A Guide to buying your first home.

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Our handy guide will help you understand your options when it comes to buying your first home.

Why is now the right time to buy?

Buying your first home is a significant moment in your life, but just because it’s a big step, it doesn’t mean it needs to be a stressful one. The thought of purchasing a home can often be the reason people keep delaying the process. Postponing it could be costly as the right time to buy is now due to:

Did you know it can be cheaper to buy than continue renting?

Increasing cost of renting.

Renting a home is no longer a cheaper option to paying off a mortgage. In Perth, rental prices have increased by more than 20% in the past year (2021). As the rental market continues to tighten, tenants are facing fewer options than ever before!

Perth’s rental crisis.

There is no denying it, Perth is currently experiencing a serious rental crisis. The competitive nature of the market has seen some properties receive upwards of 50 applications. With this steep increase in the need for rentals, more people are looking at the plausibility of becoming homeowners rather than renters.

Low interest rates.

Taking advantage of low interest rates is a great way to ensure you can pay off your mortgage in a shorter time span. Locking in your mortgage repayments at a low rate is a key aspect of understanding just how much you can borrow.

Other things to consider.

Leave the family home.

Although living at home is a great way to save money, you should use it to your advantage and save towards entering the housing market. Making the decision to leave the family home and create your own home is a freedom like no other.

Stop paying someone else’s mortgage!

For many people, rent money is dead money. If you think about the money you pay in rent per year, you more than likely are paying the equivalent of a nice little nest egg for a house deposit. With great incentives and low interest rates, it may even be cheaper for you to own a house than pay rent!

Get out of shared living.

As fun as it may be for a period of time, more often than not, there comes a time when shared living is no longer ideal. If the time has come where you have outgrown the share house, it may be time to start your journey to home ownership!

Ready to start your home buying process?
Download our handy guide

Find out how much you can borrow

It can be daunting to look at the cost of house and land packages, you may feel like you could never get a loan approved for that amount of money. Many factors come into play when securing a home loan, including

The easiest way for you to know how much you can borrow and put your mind at ease is with Mikes Help!

Did you know it is cheaper to build than buy established?

Depending on your personal preference you may want to purchase an established house, or start from scratch and purchase a house and land package. The choice you make also has a heavy dependence on the relevant incentives for each option.

Buying established

Blocks in areas with well-established facilities have often already been taken advantage of and have established houses on them. For many, this means if you want to be close to the CBD or older suburbs, you will more than likely need to purchase an established property.

Building your first home

Alternatively, if you are wanting to purchase a property you can put your own unique stamp on, then building your very own home may be the best option. The government incentives for this option are also quite handy. The First Home Owner Grant for house and land packages can be up to $10,000.

Did you know? With the current situation in Perth, it can be cheaper to buy than rent!

You might have more options than you first thought when it comes to buying your first home. Download our guide to learn more about the options available to you

What are my options?

No Deposit Home Loans

If you are still worried you might not have enough behind you to secure your ideal property, you could consider a guarantor loan. This means someone else who already owns a property, agrees to use their property as security with the bank for you to takeout a home loan. If someone you know trusts you to make your repayments on time, they may be happy to go guarantor on your loan. The benefits of this include:

Continue Renting or buy now?

In the past renting has been the cheaper option to paying off a mortgage, however, that is no longer the case! Low interest rates and great government incentives means you can secure some house and land packages for as little as $296 per week.

It is now cheaper to buy a house than rent in 36% of Australian suburbs.

Building with a deposit as low as $3000

If you don’t have a large amount of savings for a home loan deposit, a Keystart loan could be a good option. The initiative by the Western Australian Government helps future homeowners who have a smaller pool of savings, enter the property market. The Keystart program also removes the need for LMI, cutting down on that extra cost that a big bank home loan may not.

Increase your borrowing capacity.

When purchasing your first home, the amount you can borrow is an important consideration. This ultimately affects what type of home you can afford and where. A good way to increase your borrowing capacity is to consolidate your current debtsthe first step of their home buying journey.

By increasing your borrowing capacity:

What option is best for you?

Everyone’s situation is unique to them. To find out the best option for you, Mike will work with you to gain a thorough understanding of you, your goals, and your current situation.

Need help with understanding which option is best for you? – download our handy guide

What Drives Mike Mackenzie?

Solutions that work.

Long-term outcomes to reduce your financial stress.

Family-first approach.

Easing the financial burden for you and your family.

Knowledge to empower.

Educating you to make informed financial decisions.

Giving your time back.

Saving you valuable time negotiating with lenders.

Invested in your success.

Simplifying your finances to help you get ahead.

Financing your future.

Tailored finance for today and tomorrow.