The provided market data does not specify a required income figure for this price bracket. However, borrowing capacity has tightened following two recent rate rises, meaning your current income’s purchasing power is lower than it was six months ago.
Where this budget buys
Properties between $600,000 and $700,000 are available in Clyde North, Beaconsfield, Boronia, and Ferntree Gully. For budgets above $700,000, options include Boronia, Ferntree Gully, and the lower end of the Wantirna South townhouse market.
Deposit and cash requirements
A 20 percent deposit is the standard requirement to avoid Lenders Mortgage Insurance, though eligible buyers may use a 5 percent deposit via the First Home Guarantee. For a $600,000 purchase, the total cash needed to settlement is approximately $45,000 to $60,000, including conveyancing and building inspections.
The honest reality
Two recent rate rises have changed borrowing capacity. An updated pre-approval from a broker is essential, as any figures provided six months ago are no longer accurate.
Questions to consider
- Is your pre-approval current, or is it based on interest rates from six months ago?
- Does your budget allow for a 20 percent deposit, or are you relying on the First Home Guarantee to avoid LMI?
- Would an established home in Officer or Pakenham offer better long-term capital growth than a new build in the same price range?
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.