What Is The First Home Buyers Scheme?

Renting vs Buying?
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Should I rent or buy? This is one of the biggest hurdles many 1st Home Buyers face when looking at their options when deciding if it’s a smart decision to buy a home or continue renting. To save you hours of painful browsing and reading, I’ve compiled a list of Pros & Cons for both scenarios with some Case Studies to illustrate “unusual” scenarios & how they may affect you…

Benefits Of Buying Property

  • Increased tax benefits, negative gearing deductions, property depreciation  over renting 1
  • Become a landlord with 1 easy step & have the ability to generate additional cashflow from renting 1 or 2 of your new homes spare rooms.
  • Buy with another party if you can’t buy on your own. Take advantage of capital growth and suburb growth benefits, while benefitting from reduced risk of buying individually
  • Interest rate cuts usually lower mortgage repayments, this in turn increases your avaialble income. Does your current landlord lower your rent at every rate cut?
  • Capital growth secures your future, this is a proven strategy as seen by many baby boomers (your parents) who are completely debt free due to capital growth.
  • If you buy a property with development potential this is a long-term investment strategy not a get-rich-quick scheme.
  • Avoid outragous landlord rent rises! The current interest rates on offer in Australia are the lowest in history. Securing a property now, you will not find a better opportunity.
  • Purchasing a property has many long term benefits, such as low rate secured personal loans and low rate secured credit cards, saving you on interest and fees every day.
  • Paying a property loan improves your credit rating over time allowing financial firms to provide products and services not obtainable by others with bad credit ratings.
  • The equitiy obtained in your property long term can be used to offset investnments in other areas, such as business, vehicles, other property purchases, loans and shares.
  • During the last 25 years the average house value in Perth has risen by a huge 412%. Having grown by an annual rate of 6.8%, according to a recent CoreLogic report presented by Aussie. The report can be found here.
  • Buying a new property allows you to build equity while only paying a small amount for the deposit. You get 100% of the capital growth on the property even though your deposit was only 2% of the property.
  • A mortgage is a form of forced savings so you don’t have to discipline yourself

Having the discipline of making regular mortgage repayments is one way to force you to save money by putting it into your home loan instead of spending it. Aussie Firebug, suggests that your principal loan repayments may act like a forced savings plan. The benefit of this is that part of your monthly repayment (the principal) is going towards paying off your own property, rather than your landlord’s”

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