Millennials drive boom in new homes across Ipswich

MILLENNIALS are driving property growth in Ipswich, choosing to take advantage of low interest rates and incentives to get off the rental roundabout.

Jackson Wales from Ray White Ipswich.

MILLENNIALS are the driving force behind the property boom in Ipswich, choosing to take advantage of low interest rates and government incentives to get off the rental roundabout.

With the median price for houses in Ipswich sitting at $350,000, many millennials (people born between 1981 and 1996) are taking advantage of government incentives to use as a deposit. They are buying properties that are not only new, but that come with all the bells and whistles, a factor that has many builders going the extra mile to entice buyers.

Investors too are loving the pricing in Ipswich, with yields for investors between 3.5 and 4.5 per cent. Ipswich is continuing to please buyers and investors alike.

Deebing Gardens is a prime example of the growth in Ipswich, with a third stage now open to buyers. It joins several developments across Ipswich in spots like Ripley, Walloon and Springfield, where buying a house and land package doesn't mean borrowing seven figures like it does in Sydney.

Jackson Wales from Ray White Ipswich has seen the development at Deebing Heights become another example of buyers looking to enter the home ownership market, and says it is still a sign of things to come.

"I don't know exactly percentage wise, but I can tell you that from my experience the people we are dealing with mostly are first homebuyers. I would agree millennials are the main drivers," Mr Wales said.

"They are definitely local. I'd say about 90 per cent of buyers are from Ipswich. Out of 38 units that were sold recently in Raceview, I think 30 were locals.

"The grant has a large influence on making the decision to buy. When people are looking at plans, that $15,000 is great incentive."

The dream of owning your own home still exists, despite millennials having a reputation for travelling and never leaving home. The attitude or the culture is the same as it has always been; having the 'Great Aussie Dream' to have your own home, and that $15,000 is the 'get-off-the-couch' moment," Mr Wales said.

"I don't think things would change much if the grant disappeared, but at the moment with the banks and the royal commission, they are taking their time to get finance through to people. With some new properties, I've had buyers who have been waiting two months for the paperwork to go through.

"I'd still recommend people shop around for home loans. I had one lady recently who put in an offer based on a pre-approval, and she felt she was told what she wanted to hear until the crunch came.

"I'm selling lots of new homes and it is taking about a week to 10 days from hitting the market to being sold. These units have air-conditioning, blinds, dishwasher, everything is there. You don't buy a car and then race out to buy extras for it. People today want everything done from the start. Not all builders are doing that, but the ones that do are selling quicker."

With a median price of homes in Ipswich at $350,000, it seems the property market is still going to be in high gear for a while yet.

"I think this is going to continue, because Ipswich is undervalued," Mr Wales said.

DREAMS: Josh Wardell with partner Samara Thompson on the block of land where their house is currently under construction

The 'Great Aussie Dream' is still very much alive

JOSH Wardell and his fiancee Samara Thompson are getting into the property market at an age that most of us spent partying.

After renting for years, the couple are excited about the fact they will be off the rental roundabout and be able to hang pictures on the wall without asking for permission in triplicate.

"We're building a four bedroom house in Deebing Heights. I had a goal that when I finished my university degree within five years we wanted to build a house and go to Europe," Mr Wardell said. "So we looked at the budget and worked out that we could put a deposit on the house and then travel afterwards. All up, the house and land is $450,000.

"While we were renting, we always felt like we were paying someone else's mortgage If we are going to pay that kind of money each week it might as well be our own mortgage.

"Putting up pictures was a big no-no, and we are going to have that freedom now. The frame has just gone up and everything should be ready by February."

Josh and Samara can't wait to see the finished product and have some advice for other Millennials.

"Deebing Heights is a nice quiet area. We will be able to see Mount Coot-tha from our front porch, and mountains from the kitchen.

"You're saving so much money when you're not paying rent and having inspections every couple of months. We feel like we are going to have some freedom and not be told how well we are looking after the place. The package we got from the builder was really good. We have a walk-in pantry, second living area. It's going to be great.

"If you have the passion and the dream to do it, go for it. You learn so much about finance, building and it's a great journey to go on."

Originally published as Millennials drive boom in new homes across Ipswich