OTP buys in Sutherland favourable for first time buyers: HTW

OTP buys in Sutherland favourable for first time buyers: HTW
OTP buys in Sutherland favourable for first time buyers: HTW

In the Sutherland Shire, good buying opportunities for first home buyers are in the suburb of Sutherland, according to HTW’s Month in Review: March 2017

The valuation firm says the suburb’s regular and express trains to the CBD and proximity to Westfield’s Miranda make it an attractive alternative.

Entry level units in Sutherland start from $500,000 to $700,000 for semi-modern one and two bedroom units.

“In this current market it’s difficult for first home buyers to enter as they are also competing against investors, particularly in heated market conditions, as most properties are sold at auction,” the report says.

“Private treaty sales and off the plan purchases may be more favourable for first home buyers.”

The firms cautions that it is important to have your finance ready and speak to a broker to find out your borrowing capacity.

“First home buyers can also partner with family members to purchase properties with duplex or house and granny flat potential in order to accommodate two separate residences,” it says.

“Be aware that this will affect eligibility for government grants.

“In terms of arranging finance, guarantor loans are also popular as it is difficult for first home buyers to save a deposit for a property.

“The banks will generally accept a guarantor loan as long as the purchaser can service the loan.”

HTW says the developers offering one bedroom units and studio apartments around the city fringe and along major transport hubs is helping to create entry level opportunities for first home buyers.

“These units are usually of similar quality to those within the surrounding development however may be more difficult for financing if the living area is less than 50 square metres.

“Some lenders offer lower loan to value ratios for these type of properties while other lenders won’t finance them at all.

“A recent example of this was published by the Sydney Morning Herald reporting a Melbourne first home buyer lost his $41,000 deposit on a St Kilda apartment at settlement because his bank did not lend on apartments with an internal area less than 50 square metres.”

The firm warns that if you are considering buying it’s important to do your research including inspecting as many properties as possible.

“If you are looking at purchasing off the plan then compare the inclusions you are getting as a lot of developments have the same level of finishes.

“Get your foot in the door – you may not be able to afford your preferred property type or location to begin with – so look for more affordable alternatives with the option to renovate or upgrade to a preferred option in the future.” 

A two bedroom unit at 25/50-56 Merton Street, Sutherland (above) is listed with a price guide of between $575,000 to $615,000.

Similarly a two bedroom unit at 13/50-54 The Grand Parade, Sutherland (below) is listed for between $575,000 to $632,500.

OTP buys in Sutherland favourable for first time buyers: HTW

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Sutherland Shire Htw

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