Melbourne's south-east buzzing with first home buyer activity: HTW

Melbourne’s south-east is becoming a hub for first home buyer action due to the relatively affordable housing options, in particular new estates, according to HTW’s Month in Review: March 2017. 

The valuation firm says first home buyers prefer a cheaper build contract and are prepared to complete these items after handover, compared to the turnkey packages more favoured by investors.

“In new land subdivisions there are often smaller blocks offered at a reduced price that would suit first home buyers who don’t necessarily require a large house site,” the firm says.

“There are unit and townhouse developments in the outer south-eastern suburbs which have an affordable price point, however they may not have the best capital growth prospects compared to the same product in suburbs closer to the CBD.

“It is a popular option at the moment for parents to use equity in their homes and become guarantor to a loan in order to either get approval or to raise additional funds for a deposit for a first home buyer.”

HTW cautions first home buyers against over-extending on a purchase to get into the market.

“It’s better to get a foot in the door and slowly work your way up to your dream house,” it says.

A two bedroom house at 11 Dotterei Close, Dovteton (above) has been listed for between $380,000 to $410,000.

Similarly a three bedroom house at 25A Morwell Avenue, Dandenong (below) has been listed for between $430,000 to $460,000.