How small (or tiny) can we go?
FHBA Property Market Update 20/11/17
In the last week alone there has been several headlines around small & ‘tiny’ housing. As Australia’s housing affordability woes continue many experts say we need to think smaller, but at FHBA we ponder, how small can we really go?
It has long been debated amongst experts, homeowners, investors, first home buyers (and really, anyone who thinks about property) – am I better to buy in the outer ‘burbs’ or in an inner-city area?
This topic was even featured in this week’s ‘First Home Buyer Diary’ series by journalist Jessica Irvine for the Sydney Morning Herald:
DIARY OF A FIRST HOME BUYER – WEEK 9 Is it better to buy out in the ‘burbs’ or save more and buy in the inner-city areas? Jessica Irvine contemplates this issue in week 9 of her popular series for…
Generally, if you are looking at buying in an inner-city area you are usually looking at smaller housing that is more expensive than larger housing in the outskirts of your capital city.
When it comes to housing prices, experts will tell you that it is not all about ‘location, location’. The overall size of a dwelling can also play a key factor in the overall prices of property.
This is why many property experts argue that the answer to Australia’s housing affordability crisis is to build smaller houses. Some of Australia’s state based planning ministers have accepted this argument and are embedding this view into their policies.
So will smaller housing be Australia’s saving grace?
At FHBA, our view on this important matter is this. While yes, the overall sizes of dwellings plays a key role when it comes to price (and as such, smaller housing should equate to lower priced entry level options for first-timers), this thinking as a stand-alone solution is flawed. Why? Because we can’t just go smaller forever.
Last week, a studio apartment, located 3kms from Sydney CBD, was listed for $319,000. Sounds like a bargain right? Well that is until you look at just how small the apartment really is. It is just 10 sqm!!
A 10sqm studio in Sydney is on the market for $319k. Bargain? Or ridiculous?
Meanwhile, in Melbourne a ‘tiny home’ was auctioned off for $56,000. Its size? Just 14 sqm. But, it doesn’t come with any land. For that price, it comes on wheels.
14 sqm home. $56,000. No land. But it does have wheels.
Now yes, these are extreme examples. But our point is, you can’t keep going smaller forever. Far more needs to be done to solve Australia’s housing affordability crisis than just to build smaller housing.
FHBA is keeping up the fight for today’s and tomorrows first home buyers – see our 5 point plan here
Need help exploring your options? – speak to an FHBA Coach for free!
Enjoy the rest of your weekly FHBA Property Market Update.
More First Home Buyer News
- Queensland First Home Owners’ Grant on the election agenda – Do you want to see the Queensland FHOG stay at $20,000 rather than fall to $15,000? Then you might want to pay close attention to this weekend’s state election – see who wants to keep the Grant at $20k for longer
- New vacancy tax passes senate – Foreign owners will be slugged with an annual fee if their property is left vacant for 6 months (or longer) after the legislation passed the Senate, but the First Home Super Saver Scheme (FHSSS) is yet to clear the Senate hurdle – read the new tax details in Domain
- Is buying an apartment in Brisbane as bad as the headlines suggest? – Have you got a deposit saved for Brisbane, but it is only enough for an apartment? You can buy an apartment if you do your homework say’s leading Brisbane property experts – learn more about the Brisbane apartment market in Domain
Interest Rates Update: 20/November/2017
Lately, when it comes to fixed rate home loans, generally the lower the fixed term, the lower interest rate. This would indicate that banks believe interest rates will move higher in the long term. So how should you finance your first home? There is no one right solution for everyone – find your solution with the help of a home loan expert
New Homes of the Week (edition 81)
Introducing our top five picks for First Home Owner Grant* (FHOG) (& FHBA 50 Rebate) eligible properties for this week. Apartments, house & land packages, townhouses, ready to build and construction already complete, there is plenty of variety in this weeks edition so be sure to take a closer look!
|New home of the week||State FHOG*||FHBA 50 Rebate*||View Property|
|New South Wales*||$0*||‘on enquiry’||See property|
|Queensland||$20,000||‘on enquiry’||See property|
|South Australia||$15,000||$5,250||See property|
|Western Australia||$10,000||$4,550||See property|
Did you know??
Our FHBA New Homes service can help you compare thousands of new home options from a large variety of property developers and agencies (including house & land packages, apartments, townhouses, duplexes, terraces and more)? Not to mention, we are the only ones to offer the FHBA 50 Rebate on top of the First Home Owners Grant*. Say hello to us so we can help you with your search to find your unique slice of the great Australian dream today! Hello!
*FHOG & FHBA 50 Rebate amounts are estimates only. Eligibility rules apply. Speak to an FHBA Coach for details. This week’s NSW property is not eligible for the FHOG due to the price falling above the NSW FHOG threshold, however, it is still eligible for the FHBA 50 Rebate – available exclusively through First Home Buyers Australia.
Current hotspot in focus: Ellenbrook (WA)
Every fortnight we take a closer look at an area in Australia that is popular with first home buyers. Our current ‘hotspot in focus’ is Ellenbrook of Western Australia:
- Ellenbrook is an affordable area located approximately 20km’s North East of Perth CBD
- Offering a nice lifestyle, close proximity to Perth CBD (including pending train line) and affordable housing, Ellenbrook has been growing in popularity with first home buyers
- Properties are currently priced around levels where first-timers can take advantage of government incentives such as the WA FHOG and Stamp Duty concessions
- Learn more about Ellenbrook and why it’s population is growing in our ‘hotspot in focus’ article
Preliminary Weekend Auction Clearance Rates (18th – 19th of November)
(It was the third busiest weekend of auctions this year. Source: CoreLogic)
Capital City Property Price Movements: 20/November/2017
Updated daily, the CoreLogic Daily Home Value Index shows how property prices have been changing in our largest capital cities over the last 12 months. Over the last 3 months, Sydney property prices have fallen 1%. Over in Western Australia, while Perth has seen further falls in dwelling values, the pace of the falls is declining.
|Capital City Index Score||3 months % Change||Yearly % Change|
|Adelaide: 113.21||+ 0.0%||+ 3.8%|
|Brisbane: 109.22||+ 0.3%||+ 2.8%|
|Melbourne: 156.77||+ 1.8%||+ 10.3%|
|Perth: 95.25||– 0.2%||– 2.7%|
|Sydney: 175.15||– 1.0%||+ 6.0%|
A quick look at what’s trending on our social media accounts – if you have questions, be sure to ask!
QUEENSLAND FIRST HOME OWNERS’ GRANT UPDATE – 20/11/2017 ✴️ brought to you by FHBA News – keeping first home buyers across Australia, informed. Yesterday, current Queensland Premier Annastacia…
Yet another #happy #firsthomebuyer #infinitystars #GreatAustralianDream #Firsthomeloan #FHBA #happyclients #Congrats
7 Likes, 3 Comments – First Home Buyers Australia (@fhba_firsthomebuyersaustralia) on Instagram: “Yet another #happy #firsthomebuyer #infinitystars #GreatAustralianDream #Firsthomeloan #FHBA…”
First home buyers in #Victoria can now register interest for the HomesVic program commencing early in 2018 #FHBA #vicpol #auspol #ausproperty #Melbre https://t.co/q5Rq0ITa4x
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