First home buyers set to benefit from First Home Guarantee extension

In a significant move to support first-home buyers, the federal government is extending the First Home Guarantee scheme, allowing young Australians to enter the housing market with just a 5 per cent deposit. This initiative, that started 1st October, is expected to alleviate some of the financial burdens on first-time buyers, who have long been advised to “save harder” for their dream homes.

Aussie Home Loans has conducted an analysis to identify suburbs where these smaller deposits can be maximised, revealing some surprising results. “Too many first home buyers are hunting in suburbs that simply don’t match their budget,” explained Aussie mortgage broker Tracey Hammond. “The disconnect between a dream home and financial reality can lead to missed opportunities, prolonged searches, and the risk of overpaying. Being realistic about purchasing capacity from the outset is crucial.”

The new First Home Guarantee calculator developed by Aussie Home Loans measures average savings across states and territories against local home prices, providing a realistic guide for first-home buyers. The results highlight key suburbs in each region where buyers can find affordable homes and units.

New South Wales:

Despite an average savings of $59,983, buyers in New South Wales face a challenging market. The outer metro unit markets offer some of the few remaining opportunities. Suburbs like Edgeworth, with a median house price of $745,818, Dapto at $787,694, and Blackheath at $821,479, are among the entry-level options for houses. For units, Kingswood ($741,089), Wollongong ($761,376), and Wentworth Point ($783,105) are more accessible.

Victoria:

In Victoria, the average savings of $38,708 stretch further, particularly in growth corridors. Melbourne’s western growth belt is a popular choice for first-time buyers, despite issues like transport bottlenecks and limited amenities. Suburbs such as Melton South ($523,748) and Wyndham Vale ($602,229) offer detached homes within commuting distance of Melbourne. Brookfield ($604,436) is also a viable option for houses, while units in Glenroy ($568,377) and Officer ($574,513) remain accessible, though competition from investors is strong.

Queensland:

Interstate migration and Brisbane’s Olympic-driven infrastructure projects are boosting demand in Queensland, with average savings of $44,975. Beaudesert ($694,351), Bethania ($697,157), and Caboolture South ($702,577) are emerging as fast-growing commuter towns. Bayside lifestyle locations like Bongaree ($619,197) are also within reach for first-home buyers. Rochedale South ($616,183) and Logan Reserve ($664,682) are other unit markets making the list.

Western Australia:

With average savings of $49,609, Western Australia offers a more balanced market, especially in coastal and satellite city areas. Detached houses in Gosnells ($616,130), Midland ($619,037), and Balga ($621,032) are comfortably priced under $650,000. Midland also features in the unit market list at $464,045, along with coastal areas Rockingham ($490,782) and Mandurah ($506,078).

Tasmania:

Tasmania’s average savings of $37,554 face challenges in Hobart’s undersupplied market. However, suburbs like Moonah ($632,566), West Moonah ($624,768), and Carlton ($613,877) are viable for houses. For units, Claremont ($431,766) and Glenorchy ($434,083) remain affordable options for budget-conscious buyers.

Australian Capital Territory:

Canberra’s first-home buyers, with the lowest average savings in the country at $28,618, are under pressure. Government-backed jobs and strong demand from students and public servants keep prices high. Units in Gungahlin ($465,112), Belconnen ($504,849), and Phillip ($509,071) are accessible, while affordable house markets include Belconnen ($488,859), Greenway ($552,470), and Phillip ($632,819).

Northern Territory:

The Northern Territory offers the most headroom with average savings of $68,148. Darwin City units, priced at $413,263, are among the lowest capital-city entries nationwide. Darwin City houses are also affordable at $497,717. However, the market remains volatile due to limited housing stock and a transient workforce, restricting the eligible suburbs to just two.

The extension of the First Home Guarantee scheme is a significant initiative by the Labor government. Treasurer Jim Chalmers has emphasised the importance of this scheme, stating, “The extension of the Home Guarantee Scheme has been a major Labor initiative.” As the scheme rolls out, it is expected to provide much-needed relief and opportunities for first-home buyers across Australia.