First Home Buyers Staking a Claim
First-home buyers are staking their claim on property markets around the nation once more, with activity increasing by about 13 per cent in the past year, according to the Real Estate Buyers Agents Association of Australia (REBAA).
According to the Australian Bureau of Statistics, the number of new loan commitments for owner-occupier first home buyers in December 2023 (seasonally adjusted) was 12.9 per cent higher than the previous year.
REBAA President Melinda Jennison said the rapid rise in first home buyer activity during the tail-end of last year, in particular, could be attributed to the peak of the interest rate cycle having passed.
“Many first-time buyers were waiting in the wings for a clearer interest rate picture to emerge, which was the case at the end of last year,” Ms Jennison said.
“Indeed, it certainly looks like this year will be about interest rate reductions rather than rises — a positive scenario for all mortgage holders.” Ms Jennison said it appeared that the rental crisis was motivating more and more people to become homeowners.
“Rising first home buyer activity is often the case when we experience periods of strong rental growth, with many tenants often running the numbers to discover that becoming a property owner makes more financial sense for them,” she said.
“Homeownership is not only one of the dreams of most Australians, but it is also one of the simplest ways to secure your financial future.” Ms Jennison said while government schemes to help first-time buyers, such as Help to Buy, were attractive, it was essential to understand the future impacts on your home ownership journey beforehand.
“But schemes like this, as well as First Homeowner Grants, need to be thoroughly understood to ensure the properties for which these schemes apply align with the longer-term goals of the individual,” she said. Ms Jennison said it was vital that prospective property owners recognised the importance of getting their first property purchase right.
“Your first property won’t be your last, but it is important that it is the best dwelling you can afford to purchase with the most upside potential,” she said.
“By purchasing strategically, first home buyers can fast-track their wealth-building journeys.”
For more first-time homebuyer tips, read this article online at www.intouchmagazine.com.au.
