It's undoubtedly the Australian dream to own your own property, but in today's real estate world, this is tougher and more complex than ever. Particularly in Sydney, where there's intense competition for houses and apartments, it can be difficult to find the perfect property, and instead many first time buyers rush into a purchase without thinking the decision through. In many cases, this leads to the purchase of a 'fixer-upper,' which will save you money up front, but not always in the long run.
Instead, it can be smarter to save more, wait a little longer and go for a higher-end option such as a luxury apartment. You'll be able to avoid the stress and disappointment that so often comes with a fixer-upper, and thanks to some new regulations surrounding first time buyers in NSW, you might just save some money as well!
It's a great time for first home buyers in Sydney to look for a property that really works for them.
New legislation in NSW
We talked about the new legislation back in June, but to briefly recap, the NSW Government has introduced a few changes designed to make it easier for first time home buyers to get onto the property ladder. These include:
- Reducing stamp duty for properties valued between $650,000 and $800,000.
- Abolishing insurance duty on lenders' mortgage insurance.
- Introducing higher duties and land taxes for foreign investors.
This new legislation is designed to level the playing field, and as a result it's a great time for first home buyers in Sydney to look for a property that really works for them, rather than having to compromise.
Why go for luxury?
But why go for luxury over a fixer-upper? You might think that a high-end apartment would cost a lot more, but there are plenty of studio and one bedroom options available in Crown Group's developments that fall below the $800,000 threshold, meaning you'd be eligible for stamp duty relief. Then there are the savings you'd enjoy from not having to renovate your home the moment you move into it.
Put simply, doing up a home costs a lot. Figures from Domain show that even a cheap kitchen renovation can cost up to $25,000. Meanwhile, if you wanted to get your fixer-upper's kitchen to the same level of luxury and quality you'd enjoy in a high-end apartment you'd be looking at up to $100,000 or more.
Plus, if you've purchased a house that needs a lot of work, it could take months or even years before it's anywhere near the standards you want. The cost, time and stress that comes with renovations shouldn't be taken lightly, and it's certainly not the ideal way to start your journey on the Australian property ladder!
Instead, talk to the team at Crown Group today about making your first home a luxury apartment.