Chiara – Community West Real Estate

First Home Buyers – Government Grants and Schemes (2023)

First Home Buyers – Government Grants and Schemes (2023)

March, 2023

So, how long does it take to save 20% for your 1st home these days?

According to the recent release this week of the Domain First Home Buyer Report 2023, if you buy in Sydney, you’d have to save for over 6yrs 8mths but in sunny Perth its almost half that at 3 yrs 7mths! (Source: Nicola Powell)

Amongst other factors, the main reason is because Perth’s median dwelling value is approximately $545,000 (REIWA, Mar2023) which makes it Australia’s second most affordable, and one of the worlds most liveable City’s (Source: REIWA/Landgate, Mar 2023).

Buying a home in #Perth is made all that more affordable through special incentives geared to get first home buyers into home ownership.

Here’s a reminder of 5 options available for first home buyers in WA:

Home Guarantee Scheme (Australian Government backed with only 2-5% deposit required and with no LMI).
1st Home Owner Grants (WA Government FHOG offering $10k for new homes in Perth upto $750k).
1st Home Owner Rate ~ stamp duty concession (WA Government concessions up to $530k).
Home Buyers Assistance Account (WA Government offering HBAA rebate of upto $2k for incidental costs, capped at $400k purchase price.
1st Home Super Saver Scheme (voluntary contributions in super to put towards your deposit).

To understand these options and eligibility requirements we have compiled the following excerpts with links below.

1) The Home Guarantee Scheme (HGS)

What is the Home Guarantee Scheme?

The Home Guarantee Scheme (HGS) is an Australian Government initiative to help you buy or build your first home sooner. You can buy your home with as little as 5% deposit and no Lenders Mortgage Insurance. It is not a cash payment or a deposit and not all major banks are participants. You can see the list of participating banks offering HGS here.

The HGS includes:

The First Home Guarantee (FHBG) – to support eligible first home buyers to buy their first home sooner, with a deposit as little as 5%.35,000 places are available each financial year.
The Regional First Home Buyer Guarantee (RFHBG) – to support eligible regional first home buyers to buy a home in a regional area. From 1 October 2022, 10,000 places are available each financial year to 30 June 2025
The Family Home Guarantee (FHG) – to support eligible single parents with at least one dependent child to buy a home, with a deposit as little as 2%. 5,000 places are available each financial year to 30 June 2025.

Your purchased property must be an acceptable property type and within the property price threshold for the suburb and postcode. You can check the property price cap for your chosen area, and eligibility requirements for each of the benefits above, on NHFIC’s website – https://www.nhfic.gov.au/support-buy-home

2) First Home Owner Grant (FHOG)

Get access to a one-off $10,000 grant for the purchase or build of a new home.

To be eligible you must:

buy or build a new residential property for use as your principal place of residence.
not have owned property in Australia before.
be an Australian citizen or a permanent resident of at least 18 years age.
be an owner-occupier, not a residential investor.
meet all the eligibility criteria under this scheme.

The value of your transaction is;

o South of the 26th parallel up to $750,000 (value of land and building). Note: All Perth metropolitan areas are south of the 26th parallel.

o North of the 26th parallel – value of land and building is up to $1,000,000.

A home that has been substantially renovated may be considered a new home. The grant is not available for the purchase of an established home or for renovations to an existing home. Refer to the eligibility requirements.

https://www.wa.gov.au/government/publications/fhog-fs

3) First Home Owner Rate (FHOR) ~ Stamp Duty Concession (WA)

Stamp Duty (transfer duty assessment) can be calculated by determining the dutiable value and applying the appropriate rate of duty.

Dutiable value of home up to $430,000 = No Duty payable.
Concessional rate is capped at $530,000.

