Why First Home Buyers Should Look at Buying in Regional Areas
In a tight housing market, first-time home buyers don’t have many options when it comes to purchasing their first home. They just have to keep a flexible mindset and be flexible. Remember, there will always be trade-offs. But the good news is that there are many affordable regional areas to choose from. Listed below are some reasons why first-time buyers should consider buying in regional areas. You’ll find the best options for your unique situation!
For those buying their first home, obtaining a mortgage with a conventional down payment is a challenge. Luckily, many programs exist to help those with limited funds. Regional Home Guarantee (RHG), for example, is a program that will allow eligible applicants to build or buy newly-built homes in regional Australia with only a five per cent deposit. Prior to this, Victoria home buyers were offer $20,000 regional First Home Owners Grant if purchasing in regional whereas that was halved if the home was not in regional areas or if the contract was entered from 1st July 2021.
If you’re considering buying a home, the closing costs for a first-time buyer in a regional area can be an unexpected surprise. Whether your lender covers these costs or not depends on the type of loan you apply for. Before you gather your funds, discuss them with your loan officer. The lender may cover the closing costs in part or in full, but this isn’t ideal.
The closing costs you’ll have to pay for your new home can range anywhere from 3% to 5% of the overall loan amount. That means that you could be spending thousands of dollars on closing costs if you’re purchasing a $400,000 house. While these costs can add up, they are typically covered through lender credits. This means that you will have lower upfront costs and a more affordable monthly mortgage.
Manufactured housing options
If you want to live in a more affordable home, consider buying a manufactured home. These homes are built in factories and built to HUD standards. They are professionally transported and set on permanent foundations. A manufactured home can be set on a permanent foundation for additional stability and safety. First-time home buyers should explore regional areas where they can find affordable manufactured homes. Some cities and towns even have zoning restrictions that limit the types of manufactured housing.
When looking at manufactured housing in regional areas, make sure to choose a manufacturer with a solid reputation. These homes are often priced lower than those site-built homes, considered a viable option for first-time buyers.
Perfect to enter the market for first-time home buyers
While the national housing market is becoming increasingly competitive, the mortgage industry is still eager to make the process as easy as possible for consumers. First-time home buyers can take advantage of government programs that can help cover the costs of the down payment and closing costs. Purchasing in regional areas is a perfect opportunity to enter the property market, there are plenty of choices when it comes to health and education. Traffic jams are virtually a thing of the past and there is a sense of community with a real focus on support on local farmers and small business.
Making a change and choosing a lifestyle set in regional areas can not only help put your foot in the door in the property market, it can give you a different perspective in life and slow everything down. Leaving the fast-paced lifestyle in the suburbs and hectic cities can help you appreciate what is important, so why not give regional a go…it may change your life!