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First Home Buyer

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Kate | 07 Oct 2013, 05:02 PM Agree 0
Hey Guys,

I am a first home buyer with my Partner of 7.5 years Nath. We are just wondering the pro's/con's of building versus buying established for a first home buyer and what kind of money we should be looking at for a first home?

We think we will have about a $20k deposit by June next year and was hoping this might be enough of a 5% to get us around a $350k house. What are your thoughts?

  • Eos Property | 13 Oct 2013, 10:54 AM Agree 0
    Hi Katie,

    As FHO you need to carefully weigh up what you are doing. While borrowing money looks very cheap at the moment - interest rates are at historically low levels. Rates will not always be this low so you and your partner will need to stress test your income levels with rates around 7%. Then throw in a couple of what if scenarios to see how you go.

    Personally I would look at buying an established home - buying a house and land package is an expensive option. While H & L packages are often landscaped they rarely come with the bits and pieces that make a house a home and you will often find yourself dipping into your pocket to buy the garden shed, the extra plants for the yard, a decent retic system, and so on.

    As an aside I think you would be better off building a more substantial deposit.

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