A person may be entitled to the FHOR if the unencumbered value of the land, or the land and home, under the transaction does not exceed the dutiable value thresholds and:

they qualify for the FHOG grant or
they would have qualified for the grant except that the transaction was for the purchase of an established home or no consideration was paid under the transaction or they are an Indian Ocean Territory resident acquiring their first home.

https://www.wa.gov.au/government/publications/first-home-owner-duty-fs

4) Home Buyers Assistance Account (HBAA) (WA)

The scheme provides a grant of up to $2,000 for the incidental expenses of first home buyers when they purchase an established or partially built home through a licensed real estate agent.

The maximum purchase price criteria for the Home Buyers Assistance Account is $400,000.

https://www.housing.wa.gov.au/housingoptions/homeownershipoptions/FirstHomeBuyers/REBA/Pages/default.aspx

5) First Home Super Saver Scheme (FHSS)

You can use your voluntary contributions in super to put towards your deposit.

From 1 July 2017, you can make voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into your super fund to save for your first home.

From 1 July 2018, you can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home. You must meet the eligibility requirements to apply for the release of these amounts.

You can use this scheme if you are a first home buyer and both of the following apply:

You will occupy the premises you buy or intend to as soon as practicable.
You intend to occupy the property for at least 6 months within the first 12 months you own it, after it is practical to move in.

You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to a total of $50,000 contributions across all years. You will also receive an amount of earnings that relate to those contributions.

To be eligible you must:

not have owned property in Australia before
be an Australian citizen of at least 18 years age
not previously had funds released from superannuation under this scheme
meet all the eligibility criteria under this scheme.

Only voluntary contributions can be accessed as part of the FHSS scheme. Certain types of contributions are not eligible to be withdrawn under the FHSS scheme, including:

compulsory employer contributions (eg: Superannuation Guarantee)
spouse or child contributions
Government co-contribution
Contributions made by another individual or entity on your behalf (except where your employer makes additional contributions for you under an agreed salary sacrifice arrangement), and
voluntary contributions to defined benefit funds or constitutionally protected funds.

https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/

We recommend you research further to confirm eligibility of the above via the links provided.

If you have found this information helpful please share amongst your network.

If you’re a 1st home buyer ready to buy and seek good quality, experienced and honest advice to help you secure a home to be proud of, please reach out to me.

I’m passionate about helping you reach your real estate goals!

Chiara Pacifici | Buyers Agent | Licensee | 0419 953 079

Inspiring Community Connections

For Locals, By Locals: from small things, big things grow.

Strata residents from a small tree lined street in Leederville came together on ‘Neighbour Day’ as a way to connect and get to know their neighbours.

A number of residents discussed ways to work together as a community to grow and share and have some fun.

The idea for a ‘Wylie Place Community Garden’ was high on the agenda and after thoughtful consideration & strong support from locals, residents received a grant from the City of Vincent to create, build and grow it.

The City designated a sun filled area on Council owned land and residents arranging a ‘Busy Bee’ one sunny Saturday morning in September to help build & plant the wicking beds. This community project was inspired by the Windich Street Community Garden of whom generously offered support and guidance to help establish #2.

This Project was proudly supported by City of Vincent, Gaia Organic Gardens, Community West Real Estate and Green Gurus™.

Seeking A Helping Hand To Home-Ownership?

Many of my clients need financial assistance to shift from renting to buying a home.

Not all are 1^st home-buyers. Many are stuck in the rental cycle – needing a guarantor to secure a loan so they don’t pay mortgage insurance, or are short on the deposit or require funds to cover upfront purchase costs.

The good news is that the Australian and State Governments continue their funding allocations to help people secure affordable homes. I’ve compiled an updated list of these for eligible future West Australian homebuyers (as at June 2021).

On 8 May 2021, under the 2021- 2022 Budget, the Australian Government announced the extension of the New Home Guarantee and the establishment of a new program called the Family Home Guarantee

Family Home Guarantee aimed at single parents with dependents who wish to buy property but only have a 2% deposit. From 1 July 2021, 10,000 Family Home Guarantees will be made available over four financial years for both 1^st home-buyers & previous owner-occupiers (subject to the individual’s ability to service a home loan).

