Where are all the First Home Buyers???
Surprisingly, first home buyers made up just 12% of all loans financed last financial year. This is almost half the proportion of first-home buyers in the market before the First Home Owners Grant (FHOG) was introduced in July 2000. Back then, the proportion of loans financed generally around 25%. At the current rate, the proportion of first home buyers is expected to drop to less than 9%.
This trend is especially surprising given both the low Reserve Bank cash rate and recently lowered fixed-rate home loans, as pairing these could make for an even more secure foundation for first home buyers.
Firstly, first-time buyers are more cautionary than usual. While the cash rate is low now, economists are predicting a change in the future and this is in the back of their minds and secondly, house prices are expensive and this is an obstacle. Whilst we say this, prices in many regional areas across Queensland have seen prices come down.
But there’s light at the end of the first home buyer tunnel: those looking to enter the property market can take advantage of low rates and consider options with a low deposit. There are a few lenders that we work with that require very minimal deposits.
Borrowers may need to weigh up their options before getting into the market. For instance, those who are playing the ‘waiting game’ with property prices may be surprised to find that locking in a fixed rate in the current market might save them heaps in the long run.
It is so crucial that borrowers actually have the financial means to accommodate a loan. Saving as much as possible on a home loan is great, provided they have the resources to see the loan to fruition.
So while the current market has some first home buyers running for cover, with the right advice and guidance, those looking to enter the property market for the first time can see how lucrative the current conditions can be.
We are happy to provide all the right advice you need to make the very best decision possible.