First Homebuyers In a Changing Market
In recent times, the majority of news relating to the property market has centred on the rapid increase in Sydney house prices, with this market in outpacing the rest of Australia.
However in the rest of the country, capital city dwelling prices have been stagnant or in some cases moving slightly down. There are many factors that come into play when considering why this is happening. With reasons such as lower commodity prices, and an overall slowing economy.
One reason that is often overlooked is the effect that first home buyers have on the overall property market. This can be explained in the following way:
When a first home buyer enters the market to buy an established property, they are creating a “new” demand in the market. The property they are purchasing is likely a property owned by a previous first home owner looking to upgrade.
As property owners look to upgrade in their early years of home ownership, having new entrants (first home buyers) enter the market and creating new demand is critical, this has the impact of maintaining, and increasing property values over time. Without these new entrants creating this demand, property values may stagnate or even reduce.
The WA State Governments recent changes to the first home owners grant and stamp duty concessions have impacted the first home buyer market, to the point that we are now seeing less first home buyers entering the market as a whole
However all is not lost for the embattled first home buyer, as there are still lending options which specially cater for this market with lenders that will accept a minimal deposit, or lenders with polices that allow borrowers to obtain assistance from family members.
For people in the finance industry, it is important to educate first home buyers, with the options that are available to them, and find a home loan product that is suitable to their needs.
To find out how you may qualify for a home loan, and discuss the options available to assist first home buyers, please contact one of the friendly consultants at Top Mortgages today on 1300 308 225.