First Home Loan Deposit Scheme (New Homes), providing an additional 10,000 places in 2021-22. Eligible from Federal Govt for 1st home buyers who want to build or buy a new home with just a 5% deposit, without paying lenders mortgage insurance (LMI).

First Home Super Saver Scheme which makes it easier for people to save for their first home, by increasing the amount of voluntary contributions that can be released – increased from $30,000 to $50,000. The FHSS allows you to save money for your first home inside your super fund. This will help first home buyers save faster with the concessional tax treatment of superannuation.

1^st Home Owners Grant (FHOG) – You are only eligible when you buy or build a brand new home as the grant is not available if you buy an established home. However, a home that has been substantially renovated may be considered a new home. There are limits on what you can pay for your first home to be eligible. If you’re located south of the 26th parallel, which basically covers all the Perth metropolitan area, you can claim the FHOG WA if your new home is worth up to $750,000 – this includes the value of the land plus buildings. If you buy or build a home north of the 26th parallel, the property must be valued up to or below $1 million.

Stamp Duty Concessions: If you buy vacant land to build your first home, you’re exempt from paying stamp duty as long as your purchase does not exceed $300,000. If you pay between $300,000 and $400,000 you will be entitled to a reduced rate of duty. If you buy a home costing up to $430,000, no stamp duty is payable at all. If the value of your home is between $430,000 and $530,000, you’ll be entitled to a reduced rate of stamp duty.

If you need unbiased advice and guidance to find and purchase your home – please contact me. I specialise as a Buyers Agent and would be delighted to help you navigate your real estate journey.

Please feel free to share this post widely.

Chiara Pacifici. 0419 953 079 | chiara@communitywestre.com.au

Future of Housing – Low Energy Homes

Solar Dwellings.Floreat.2018 (Image: Solar Dwellings. FLOREAT. 2018)

Over 9 million homes exist in Australia and are responsible for 23 per cent of electricity use and around 11 per cent of Australia’s greenhouse gas emissions.

Many of these were built prior to national minimum energy efficiency regulations introduced in 2003 which means they cost more to run, are less health (natural light and ventilation), less thermally comfortable and emit higher emissions than those newly constructed (approx. 200,000 new dwellings per year).

Nationally consistent policy options are being considered as part of the Trajectory for Low Energy Buildings to help reduce the emissions profile of existing homes in Australia making them zero energy (and carbon) ‘ready’.

“Zero energy (and carbon) homes have an energy efficient thermal shell, high efficiency major fixed appliances and are at least ‘ready’ to achieve zero net energy usage annually by combining renewable or decarbonized energy systems (on or off-site).”

(Image: Solar Dwellings. GNARABUP. 2012)

But getting the design right always comes first. Griff Morris who leads multi-award-winning building design firm Solar Dwellings in Perth has worked with home-owners and builders to optimise design and liveability outcomes for almost three decades. The sustainable homes designed by Solar Dwellings are accessible for all budgets, from first homes builders through to luxury appointed.

Griff also knows how important solar passive design is to long-term affordability and comfort of occupants.

“This awareness in the value of good passive solar design has grown over recent years as people seek to inform themselves.”

Understanding the design principles of good passive solar design is generally misunderstood by the building industry as well as the general public. In following the principles of passive solar design, it is unusual that a home would require heating or cooling for more than 8 – 10 days of the year.

“Essentially, people can cut their energy running costs by up to 70 – 80%”, Griff says.

However, more can be done to better inform consumers (buyers, sellers and renters) so they understand how to make better real estate choices now.

It seems there is overwhelming support for a national voluntary disclosure system that would measure, benchmark and communicate information on the energy performance of existing homes, especially at the time of sale or lease.

Research conducted by the CSIRO (The Commonwealth Scientific and Industrial Research Organisation) and Common Capital on behalf of the EnergyFit Homes initiative, showed that 92 per cent of housing consumers want energy efficiency details revealed in building inspection reports; 82 per cent at open inspection; and 72 per cent in property advertising, with half of home buyers and renters willing to pay for this information.

