Navigating first-home building: Insider insights for budget buyers

Building a home can feel out of reach for many first-home buyers in South Australia but there are budget-friendly pathways to homeownership if you know where to look.

Living in a newly built home is a dream for many South Australians but with rising costs and a lack of land available, it can seem impossible to many navigating the property market for the first time.

According to the South Australian government, the state will need approximately 315,000 more homes over the next 30 years to keep up with its rate of growth.

Real estate insiders note that this is a key issue for many first-home buyers, with many being approved for loans and ready to buy but not having land available.

Affordability can also be a considerable barrier to entry, with many first-home buyers feeling like they are priced out of the market in the face of this land scarcity.

South Australian first-home buyers, however, have access to some key programmes that can help them get into a new home at a more attainable price.

We spoke with the experts—finance broker and MV Finance owner Maddie Visser and Fairmont First housing consultant Scott Constable—to find out what is on offer for first-home buyers.

Government programmes

There are many initiatives offered by the South Australian government that can help first-time buyers achieve their homeownership goals.

HomeStart is a state government-established finance institution that specialises in making the path to homeownership more accessible.

“Budget-friendly lenders like HomeStart enable eligible buyers to get into their homes with a two to five percent deposit,” says Ms Visser.

Ms Visser explains that one of HomeStart’s most popular offerings are shared equity loans which allow lower deposits and avoid lender’s mortgage insurance.

“The shared equity component means that essentially the state government owns a silent share in the property but the buyer still lives in it and makes all the decisions,” says Ms Visser.

“It’s not forever, and once their income increases and they refinance later down the track they can buy back that portion—for many, it’s the difference between renting for another five years or owning their own home today.”

Buyers can share in equity up to 25% of the value of the property but they may not need to use the full amount.

Ms Visser often works with her clients to use the shared equity component to top up their existing borrowing power so they can get into a home sooner.

HomeStart also offers graduate loans which can boost the borrowing power of recent Certificate III or higher graduates.

Ms Visser says that there also other government incentives only accessible to those building a new home.

“If you’re building a brand-new home, you’ll receive the $15,000 first homeowners grant and stamp duty waivers that cuts out tens of thousands of upfront fees,” she explains.

Fixed-price packages

One opportunity that Fairmont First offers is fixed-price packages on new home builds.

“Fixed-price packages are one of the safest and most effective ways for first home buyers to get into the market,” says Ms Visser.

Fixed-price packages means that all the costs of the build are calculated before the contact is signed, meaning first-home buyers can have an accurate idea of how much their new build will cost from the start.

“When you build normally, if the builder hasn’t supplied perimeter paths, stormwater or any external landscaping then you’ve still got to factor that into your budget when you complete the home,” says Mr Constable from Fairmont First.

“When we go to a final contract, we know that is going to be a final figure and there are no surprises in a fixed-price contract.”

Fairmont First are currently offering a range of affordable fixed-price, ready-to-build homes at their Bentley Road community in Blakeview.

“Bentley Road offers a unique opportunity for first-home buyers to get into a master planned community,” says Mr Constable.

“It’s already well-established, family-orientated area and it’s close to everything, like schools and shopping centres.”

Bentley Road is served by nearby bus routes and quick access to both Main North Road and the Northern Expressway, making transport connectivity simple.

The project is also a master planned community, meaning that Fairmont First has fully considered the design and layout including the facades and streetscape, to create one cohesive and well-connected neighbourhood.

It also means that the community is well-suited to first-time buyers, with a range of homes being available for purchase using the HomeStart Shared Equity programme.

This means buyers can get into their dream homes, without compromising on style or size.

“You’re getting really nice big family homes at a really good price point,” says Mr Constable.

Expert advice and support

Navigating through the government schemes and builder packages can be difficult for first-home buyers just starting out in the property market.

That’s why talking to experts, like Fairmont First and MV Finance, can be such a game-changer for first-time home builders.

“I can’t tell you how many times I get contacted by people that are really deflated because they’ve walked into their bank and been told they need to save a 20% deposit or they can only borrow a certain amount,” says Ms Visser.

“It’s our job to know all of our lenders and all their different policies and to align you with a lender that’s suitable for your scenario instead of you walking into a bank and pigeonholing yourself to just that one policy.”

The importance of a mortgage broker is why Fairmont First has partnered with MV Finance as just one of the ways they assist first-time buyers in every step of the buying journey.

“We work with first-home buyers and we really do help them on that building journey,” Mr Constable says.

“A lot our clients are people who don’t know what their budget is initially, so we help them through the entire process by guiding them to MV Finance who qualifies what their borrowing capacity is and what their circumstances are.”

From there, Fairmont First can use their expert knowledge of the land estates in Adelaide and align those budgets with the land and build sizes that these first-home buyers are looking for.

Backed by Fairmont’s nearly 60 years of experience, buyers can then expect to have a high-quality home that allows them to get into the market at a price that suits them.

“We come in at that affordable price, a price point that’s going to be almost unbeatable in the market,” says Mr Constable.

Fairmont First specifically caters to first-home buyers and is dedicated to making that journey less daunting to those just entering the property market, overcoming significant hurdles that make owning a home seem inaccessible.

“We simplify everything, it’s a streamlined process,” says Mr Constable.

“We really are there for the first-home buyers who really do need that help and guidance through their first homebuying journey.”

If you’re interested in building and buying your first home, the first step is to get in contact with expert Fairmont First housing consultants like Mr Constable and seeing how Fairmont First can help you get started.

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