30/11/2017 - 15:37

Mirvac plan targets first home buyers

30/11/2017 - 15:37

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Listed property developer Mirvac Group has introduced a scheme to make apartments at its Latitude Leighton Beach development more affordable for first home buyers.

Mirvac plan targets first home buyers
Paige Walker and Stuart Penklis hope the scheme will ease the pressure for Perth’s first home buyers. Photo: Attila Csaszar

Listed property developer Mirvac Group has introduced a scheme to make apartments at its Latitude Leighton Beach development more affordable for first home buyers. 

Mirvac’s Right Start initiative will apply to a selection of off-the-plan apartments in the Latitude precinct’s final stage, Compass, which will be priced to qualify for the First Home Owner Grant or stamp duty concession.

Under the initiative, the traditional upfront 10 per cent deposit will be reduced to 5 per cent on designated apartments, staggering the remaining 5 per cent over two annual instalments.

The property group will also provide Perth’s eligible first home buyers with an additional $5,000 to top up the government’s $10,000 grant, as a further means to support entry into property ownership.

Located on Leighton Beach Boulevard and Fremantle Loop, the Latitude development will comprise about 200 one-, two- and three-bedroom apartments across three buildings – Prima, Meridian and the yet-to be-constructed Compass.

Just under 85 per cent of Latitude is sold, with the majority of those purchasers choosing to owner-occupy the apartments themselves. 

Mirvac head of residential Stuart Penklis said the organisation had been focused on diversifying its product to capture a broad spectrum of buyers, with the idea for Right Start having originated in Sydney 12 months ago in response to the NSW planning minister’s call to the market to come up with a strategy targeting affordability.

“We launched it on a project at Sydney Olympic Park and quarantined approximately 60 apartments for first home buyers,” Mr Penklis told Business News.

“It was highly successful so Mirvac decided to deploy it more broadly.

“Sydney gave us the opportunity to tap into a whole host of different buyers, and that’s why we’re keen to bring it to Western Australia.

“We’re really starting to see families gravitate to apartments – not just here in WA but that’s a national trend.”

Compass will be the group’s second project to run the initiative.

WA general manager residential development, Paige Walker, said unlike Sydney it wasn’t as much of an issue having the stock available in Perth, but the deposit was still the biggest barrier.

“This really helps to get your foot in the door, especially buying at today’s prices,” she said.

“Even with Perth property prices at their most affordable in years, first home buyers in WA are still facing a significant hurdle to taking their first steps on the property ladder.

“We are easing the pressure around deposit savings.”

As per the state government’s stamp duty exemption initiative, first home buyers purchasing Compass apartments under $430,000 will also avoid paying stamp duty.

Compass publicly launched five weeks ago, and Ms Walker said a handful of the 19 apartments already sold had been transacted through the Right Start Initiative. 

“I think there’s an increase in people wanting to live more of that apartment lifestyle; connected to amenity, public transport and open space,” she said.

“Generally the younger people want to stay in the areas that they grew up.

“To get into the market and to be able to do that affordably, apartments are the best way.” 

Mirvac's Latitude Leighton Beach Development

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