As the cost of living increases (rising power bills etc), an exciting new opportunity is opening up in today’s real estate market for healthy, efficient, comfortable homes that are more affordable to live in and are connected to community.

The Liveability Real Estate Framework was developed from within the property marketing industry and is now owned and supported by CSIRO.

“Liveability is all about finding or creating your best home – one where you and family can thrive”.

The award-winning Liveability Real Estate Specialist Training program up-skills existing sales agents and property managers to identify, appraise and list an additional 17 Liveability Features.

(Image: Solar Dwellings. BEDFORD. 2018)

These new Liveability Features (The 17 Things) offer the potential for increased comfort and reduced running cost if used correctly by the occupant. They cover location, floor plan and layout, key building structure elements, important energy and water efficiency devices and energy ratings.

This new specialisation in residential real estate for sales people and property managers is relevant for new and existing homes. Graduates are widely considered to be the next generation of real estate agents as they are able to provide real knowledge and understanding of these new Liveability Features to buyers and renters as part of a richer customer experience.

To learn more and how to promote these features in your next home contact Chiara directly. 0419 953 079 | chiara@communitywestre.com.au

Author:

Chiara Pacifici has spent over two decades in residential real estate and property development. Chiara has an extensive background in sustainable design and construction working with developers, training fellow agents, advocated government for legislative policy change and leading customer research. She is the Licensee, and Director at Community West Real Estate. As a Liveability Real Estate Specialist Chiara has been trained to identify, appraise and sell an additional 17 Liveability Features, knowing how to recognise them and why they are important for occupants and re-sale value.

CWRE Perspective – State of the WA Market.

First Home Buyers Make a Come Back

The latest QBE Australian Housing Outlook Report (released last week) forecasts improved property values for Perth by 2022.

‘First home buyers, accounting for almost 20 per cent of mortgage lending, are continuing to lead the charge to buy residential property as more onerous conditions forced many potential investors out.’

Nationally, the confidence in the 1^st Home Buyer market seems to have returned judging from figures release by ABS. The number of loans to first home buyers grew in July, rising 15 per cent on the month prior with almost 30 per cent of them making up all owner-occupier commitments. This lift was supported by a 20 per cent lift in the value of loans to first homebuyers.

According to the ABS, National figures show a total of 48,662 home loans were approved to owner-occupiers throughout the month of July[1].

How WA Compares With the Top Performing States

Perth Market – ‘Predictions’

The Perth residential markets are forecast to turn by 2021/22, with improvements in property prices to emerge as dwelling oversupplies are absorbed and the improved affordability provides a trigger for price growth as economic conditions begin to strengthen[2].

Houses

Historic Snapshot: (Source: The QBE Australian Housing Outlook 2019–2022)

Medium house price: 3% decline in the median house price 2018/19, representing the fifth successive year of house price falls – totalled 13% between June 2014 and June 2019. Rents: Down by 22% (June 2019) from their June 2014 peak.

Predictions:

After a marginal decline in 2019/20, house price growth is forecast to emerge from 2020/21 as the excess dwelling stock is reduced and positive impetus returns to price growth. By June 2022, the median house price is expected to reach $550,000 (6% higher than June 2019 levels).

Units

Historic Snapshot: (Source: The QBE Australian Housing Outlook 2019–2022)

Median unit price: fall of 9% in 2018/19 experiencing a total 20% decline since peaking in December 2014.

Predictions:

After a marginal decline in 2019/20, a limited rise is forecast for 2020/21 before unit price growth picks up to take the median unit price to $380,000 by June 2022, or a 5% increase on June 2019 levels.

Reasons for Predicted Improvement

It seems that dwelling values across Australia have found a floor, consecutive rate cuts from the Reserve Bank have pushed home loan interest rates to all-time lows, and the lowering of mortgage serviceability rates has increased the borrowing capacity for some borrowers, having a positive flow-on effect.

