Every journey to home ownership is different and it didn’t take Cerise Canon long to realise the appeal of buying a house and land package in one of Australia’s growth corridors.
The Canon sisters have one common goal: to buy a home in Melbourne by the time they hit 30. Each week we join a sister on their search for their first home, capturing the highs along with the lows.
The Canon sisters, from left to right: Hannah, Cerise, Emily and Hannah. Picture: Eugene Hyland
Cerise, 30 – a communications and social media specialist – led the way in terms of getting on the property ladder, recently moving into a four-bedroom new build in Melbourne’s west.
After years of house hunting, Cerise and her partner Matt purchased a house and land in an expanding suburb in Melbourne’s west, realising the benefits this kind of purchase offered.
Bang for your buck
Having accepted that they couldn’t afford to buy their ideal property in their preferred inner-city suburbs, the pair started searching further afield.
“After months of house hunting we soon realised that we wanted much more bang for our buck,” says Cerise.
“And in order to obtain what we really wanted, which was a sizeable home on a decent-sized block, we accepted that we’d need to sacrifice our inner-city Bayside lifestyle and look at properties further out.”
Cerise and her partner were drawn to growth prospects in Melbourne’s west. Picture: Eugene Hyland
Having grown up in Melbourne’s west and with family still living in the area, Cerise was happy to gravitate back to her roots and Matt was fully on board with the move, too.
“Our top suburbs were just too expensive for us,” says Cerise. “So we did our homework and decided that buying in a growth suburb in Melbourne’s west offered best value for money and potential for capital growth.”
Affordable prices and good growth
When looking for growth areas near you, it pays to look at suburbs and new developments that are well supplied with good public transport, a shopping centre and good schools. Longer term, these are the areas that typically see the best capital growth
Melbourne’s west is increasingly popular with first home buyers thanks to more affordable property prices, good growth prospects and the variety of new developments on offer.
The western beaches and parks were a big attraction for outdoorsy dog-lovers, Cerise and Matt. Picture: Supplied
A bigger home with personalised finishes
“While looking at properties in this part of Melbourne, we realised we could build a bigger home with personalised finishings that would likely gain more equity – and faster – than other options. For us, a house and land package ticked a lot of boxes,” says Cerise.
“We also loved the fact that we could choose our own plot to suit our needs, as well as the design of the house, including landscaping and finishings. In terms of location, we have direct access to the freeway towards the West Gate Bridge so getting into the city is easy. It’s a popular spot for young families and we find it super friendly, plus there’s some great walks just on our doorstep, which is a hit with our dog Affy.”
Cerise and Matt’s dog, Affy is on board with the move thanks to the area’s dog-friendly parks and walks. Picture: Cerise Canon
You may be eligible for the First Home Owner Grant
For first-time home buyers, getting the financial side of things in order can feel like a minefield. Finding out your borrowing power is a good place to start, then you can start shopping around for a home loan and concentrate on finding a mortgage that’s right for you.
“My advice would be to always get a second opinion when applying for a home loan. Initially, we went to a mortgage broker who only gave us pretty general advice as they felt we were quite a way off being in the position to buy, having only saved a 10% deposit at the time,” says Cerise.
“We then saw an ANZ mobile lender who was able to assess our situation and come up with a loan structure that suited us. Had we taken the initial advice we might have had to save for at least another year.”
Cerise and Matt’s four-bedroom new build is a great entry-level property. Picture: Supplied
“The process of getting the loan was quite straight forward,” adds Cerise. “The mobile lender came over to our house to process the application with us and then sent any corresponding paperwork for sign off through the mail. This meant we didn’t have to do any leg work.”
As Cerise and Matt decided to build a new home they were eligible for the First Home Owner Grant (FHOG). However, they missed out on the full Victorian first home owner stamp duty exemption payment (which goes up to $600,000) by one month.
“It was introduced after we signed the contract,” explains Cerise. “Fortunately, we were still given a portion of the exemption, and we received the first home buyers’ grant in full.”
…but it can take a little longer
A house and land and package is not without its drawbacks however, as the couple discovered.
“Land titling took much longer than we expected, and you need to pay loan repayments off the land as soon as the property titles, which means you’re paying your mortgage and rent at the same time while the house gets built,” says Cerise.
“The houses can also look very similar to your neighbours’ homes if your design isn’t personalised enough.”
Although it’s a great investment property, the pair are not likely to make it their forever home. With plans to live there for five years or so, the couple ultimately hope to live in their dream inner-city home, preferably by the beach.
Check ANZ’s First Home Buying Guide for more information on securing your dream home.
Median sale price: The price of a property that falls in the middle of the total number of properties sold over the preceding 12-month period. Data current as of May 2019. Data supplied by Hometrack Australia.
This article was originally published on
11 Jun 2019 at 3:27pm
but has been regularly updated to keep the information current.