Myth Busted: FHBs Still Have Affordable Options In Sydney

Sydney’s first home buyers can still get their foot on the property ladder if they know where to look, according to Coronation Property, with developments such as its landmark Paper Mill precinct, on the banks of the George River, providing affordable choices.

The MP Report 09-05-2017

Sydney’s first home buyers can still get their foot on the property ladder if they know where to look, according to leading property development company Coronation Property, with developments such as its landmark Paper Mill precinct, on the banks of the George River, providing affordable choices. Indeed, Coronation’s final apartment release at The Paper Mill – The Foundry – had its grand opening last week, and includes one bedroom apartments starting at $465,000, and two-bedroom configurations starting from $575,000.

This confirms that growth suburbs such as Liverpool – which is a strategic centre in the NSW Government’s ‘A Plan for Growing Sydney’ – offer many new and off-the-plan purchasing options at a price point under $650,000.

With this in mind, young buyers should consider looking a little further west, says Coronation Sales Director, Jason Soulos. “For instance, The Foundry is tailor-made for buyers considering their first home purchase, with nearly 70% of the apartments available for sale at a price point below $650,000, giving buyers access to premium homes fronting the Georges River,” said Mr Soulos.

“These prices are indicative of a lot of housing that is springing up around Liverpool and in the Greater West, which is perfect for first home buyers, as it sits in that sweet spot under $650,000, somewhat dispelling the myth that there is nothing on offer for young buyers in Sydney.”

According to Kevin Gray from Mortgage Choice, a first home buyer would require a minimum deposit of around $33,000 for a $650,000 apartment. “In Western Sydney, there are plenty of areas where property remains reasonably priced, which is great news for all property buyers, and with interest rates continuing to hover around record lows, the cost of borrowing remains incredibly affordable,” said Mr Gray.

“Generally speaking, lenders prefer borrowers to have a deposit in excess of 5% plus costs – in other words, if you’re looking to buy a home worth $650,000, you would need to have a property deposit of more than $33,000.”

However, while it can be very difficult for young home buyers to save $33,000 towards a home deposit, Mr Gray says there are strategies and tools that can help. “With the addition of the NSW Government’s First Home Buyer Grant, young buyers can receive $10,000 towards a new home, which can make a significant impact on a purchase price up to $650,000,” noted Mr Gray.

“In addition, recent data from Mortgage Choice shows that more than 10% of Sydney-based first home buyers had a parent go guarantor on their loan.” A guarantor is a third party to a home loan that helps buyers secure a loan by offering additional security support. Guarantors are generally limited to parents or immediate family members. However, while a guarantor will help you avoid having to save a huge property deposit (and thereby help you into the property market sooner), you still need to prove that you can service the entire loan on your income before a lender will approve your application for finance,” advised Mr Gray.

“For instance, on a $600,000 home loan, with a 4% p.a. (principal and interest) 30-year term, the monthly mortgage repayments work out to $2,864, or $716 per week.”

Confirming Liverpool’s affordability for first home buyers, Mr Soulos said the suburb’s youthful median age of just 33 is a result of the area’s well-priced apartment housing and booming economic potential. “Apartment living is now the norm for many new homebuyers across Sydney, and what we’re seeing is a new young generation of Sydney siders who will be born and raised in an apartment,” he said. “As such, Liverpool is perfectly placed to meet the needs of this generation, with a range of quality, affordable housing on offer.”

Proving this point, Mr Soulos says the bulk of buyers at The Paper Mill to date are intending to live in their apartments and take advantage of the precinct’s extensive lifestyle and amenity offering.

Meanwhile, the approval of nearby projects, including the $47 million Moorebank Marina and the huge 240-hectare Moorebank Intermodal Freight Terminal, is set to bring jobs and investment to the region. “Liverpool already ticks a lot of boxes for infrastructure, and there’s more on the way, with the region set to benefit from $7 billion in infrastructure investmentiv over the coming decade,” said Mr Soulos. “This is why Liverpool is fast shaping up to be one of the most desirable locations for young buyers to live in Sydney.”

Furthermore, Liverpool Council are predicting that one in three new residents of NSW will live in the Great South West by 2036, with the population expected to increase by 77% in this time. This has seen a strong need for housing particularly, with The Paper Mill precinct master-planned to provide Liverpool with a new approach to urban life on the Georges River.

The repurposed heritage Paper Mill building will contain an exciting mix of amenity including artisanal shopping, cafés, pop-up stores, workshops, farmer’s markets and community activities. Once The Paper Mill is fully occupied, approximately 3,000 residents will have direct access to the river, with the precinct also connected to Liverpool Railway Station via a riverfront boardwalk. “This perfectly places residents of The Paper Mill to enjoy what will be some of the best lifestyle and recreational living in Sydney’s south west,” said Mr Soulos.

For sales enquiries, contact Coronation Property on 1800 768 401 or visit liveatthepapermill.com.au.

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