First-home buyers have the market to themselves
First-home buyers are in the plum position to pounce with investor numbers plummeting across the country. See our First Home Buyers Bible for everything you need to know.
First Home Buyers
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First-home buyers are back — and they are back in droves.
Latest Australian Bureau of Statistics data shows of all housing finance commitments in May, 28.5 per cent were first-homebuyers.
Two years ago just 20.4 per cent were first-home buyers.
Investors have dropped off, putting first-time buyers in the plum position to pounce and that is why we have compiled a special report for you today.
It has everything you need know, right from the start of your home purchasing journey — including saving a deposit and huntingfor the right property — to signing the dotted line on a property contract.
It also features the top 20 suburbs to buy in your state and its capital city.
And we’ve got the best advice from experts like Realestate.com.au’s chief economist Nerida Conisbee — who says now is a perfect time for aspiring property owners to take the leap.
“First-home buyers do have the property market to themselves now, previously they were competing with investors,” she said.
“A lot of first-home buyer grants have also been revamped and we know first-home buyers are very keen on grants.”
The Federal Government will roll out a scheme in January next year allowing borrowers to only require a five per cent deposit,rather than the usual 20 per cent.
This could save them up to $10,000 in expensive lenders mortgage insurance charges.
Borrowers with an income of up to $125,000 (or $200,000 for a couple) could be eligible for the deposit reduction from January1.
The Mortgage and Finance Association of Australia’s chief executive officer, Mike Felton, said a combination of factors hadmade it more appealing now for first-time buyers to crack into the market.
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THE TOP SYDNEY SUBURBS FOR FIRST-HOME BUYERS
TOP INNER AND MIDDLE SUBURBS FOR FIRST-HOME BUYERS
“They are facing lower interest rates, lower personal taxes and a lowered serviceability … they have turned the tables infavour of the first-home buyer in allowing people to get into the market,” he said.
“There has also been an increase in first-home buyer contact to brokers.”
First-time buyers could also be exempt from paying costly stamp duty which often runs into tens of thousands of dollars andprotects the lender not the borrower if the borrower defaults.
But Mr Felton said new buyers needed to “make sure their house was in order” and their expenditure was under control becauseit would affect their affordability.
Ms Conisbee also noted that despite financial institutions tightening up their lending in recent years, interest rates wereat rock bottom levels making borrowing cheap.
“First-home buyers are seen as a relatively save option to lend to provided they can prove they have got a deposit together,” she said.
“They are seen as safe because they are usually young and have a long income-earning potential and are early on in their career.”
Originally published as First-home buyers have the market to themselves