In WA, rises in commodity prices are encouraging mining investment, which should improve employment growth.

WA’s population is predicted to slowly increase 0.7 to 1.7 per cent per year and rise up to 2.9 million in 2027, depending on interstate migration. These figures are based on various estimates for assumed levels of births, deaths and migration.

By 2066, WA could have 4.5 to 5 million people with the Greater Perth region housing 81 per cent [3].

Medium House Prices by Capital City: a longitudinal snapshot

RESOURCES

[1] ABS (5601) – Lending to households and businesses, Australia, Jul 2019 https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/5601.0Main%20Features2Jul%202019?opendocument&tabname=Summary&prodno=5601.0&issue=Jul%202019&num=&view=

[2] The QBE Australian Housing Outlook 2019–2022 https://www.qbe.com/lmi/news/reports/housing-outlook

[3] This latest Population Projection of estimates are lower than previous predictions in 2013 as we were at the tail end of the mining boom. https://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3222.0Main%20Features112012%20(base)%20to%202101?opendocument&tabname=Summary&prodno=3222.0&issue=2012%20(base)%20to%202101&num=&view=

Homes on the Rise – the future of strata

New Strata Laws to Benefit All

Late last year the ABS released Population Projections for Western Australia – 2017 to 2066[1]. In it, various estimates based on assumed levels of births, deaths and migration would see WA’s population slowly increase 0.7 to 1.7 per cent per year and rise up to 2.9 million in 2027, depending on interstate migration.

By 2066, WA could have 4.5 to 5 million people with the Greater Perth region housing 81 per cent [2].

This rise in our urban population would, without doubt, feed our need to meet infill housing targets still estimated at 47 per cent (or 380,000 homes)[3]. The majority of which will be medium density housing (strata / survey-strata).

While the government is focused on developing housing opportunities along major public transport routes through Metronet[4], the long term viability and resilience of our strata buildings will be just as important as their location, connection to transport, building design and construction quality.

The timely and much needed new Strata Title Amendment Bill 2018 helps to make strata better, address problems that have risen in strata, introduce a new form of land ownership (leasehold strata title schemes) and modernise the language and structure of the Act[5].

By November 2019, Strata Titles (General) Regulations 2019 – Management with provisions governing the Amendment Bill will finalise the 10 main improvements to our Strata Laws.

These include the following (as provided by the Bill):

Strata managers will be regulated and made more accountable. Statutory duties will be imposed on strata managers to make them more accountable and to encourage higher standards of professional service to be delivered to strata companies
Owners will have more of a say in the running of their scheme. Owners will have more of a say in how their scheme is managed by allowing voting to occur outside of a meeting, permitting electronic voting, and expressly allowing strata companies to keep records and send notices electronically. Restrictions will be imposed on the use of proxies. Owners will have a forum to review by-laws and resolutions that are unreasonable, oppressive or discriminatory.
Buyers will receive better information about the strata lot they are buying. This includes: estimated contributions a buyer will have to pay in the 12 months after settlement; the minutes from the most recent AGM; a statement of accounts of the strata company; any debts owing against the lot to the strata company; whether the lot has the benefit of exclusive use by-laws and information about any termination proposal received by the strata company.
The management of the strata company will be improved. Strata companies will be able to keep records in electronic format to allow owners to more easily inspect those records. By-laws cannot be oppressive, unreasonable, unfairly prejudicial to or discriminatory against one or more owners. Strata companies will have streamlined procedures for executing documents. The standards of strata councils will be raised with statutory duties imposed on members of the council of a strata company. Council members will not be able to vote where they have a conflict of interest.
Owners will be empowered to improve their scheme and retrofit their scheme to benefit from renewable energy sources. The owners, who make up the strata company, will be empowered to improve the common property within their scheme. It will be easier to obtain approval from the strata company for owners or the strata company to install sustainability infrastructure like solar panels onto common property.
Better ongoing maintenance of schemes will be facilitated. Every strata company for larger schemes will need to prepare a 10 year maintenance plan and to have a reserve fund. The 10 year maintenance plan is aimed at assisting the strata company in deciding how much money it should set aside in their reserve fund. Larger strata schemes will need to prepare a 10 year maintenance plan to detail expected yearly costs.
Enforcing by-laws will be easier. Owners, occupiers and the strata company will be able to apply to the State Administrative Tribunal to enforce by-laws.
Strata disputes will be resolved quickly, cheaply and efficiently through a single specialist forum. The State Administrative Tribunal will become the one-stop-shop for strata disputes and will be given sufficient powers to resolve those disputes.
Providing for more flexibility in staged development. Staged subdivision of strata / survey-strata schemes will be made more flexible. If a scheme developer needs to vary a stage of subdivision, they will need to obtain: a. A unanimous resolution and b. the consents of all people with a designated interest (defined to include mortgagees, etc).
Safeguards for the termination of schemes. The first strata schemes in Western Australia were constructed over 50 years ago. Scheme buildings are ageing and many are costing owners large amounts in maintenance. Based on experience in other jurisdictions, termination and redevelopment of strata / survey-strata schemes will become increasingly common. To protect the assets held by all strata owner, the process of terminating a strata scheme will be revised.

