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The current market at a glance
Getting into the property market can feel overwhelming. Between saving a deposit, understanding loan options and navigating changing market conditions, many first home buyers are unsure whether now is the right time to make a move.
While interest rates remain higher than they were a few years ago, Melbourne's softer property market and a range of government incentives are creating more accessible pathways into home ownership for eligible buyers.
Recent data from the Real Estate Institute of Victoria (REIV) shows Melbourne's metropolitan market has softened by an average of 3.1%, opening a window of opportunity for buyers who might have been priced out during the peak market.
Planning to buy your first home? This article explores how the current market conditions could work in your favour.
Softer property values improve affordability
Saving for a deposit has traditionally been one of the biggest challenges for first home buyers. In a rising market, strong demand and increased competition often push property prices higher, making it harder for buyers to save enough for their desired property.
In a softer market, first home buyers may be able to negotiate more favourable purchase prices, resulting in smaller loans and lower deposit requirements. While interest rates are higher, purchasing at a lower price point can help offset some of the increased borrowing costs over time.
Another thing to remember is that interest rates won't stay the same forever. While interest rates are higher today than they were a few years ago, they are unlikely to remain the same thorughout the life of your mortgage.
A range of government innitiaves is also making home ownership more achieveable
First Home Owner Grant (FHOG)
The First Home Owner Grant provides eligible first home buyers with $10,000 towards the purchase or construction of a new home in Victoria. Whether you're buying a house, townhouse, apartment or unit, the grant can ease some of the financial pressure that comes with purchasing a property. Learn more
Stamp duty exemption or concession
Stamp duty, also known as land transfer duty, can add thousands of dollars to your purchase price. The good news is, eligible first home buyers can significantly reduce the amount of duty they have to pay or avoid it altogether.
If you're buying a property valued at:
- Up to $600,000 – you won't pay any stamp duty
- Between $600,001 and $750,000 – you may be eligible for a reduced rate of stamp duty
These savings help lower your upfront costs and make it easier to enter the market. Find out more
Australian Government 5% Deposit Scheme
Designed to help first home buyers enter the market sooner, this scheme allows eligible first home buyers to buy a property with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI).
A government guarantee is provided to the lender, so you don't need to save a full 20% deposit. Learn how it can help
First Home Super Saver Scheme (FHSS)
Another government initiative worth considering, this scheme allows eligible first home buyers to make voluntary contributions to their super and later use those savings to purchase a property.
Because super is generally taxed at a lower rate, you can reach your deposit goal sooner. Explore FHSS
Complete your due diligence before making a move
Just like any major life decision, buying a home requires careful research and planning. Before starting your property search, speak with a lender or mortgage broker to understand your borrowing capacity and potential loan repayments. It's also important to budget for additional upfront costs, including conveyancing, settlement and loan establishment fees, so there are no unexpected surprises along the way.
Ready to take the next step?
Whether you're just starting out or ready to begin your property search, our team can help you understand your options and navigate the buying journey. From finding suitable properties to sharing local market insights, we're here to support you every step of the way.
