Buying a fibro home can save first home buyers upwards of $100,000.
According to new research by Raine & Horne, buying fibro has long enabled first home buyers to purchase homes on a decent block of land rather than simply settling for an apartment or townhouse.
Raine & Horne Bankstown recently sold 49 Cooper Road at Birrong for $441,500.
Despite the robust price tag, Raine & Horne Bankstown principal Robert Spitalieri says a similar brick home would fetch between $50,000 and $100,000 more.
“There is a scarcity of fibro homes in the region, so it is a great time for existing owners to sell to meet first home buyer demand. Investors looking to build duplexes are also interested in land with a fibro home attached,” Mr Spitalieri said.
According to property researcher PriceFinder, a two bedroom and one bathroom fibro house in Bankstown is, on average, 18 per cent cheaper than a brick equivalent.
Raine & Horne’s chief executive officer Angus Raine said this saving meant fibro homes represented a good value buy.
By purchasing an affordable fibro home, homeowners can pay off their mortgage quicker and build equity in the property.
“After five years, owners can upgrade to a different home or knock over the fibro home and build a new house in its place,” Mr Raine said.