There’s no doubt that first-home buyers and investors have found that gaining footing in the property market can be tough. Prices, especially in Perth’s metro areas, are at an all-time sky-high. This makes it increasingly challenging to get enough for a deposit together.
We are all familiar with services like Afterpay, Zip Pay and Humm. Now, imagine that similar model offered within the Perth property market.
Well, we have news for you, because Buy Now Pay Later is beginning to create a formidable stamp in real estate. As the affordability and viability of owning a home continue to be increasingly difficult in most major Australian cities, including Perth, this model decreases the barrier to entry into homeownership.
The concern of entering the property market is especially the case for the younger generations. This paired with the repercussions of the national housing market rebounds from the aftermath of COVID-19. The Afterpay, Zip Pay and Humm of real estate couldn’t be knocking at a more convenient time.
Faced with a pandemic, saving up for a deposit for your first home is a big challenge. The Buy Now, Pay Later scheme understands saving up a lump sum to invest in a big ask.
Buy Now, Pay Later gives investors and owner-occupiers alike an alternative avenue to realising their dreams of property ownership.
Buy Now, Pay Later – how does it work?
If you have used Afterpay, Zip Pay or Humm, then the concept will be an easy one for you to digest.
In a ‘world first’, Bricklet allows fragmented property investors to pay for their ‘bricklets’ with a buy now, pay later (BNPL) scheme, with monthly repayments made over 18 months. With an initial 10% paid over 6 months.
Buy Now, Pay Later works similarly. Home purchasers must pay an initial deposit of 2.5% of the property price. Three months after settlement, they pay another 2.5%. After an additional three months passes, the home purchaser is required to pay another 5%.
Therefore, the purchaser pays a deposit total of 10% over a span of 6 months, rather than paying that cash in its entirety, upfront. This eases cash flow and doesn’t strain finances by paying a lump sum.
The federal government’s First Home Buyers Assistance Scheme provides a duty exemption on vacant land valued up to $350,000 and concessions for vacant land valued between $350,000 and $450,000. Some parameters exist when leveraging this scheme. One of those boundaries includes keeping our homes’ land component under $350,000. This is in place so that buyers don’t have to pay stamp duty either.
Conveyancing fees, stamp duty, and other property costs are also bundled up into a 6% fee, and 10% of the brick price is also paid upfront.
To learn more about our real estate Perth firm, ProProperty Group, be sure to view our agency profile, acquaint yourself with our property management Perth team members, and of course, visit our current property listings. We look forward to assisting you with your property ownership goals, and exploring the opportunities that may exist for you to get into that ideal home promptly! We are a preferred real estate agency in Perth.
