The federal Help to Buy scheme launching in 2026 is a game-changer for first home buyers in Kogarah. But does it work for Kogarah's property market? Let me break down exactly what this means for you.
What Is the Help to Buy Scheme?
The Help to Buy scheme allows eligible first home buyers to purchase a property with just a 2% deposit, with the government contributing up to 30% equity for existing homes (40% for new builds).
Key Eligibility Requirements
- Income cap: $90,000 (singles) or $120,000 (couples)
- Property price cap: $950,000 in Sydney
- Must be: Australian citizen, 18+, first home buyer
- Owner-occupier: You must live in the property
- 1-2 bedroom apartments near Kogarah Station (T4 line, major interchange)
- Older-style units in established blocks
- Entry-level townhouses (limited availability)
- Refinancing
- Using savings
- Partial buy-down over time
How It Works in Kogarah
With Kogarah's current median unit price of $780,000, here's a real example:
| Component | Amount |
|---|---|
| Property Price | $780,000 |
| Your Deposit (2%) | $15,600 |
| Government Equity (30%) | $234,000 |
| Your Mortgage (68%) | $530,400 |
💡 What This Means: Instead of needing a $156,000 deposit (20%), you only need $15,600 to buy in Kogarah.
Which Kogarah Properties Qualify?
In Kogarah, most units fall under the $950,000 price cap. This includes:
The median house price of $1,850,000 exceeds the cap, so houses typically won't qualify unless significantly below median.
Kogarah's Unique Advantages for First Home Buyers
Transport & Commute
Kogarah Station (T4 line, major interchange) gives you direct CBD access. Kogarah is known as a established medical/hospital precinct with quality housing.
Schools in Kogarah
Local schools include Kogarah Public School, St Patrick's Primary, Kogarah High School - important for young families planning ahead.
Lifestyle
Kogarah attracts medical professionals and established families.
Combining Help to Buy with Other Grants
Here's where it gets exciting. In Kogarah, you can potentially stack:
1. Help to Buy - 30% government equity 2. First Home Owner Grant (NSW) - $10,000 for new homes under $750,000 3. First Home Buyer Assistance Scheme - Stamp duty exemptions 4. First Home Super Saver Scheme - Use super contributions for deposit
Total Savings Example for Kogarah
For a $780,000 unit in Kogarah:
| Benefit | Saving |
|---|---|
| Reduced deposit requirement | ~$140,400 saved |
| Stamp duty exemption (if eligible) | ~$31,200 |
| Lower mortgage = lower repayments | ~$1,170/month |
The Fine Print: What You Need to Know
Repaying the Government Equity
When you eventually sell, you repay the government's 30% share at market value. If your property increases in value, so does their share.
Example: Buy at $780,000, government contributes $234,000. Sell at $936,000 (20% growth), you repay $280,800.
Buying Out the Government
You can buy out the government's share at any time through:
Is Kogarah Right for Help to Buy?
Kogarah is ideal for Help to Buy because:
✅ Multiple units under $950,000 price cap ✅ Strong capital growth potential (established medical/hospital precinct with quality housing) ✅ Excellent transport via Kogarah Station (T4 line, major interchange) ✅ Quality schools for future family planning ✅ Established amenities reduce living costs
My Advice for Kogarah First Home Buyers
After 25 years selling in Kogarah and surrounding suburbs, here's my recommendation:
1. Get pre-approved early - Know your budget before the scheme launches 2. Focus on quality locations - Walking distance to Kogarah Station 3. Don't rush - The scheme runs until 2034 (10,000 places annually) 4. Consider future needs - 2-bed units have better resale than 1-bed
Ready to Buy in Kogarah?
I've helped hundreds of first home buyers in Kogarah find their perfect property. Let's discuss how Help to Buy applies to your situation.
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