Have Your Say

Yes. It will be important to give your feedback on these changes.

Simply CLICK HERE to visit Landgates dedicated website to learn how you can add value to the outcome.

Resources.

[1] The population projections presented in this publication cover the period 2018 to 2066 for Australia, the states and territories, capital cities and rest of state regions. https://www.abs.gov.au/AUSSTATS/abs@.nsf/39433889d406eeb9ca2570610019e9a5/566071abb7fdcfc6ca257c2e0017255c!OpenDocument

[2] This latest Population Projection of estimates are lower than previous predictions in 2013 as we were at the tail end of the mining boom. https://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/3222.0Main%20Features112012%20(base)%20to%202101?opendocument&tabname=Summary&prodno=3222.0&issue=2012%20(base)%20to%202101&num=&view=

[3] The Perth and Peel regions now stretch more than 150 kilometres from Two Rocks in the north to Bouvard in the south. Of the 800,000 new homes needed for the projected population increase, almost half – at least 380,000 or 47 per cent – will be provided through increased density and greater infill development in strategic areas such as around transport hubs, including the new METRONET station precincts and activity centres. Most of these will be built within existing suburbs in the Central sub-region. (Source: https://www.dplh.wa.gov.au/perth-and-peel-@-3-5-million-frameworks)

[4] With approximately 72 km of new passenger rail and up to 18 new stations, METRONET is a catalyst to turn over 5,000 hectares of land around new stations to desirable places for investment in housing, jobs and services for growing communities. As one of the largest single investments in public transport that the city has seen, METRONET will help positively change how people live and travel in Perth. (Source: https://www.metronet.wa.gov.au/about)

[5] Strata Titles Amendment Bill 2018. http://www.parliament.wa.gov.au/parliament/bills.nsf/07FA9EA0FF54B548482582B90023602D/$File/EM%2B80-1.pdf

It’s about finding your best home

Health | Efficiency | Comfort | Community

Are you looking for a home with reduced running costs and which is healthy, efficient, comfortable and connected to your local community? Well, you’re one of many people driving a new trend in real estate that is impacting the way your house is marketed.

The Liveability Features Framework is an exciting new initiative, backed by CSIRO, Australia’s peak scientific body, which enables up-skilled sales agents and property managers to simply and effectively identify and integrate an additional 17 Liveability Features into the point of sale or rent.

They’re called Liveability Features because they offer the potential for reduced running costs and increased comfort if used correctly.

As Liveability Real Estate Specialists, we are able to exclusively access the industry-leading PropTech “Liveability Appraisals Checklist” to deliver the additional free Liveability Features Appraisal for home owners and investors.

