Two recent rate rises have tightened borrowing capacity, but Melbourne’s South East remains one of the most accessible corridors for first home buyers. Affordability varies significantly by suburb and property type, with options available under $600,000, between $600,000 and $700,000, and above $700,000.
What can you buy for under $600,000?
Officer and Pakenham currently offer genuine detached 3 to 4 bedroom homes within the stamp duty exemption threshold. This represents the best opportunity for first home buyers to secure a house, not a townhouse, without incurring significant stamp duty.
What about a budget between $600,000 and $700,000?
Clyde North and Beaconsfield present options in this range, along with some possibilities in Boronia and Ferntree Gully with a sliding stamp duty concession. Buyers in this bracket need to be aware of the stamp duty implications and factor them into their overall budget.
What if your budget is above $700,000?
Boronia, Ferntree Gully, and the lower end of the Wantirna South townhouse market become viable. However, at this price point, buyers are likely facing a sliding stamp duty concession rather than a full exemption.
The honest reality
Established suburbs with constrained supply, like Wantirna and Wantirna South, are showing the strongest price resilience. Essentially, there’s no new land available, which means prices are holding up better than in outer growth corridors. This means competition for those properties will be higher.
Questions to consider
- What Victorian first home buyer schemes are you eligible for, and how can you maximise their benefit?
- How will further potential rate rises impact your borrowing capacity and repayments?
- Are you prepared to compromise on location or property type to stay within your budget?
Talk to KR Peters for a straight-talking appraisal with no obligation.
krpeters.com.au
Market information is general in nature and reflects conditions
at the time of publication. For advice specific to your property,
contact KR Peters.