First home buyers grab a bigger slice of the pie

First home buyers are finally getting a bigger piece of the east coast property pie, thanks to the availability of first home buyer incentives and the easing in investor activity.

Numbers are up from this time last year all across the eastern seaboard, which includes the mainland states of NSW, Victoria and Queensland.

ABS housing finance data shows that across the country, there were 8,782 housing finance commitments in February 2018.

As a share of all owner occupier commitments, first home buyers accounted for 17.9% in February 2018 compared to 13.3% in 2017.

Here’s a quick state-by-state breakdown

NSW: In February 2018 there were 2,246 first home buyer housing finance commitments compared to 1,105 the previous year which is an increase of 103.3%.

“Since the end of June 2017, stamp duty concessions have become available and over the eight months there have been 18,400 commitments compared to 10,857 over the previous 8 months,” says Corelogic’s Cameron Kusher.

Victoria: There were 2,619 finance commitments to first home buyers in February 2018, which is a 38.6% increase from February 2017.

“Victoria also saw stamp duty exemptions go live on July 1 last year. From the end of June there have been 23,996 first home buyer commitments compared to 17,522 over the previous 8 months,” says Kusher.

Queensland: There were 1,839 first home buyer housing finance commitments in February 2018, which is marginally higher than February 2017.

“First home buyers have been much more active over recent years than in NSW and Vic although, it should be noted investors have been much less active in the Queensland market,” says Kusher.

What can it all be put down to?

Kusher says first home buyer activity is being aided by market incentives such as first home buyer grants and stamp duty concessions.

He adds that with demand from the investment segment expected to continue to be weaker than it has over recent years this may afford more opportunities for first home buyers to enter the market.

“While this may be some long overdue good news for potential first home buyers, they should continue to exercise caution,” he advises.

“After many years of strong value gains in Sydney and Melbourne values are declining at a time in which first home buyer activity is rising. First home buyers that buy into a falling market may be entering into a negative equity position.”

How we’ll help you

As Kusher advises, it’s important to exercise caution when purchasing your first home to ensure you don’t crash into any hurdles that trip up a lot of first home buyers.

This is where we can help.

We’ll not only help you secure a fantastic loan, but we’ll help you factor in wiggle room for other areas such as possible market fluctuations, interest rate rises, and unexpected costs associated with property purchases.

We’re also well informed on all the approaching deadlines, such as the $20,000 Queensland first home buyer closing date of 30 June 2018.

Keep in mind that all of theses considerations are very much dependent on your individual situation and exactly where you’re looking to buy property.

So if you want more in-depth tailored advice in this area, come in for a chat.

We’re more than happy to run you through your options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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