Your Liveability Real Estate Specialist

At Community West Real Estate we focus on how people can thrive by uncovering features within and surrounding the home that enhance quality of life, improve affordability and enhance social connection. These liveability features benefit occupants, and support lifestyle desires of those looking to relocate.

That is why we have taken the steps to ensure that we are trained Liveability Real Estate Specialists.

As one of only a handful of agencies nationally with qualified Liveability Real Estate Specialists, we are able to identify and promote up to 17 Liveability Features in your property that offer the potential for reduced running costs and increased comfort when used correctly.

Connect with Chiara today to get your own FREE Liveability Features Appraisal and understand how your home can stand out from the competition. BOOK HERE.

Liveability v’s Lovability of Neighbourhoods

Loveable neighbourhoods are always memorable. They make us feel like we belong, and often it’s the social interactions and experiences we have in the parks, cafes or streets that make us want to return.

Liveability often relates to tangible natural or built attributes of a place like local parks, beaches and lakes, schools, hospitals, historic buildings, daycare centres, public transport, restaurants, cafes and shops – many of which are found on our buyers preference list.

Social data is transforming the way we understand these two influencing factors and is beautifully explained by the Neighbourlytics CEO and Co-Founder Lucinda Hartley.

https://pursuit.unimelb.edu.au/articles/lovability-versus-liveability-what-big-data-tells-us-about-our-neighbourhoods

At Community West, we bring out the loveable features of your home and community to help define a more meaningful connection with the real estate we offer.

Go to our MAP on the home page to learn more.

An Untapped Market

From our observations over 20 years, we have seen and heard homebuyer conversation shift from aesthetics and functionality towards performance.

New CSIRO research suggests that over two thirds of home buyers now prefer energy efficient homes when given the choice (2), and 8.6 per cent have a higher purchase preference for ‘sustainability’ features than the standard version of the same design.

Our own research with apartment dwellers has identified a 24% swing towards more technologically advanced (‘future-proofed’) apartments.

Showcasing the special ‘sustainability’ features in marketing (ie. floor plans) and through communications (directly with buyers on-site) requires a more intimate connection with the design and technology, and an ability to highlight their benefits. Understanding how to spread awareness of these desirable features is our specialty.

Consumers have highlighted comfort and liveability as high priority when making home buying decisions. In fact, four main desires included comfort, health, community and affordability (3). The good thing is you don't need to be an architect, academic or scientist to truly understand what it all means.

When selling a home, your marketing and communications should consider how good design and functionality 'feels':

The Bricks & Mortar: A ‘sustainable’ home is comfortable to live in; naturally warm in winter and cooler in summer, offering natural daylight and air movement inside the home. It's a healthy home; protecting occupants from extreme temperature variations, ventilated naturally to minimise pollutants, mould and dust build up, as well as chemical off-gassing from furniture, paint and other nasties used in fit-out. It’s more affordable to run and improves the value and saleability of the home.

The Community at Large: A significant point of difference to the quality of life and wellbeing of your future buyer will be how convenient and accessible places important to them are. Natural or built attributes of a place like local parks, beaches or lakes, schools and hospitals, daycare centres, public transport, restaurants, cafes and shops - these are always desirable.

It will be important to choose a selling agent who can passionately communicate the added value these special features have over all others.

References:

1. https://reiwa.com.au/about-us/news/perth-house-sales-down-in-june,-but-10-suburbs-buck-the-trend/utm_source=pardot&utm_medium=email&utm_campaign=reiwa.com-newsletter

2. https://www.asbec.asn.au/wordpress/wp-content/uploads/2019/06/190701-ASBEC-CRCLCL-Growing-Market-for-Sustainable-Homes-web.pdf

3. Hulse, K., Podkalicka, A., Milne, E., Winfree, T. and Melles, G., 2015, I’d just Google it: media and home renovation practices in Australia.
http://www.lowcarbonlivingcrc.com.au/sites/all/files/publications_file_attachments/rp3021_project_report2016.pdf