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ISCOVER
Staff Reporter
The Real Estate Institute of Victoria (REIV) has released a first home buyer’s guide which highlights the average weekly repayment required to buy houses and units.
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REIV chief executive Enzo Raimondo said the guide would help first home buyers target suburbs and dwelling types that are within their budget.
“In one easy glance the map shows the level of weekly repayments needed for units of between one and three bedrooms along with houses with between two and four or more bedrooms,” he said.
“For example, it shows that the average weekly repayment for a 3 bedroom house in Werribee was $373 whilst a 2 bedroom unit in Reservoir required $496 per week.
“It also shows that there were 133 suburbs in which a three bedroom house could be bought with a mortgage repayment of under $430 per week.
“The average first home buyer mortgage repayment in Victoria during the September quarter last year was $414 per week and this is used as reference point.
“The guide presents a realistic appraisal of the actual cost of buying by taking into account all the costs: conveyance fees, stamp duty and mortgage insurance. The benefits enjoyed by first home buyers; lower stamp duty; and the First Home Owners Grant are also taken into account.”
According to Mr Raimondo, the guide assumes the buyer has a 10 per cent deposit and a home loan interest rate of 6.4 per cent.
“As the data is based on median prices it is important to note that homes will be available for less and more than the median as it is simply the middle sale in the series,” he said.
“The guide also takes into account the 30 per cent lower stamp duty paid by first home buyers.
“Market conditions provide excellent opportunities for first home buyers this year, interest rates are at historical lows and prices remain below their peaks.”
