Property developer Mirvac has unveiled a new initiative designed to support Sydney’s first home buyers (FHBs) in securing their first real estate purchase.
At the opening of its Pavilions development in Sydney Olympic Park on Friday (24 February), Mirvac said it would offer 60 of the proposed 690 apartments exclusively to FHBs in an initiative it called The Right Start.
Interested buyers will be able to purchase these properties with a 5% deposit (around half of Mirvac’s usual stipulated deposit requirements). The apartments will be available for sale between $575,000 and $749,000.
This price range (below $750,000) means the apartments qualify for the NSW state government’s First Home Owner grant of $10,000. Furthermore, any property valued between $550,000 and $650,000 will be eligible for stamp duty concession as well.
Mirvac general manager of NSW residential and major projects, Toby Long, told News.com.au that Sydney property prices had surged so much that the younger generation was faced with never owning a home.
“We’ve been looking at affordability for some time trying to find ways to give first homebuyers an opportunity to get into the Sydney market,” he said.
“We were looking at the pain points and two of the biggest pain points first home buyers have is not having the opportunity and then not being able to save up that 10% deposit.”
First home buyers will still be expected to put down the full 10% deposit by the time the development is completed in 2020 however, with two annual installments of 2.5% to make up the difference.
“This secures the property while the first homebuyer continues to save for the full 10% deposit,” Long said.