many may have their sights set on a three or four-bedroom home on a traditional block, but it might be timely to consider other dwelling options first, like apartments,” she says.

Master Builders’ Association ACT executive director Kirk Coningham agrees a consumer rethink might be necessary in the face of rising prices.

“The quality of high density living developments have changed dramatically and it’s now a really viable lifestyle option for first homebuyers,” he says.

“You’re buying into a high level of amenity, proximity to a hub – like Braddon, Woden or Belconnen, and access to a vibrant community.”

Coningham says part of the equation for first homebuyers is to clarify how they want to live and work and to then examine the options.

“No one is suggesting it’s easy, but – by the same token – it’s not all doom and gloom,” he says.

His counterpart at the Housing Industry Association, Greg Weller, agrees different thinking is required.

“Back in the day, people bought a home in the middle of a block and then gradually added to it over the years,” he says.

“I think that may have set up an expectation in their children they would follow suit, but times and the market have changed.”

Weller says alternate options need to be considered including, perhaps, buying a first property – like an apartment – and renting it out while continuing to live with parents.

“There are ways and means of getting onto the property ladder if you are prepared to think laterally.”

Independent Property Group’s executive director of project marketing, Wayne Harriden, says there are opportunities in different segments, depending on budgets.

“We’re certainly seeing plenty of activity from first homebuyers who are getting on with finding a solution, despite all the commentary,” he says.

“If you look at a development like Trilogy in Woden – some 50 per cent of the purchasers were first homebuyers.”

Harriden says the key to success is in making a decision (to get onto the property ladder) and then settling on a saving program that shows the ability to put money away.

“We see people doing it time and time again. Once they make a commitment, inevitably, they stick to it,” he says.

Harriden’s advice: study the market, get on property mailing lists and be the early bird.

“Most new developments will have a number of units at entry prices that represent fantastic value – that’s why it pays to know what’s going on.”

Tips for first home buyers:

Commit: Make up your mind that you want to buy a home and set a savings plan. Stick to it.

Research: Understand what’s available in your price range and where. Find a finance lender. Do your homework.

Budget: Resist the bells and whistles of home inclusion extras – you’ll be paying them off for 30 years.

Case study: First home buyer steps on ladder with Republic purchase

Luisa Solar. Photo: Dion Georgopoulos

Luisa Solar works as a property manager with a Turner-based real estate firm. She says her exposure to the rental market on a day-to-day basis convinced her that property ownership was the way ahead.

The 23-year-old has bought a one-bedroom apartment in Republic in Belconnen, off the plan.

“It’s very exciting. I’m looking forward to moving in and setting it up with my own sense of style,” she says.

Luisa currently lives with her parents in Cook. Her father works as an architectural draftsman and suggested she consider Geocon developments, like the Republic.

“I really like that it’s a whole precinct. It’s going to bring in cafes, restaurants and be a bit like Braddon,” she says.

She exchanged on $1000 and needs to save a 5 per cent deposit, about $14,000, with the balance due in September.

“I started saving about five months ago and haven’t had to adjust my life too much,” she says.

“I cut back on interstate visits to friends and any other travel is off the wish-list for the time being.”

Belconnen’s latest development promises a distinct Republic

Republic in Belconnen.

Higher density dwellings are not unusual features of the Canberra landscape, but Republic in Belconnen promises to be something very different.

The Geocon project is being designed as an entire precinct and will include five buildings across a 1.6-hectare site that will deliver 1300 apartments. There will also be some 10,000 square metres of retail and office space and a 130-room Abode hotel.

Geocon promises the precinct will also feature a live performance theatre, an urban park and other public spaces and that it will “bring people together, day and night to live, work, shop and play”.

The precinct has been designed by renowned Fender Katsalidis Architects, who believe the Republic masterplan will add a new dimension to one of Canberra’s busiest town centres.

The $700 million investment will be the largest since Canberra Airport.

One-bedroom units in Republic begin at $282,900, two bedrooms from $419,900, and three from $779,900 with agents saying these prices are up to 15 per cent lower than comparable properties.

Construction begins later this year and is expected to be completed in October 2019.

Republic, Belconnen
Edmonstone Place
Price guide: $282,900-$859,900
Agents: Luke Revet and Matt Nicholls, 1300 979 757, Independent Property Group
Inspect: Sales gallery, Ground floor, 120 Eastern Valley Way (Wayfarer Building), Belconnen, open Monday-Sunday (except Tuesday), 10am-4pm
See more: goo.gl/8Nkf3m