COVID First Home Buyer Opportunity
First-home buyer confidence has hit an eight-year high as rookie property purchasers buoy a market hit hard by COVID-19.
The impact of the coronavirus epidemic on Australia’s property market remains uncertain, as April home sales have slumped but search activity jumped by 50 per cent nationally.
Many industry experts point to these paradoxical conditions brought on by a once-in-a-century event as a time of opportunity in the market. First-home buyers appear to agree.
Property data group Core Logic reports, prior to the onset of the coronavirus crisis, first-home buyer participation as a portion of owner-occupiers was at it highest level (29 per cent nationally and 31.4 per cent and 27.1 per cent respectively in our biggest markets in Victoria and NSW) since January 2012.
That data is matched by a 40 per cent year-on-year leap in first-home buyer enquiries on realestate.com.au in April. Over the same period investor enquries have fallen by 20 per cent.
“First-home buyers are well and truly in the market and are more buoyant than you might expect,” realestate.com.au chief economist Nerida Conisbee said.
“It is a slower market and they like to transact in a market like that. First-home buyers tend to be really cautious, they like to take their time and know that they are doing something right.
“Investors are not very active in the market right now. First-home buyers and investors usually target similar homes so the absence of investors is a good sign for those looking to make their first home purchase.”
Another factor that has provided first home buyers with the confidence to enter the market is the government’s First Home Loan Deposit Scheme, which enables home hopefuls to buy a property with a deposit as low as five per cent and without lenders mortgage insurance.
With interest rates so low, for a lot of young people there is little or no difference between paying rent or paying off your mortgage. Adding that to government grants and guarantees, stamp duty concessions and discounted prices due to COVID-19 it really is a great opportunity. In many ways it’s never been better.
First-home buyers do need to have a strategy, understand the ongoing costs of owning a home and seek professional financial and legal advice before committing to making their dreams come true.
Will the market continue to fall? Will stamp duty be removed? Is this a safe time to buy?
These are among the key concerns of first-home buyers.
As a first-home buyer you want to look at your purchase as a long term asset. Provided you buy well, the right property in the right location and hold it long term, you will make money.
Are you a first home buyer and would like assistance in making your first property purchase? Send me a message HERE, and I will send through some information to assist.
The above information has been sourced from Realestate.com.au. To read more on the deposit scheme CLICK HERE.