So what are the 2012 first home buyers doing? Frank Valentic
So what are the first home buyers doing in the market now? They are struggling to make the transition to home owners as they have in every generation. I can remember being a first home buyer in 1994 and I had the same problem trying to get into the market. One year later and having missed out on three more affordable properties, I ended up getting into the market with my first home in Brunswick East in 1995, a three-bedroom brick Edwardian for $168,000. Prices have increased by 10% each year since, making affordability a real issue for first home buyers.
Our buyer’s agent company over the last 12 years has seen what works and what doesn’t work. So our top five tips for first home buyers across Victoria at the moment are:
So what can be done to help first home buyers further?
In summary, first home buyers are the most important piece of the property market jigsaw puzzle. First home buyers demand underpins our property market as it then encourages investors and the next middle group of buyers to “upsize” or trade-up. It will be interesting to see how many more first home buyers enter the market with rates reducing further.
First home buyers’s activity affects price movements and when interest rates start dropping, this also brings out more investors in the market. There are a definitive number of first home buyers out in the market, averaging around 21% over the last 21 years and the recent incentives have just encouraged these buyers to purchase earlier.
The State First Home Buyer’s new property grants of $13,000 expired on June 30 2012 in favour of a broader market stimulus through first-home buyer stamp duty cuts.
A 20% discount had previously been introduced, with another 10% discount to follow from January 1, 2013.
The recent high demand has fallen off from a peak of 30% to a low of 15% and it will take a while for first home buyers to increase to high levels again.
This article was written by Frank Valentic, Buyer’s Agent of the Year REIV (2007, 2009) REIA (2008, 2010), and Managing Director of Award Winning Buyer’s Agency, Advantage Property Consulting.
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