Buying a home in Australia is difficult, but not quite as difficult as some may think. There are circumstances and schemes that make it just a little more possible in our area.

First let’s look at some facts. The Firstlinks financial newsletter has compared statistics from the 2021 census to those from 2011. In the major cities the proportion of people who own or are buying their homes has fallen and the proportion renting has risen sharply.

For example the proportion of 30 to 39 year-olds who own or are buying their home in Sydney has fallen from 55 per cent in 2011 to 47 per cent now. The proportion renting has jumped from 44 per cent to 52 per cent.

Statistics also show that the number of new dwellings approved for construction peaked in 2021, has fallen each year since, and is still falling this year.

In regional areas these trends are evident but to a lesser extent. Being outside the major cities we have the advantage that the supply of homes is a little better than in Sydney and Melbourne in particular. There aren’t enough homes in Australia, but the shortage is less in the country.

Homes in country areas cost less. The land is cheaper. Small building firms and contractors are more efficient and produce dwellings more economically than the major city sites controlled by highly unionised workforces.

There are government schemes that make buying a home easier for some people. Three schemes allow home purchases with small deposits. Home buyers still need to be able to repay the amount they borrow but with lower prices than cities, small deposit purchases may be affordable.

The Regional First Home Buyer Guarantee allows purchasers in country areas to buy their first home with a deposit of only five per cent, and no lender’s mortgage insurance to pay. The Federal Government guarantees fifteen per cent of the value of the property and will pay the lender if the borrower defaults.

There is also the First Home Buyer Guarantee scheme. This allows people in city or country, who have not owned a property in the last ten years, to also buy with a deposit of just five per cent.

The third scheme is the Family Home Guarantee. It enables single parents with dependent children who do not own a property to buy a home with just two per cent deposit. So if a cheaper house can be found the deposit needed is small.

In NSW first home buyers pay no stamp duty except on very expensive properties.  

Payments can be reduced by taking a loan over thirty years. Some lenders also allow interest-only payments for the first few years, minimizing the regular instalments.