Recently the Real Estate Institute of Victoria (REIV) launched a fantastic new tool – The First Home Buyer Guide. Which may in fact be one of the handiest tools around.
If you are a first home buyer then use this to see how much your mortgage payments will be. The tool allows you to see the average weekly repayment for a home in the areas across Melbourne, Ballarat, Geelong and Bendigo. You can target suburbs and types of dwellings according to your budget.
However, you could also use it as a property investment research tool. By looking at income, house prices and mortgage repayments, you can get a good idea on where people will want to buy next – allowing you to get into those areas before the price goes through the roof. So if you find a location where the incomes are good and house prices are low, it’s a safe bet that the area will grow in value.
If you are new to buying houses, this tool does give you a realistic idea of the costs involved in buying property. Included in the costs, are conveyance fees, stamp duty and mortgage insurance along with the benefits of being a first home buyer – lower stamp duty and the First Home Owner’s Grant.
As a base, it is assumed that you have 10% deposit with an interest rate go 6.4%
So go check it out and see what you think. Would you use the tool to help with decision making?