Ongoing competition from investors and the ending of state-government incentives has seen first home buyer activity dwindle across Australia.
According to the latest Australian Bureau of Statistics (ABS) data, first home buyer numbers fell to a record low of just 12.3 percent in November of 2013. Property experts suggest that this decline in numbers is attributed to strong growth in the housing market which has seen home prices across the nation rise. This, in turn, is reducing home buying affordability for many first home buyers. Especially when many have only saved a deposit for a lower priced home.
However, in saying this, many property groups are suggesting that first home buyers will either enter the market for the first time or will return to the market this year after having saved enough for a deposit. Some even predict that numbers will increase by more than 20,000 in comparison to last year’s figures of 90,551 first home buyers.
Home Buying Hotspots
Home buying hotspots that represent value for money and affordability for first home buyers can still be found Australia-wide. But, it takes a willingness to thoroughly research the market, a keen eye for value, and a little vision for renovation possibilities to find bargains. First home buyers who are also willing to look at suburbs that surround or are near to higher profiled suburbs are also more likely to find property at an affordable price, which is likely to gain in value over the coming years.
Georg Chmiel, LJ Hooker chief executive officer, said that the Sydney market is full of opportunity providing that first home buyers are not looking for inner city locations. Searching further out will give them value. The best value buys in this area can be found in the South-west and Western suburbs, along with the Blue Mountains.
Of course, N.S.W first home buyers who buy a ‘new’ property rather than an established home can also take advantage of a $15,000 government ‘new build’ grant and they may also be exempt from paying stamp duty.
Other states are offering similar incentive programs, but each state has its own terms and conditions. If you are interested in finding out more, then visit our First Home Owners Grant page.
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Written by eChoice