First Home Buyers Have Big Opportunities
Author: Alex Morrison Date Posted:27 November 2019
First Home Buyers Have Big Opportunities
Uplifting news has been scarce over the past ten years for first-home buyers in Australia’s capital cities, with property prices soaring and leaving home purchases unattainable for many. But young people are now encouraged to keep dreaming, despite the falling numbers of those seeking a first home.
If you are considering plunging into the property market, why not review your options and check out the stamp duty concessions and grants now available?
All Australian states and territories offer help to first home buyers, and the grants and concessions apply not only on new homes (1). Governments are always coming up with changes, so young people and first home buyers need to know about them so that they can take up the opportunities.
City Buyers Can Save For a Deposit Sooner
In an article in August’s edition of the Switzer Report (1), John McGrath sees a huge opportunity now for those youngsters feeling left behind by the vagaries of the housing market to venture out and step onto the property ladder.
Yes, in cities such as Melbourne and Sydney, affordability is tight. However, McGrath thinks there’s a significant opportunity arising now in prime eastern seaboard markets for first home buyers.
People looking to buy a home in Sydney are saving their 20 per cent deposits faster than anywhere else, he says, taking 21 months less time than it did in 2017. In Melbourne, prospective buyers saving their deposit four months sooner.
Opportunities in an Overstocked Apartment Market
Lots of opportunities lie in the impending oversupply of new apartments in Brisbane, Melbourne, and to a lesser extent, in Sydney. Prices fall when the market is overstocked. However, to meet the 20 per cent requirement in Sydney, first home buyers need a deposit of an estimated $173,600 - based on the median house price in September.
This figure is down $30,400 since June 2017. However, first home buyers need to get in as soon as possible because house prices look like rising again in 2020. However, the national index is still at 6.8 per cent below the peak of October 2017, which shows that buyers still have enough time to capitalise on improved housing affordability before a return to record highs, according to a News.com article(2) quoting Tim Lawless, CoreLogic’s head of research. Mr Lawless also said global political uncertainty and a deteriorating national economy might also have an impact on property price growth in the short to medium-term.
The Apartment Oversupply Means You May:
Have more time to choose your home purchase
Get a better price
Have more power to negotiate
Receive thousands of dollars in grants and duty concessions
Then There’s the Insurance
For first home buyers and veterans, choosing which house to buy needs a lot of thought when it comes to your finances, the price, the location, property size and appearance. However, the decisions don’t end when you have the keys in your hot little hands. An essential consideration is home and contents insurance what is probably the most expensive purchase you'll ever make in your life. It is prudent to make sure you’re covered for damage, theft or destruction. You really should ensure your home insurance is organised so that the minute you have settled, your home is protected. Although home and contents insurance is sometimes sold as one package, they are two separate types of cover, so you need both.
We wish you an abundance of providence in your first home buying endeavours!
Finding quality furniture at an affordable price for your new home can be overwhelming. But our friendly staff at Inside Outside Furnishing & Lifestyle can take care of you. We offer an extensive range of stylish indoor and outdoor furniture at great prices for first home buyers and anyone wanting quality, affordable decor. Our variety of lifestyle products will inspire your renovations, and if you have a family celebration or even a camping trip, we have everything you need. Message us on our Facebook page https://www.facebook.com/insideoutsidefurnishing, email firstname.lastname@example.org or call Sarah on 0400 544 364.
Alex Morrison has worked with a range of businesses giving him an in-depth understanding of many different industries including home improvement, financial support and health care. He has used his knowledge and experience to work for clients as diverse as Adroit Insurance, MyHome Clean and Me Bank to help them reach their business goals.