Even more first home buyers in Australia are planning to sell their property within five years.
Brokernews.com.au recently published an article “Report shows dramatic shift in first home buyer behavior”. A recently published survey has illuminated how the dramatic movements in housing values over the past five years have reshaped the Australian first home buyer (FHB) market.
“The Genworth First Home Buyer Sentiment Report, conducted in June and July across 2,000 prospective First Home Buyers and 1,000 recent First Home Buyers, showed that rather than pursuing the traditional Australian dream of owning a property for a lifetime, survey participants have ‘a more pragmatic approach’ to enter the market with an ‘entry level’ property and upgrade down the road.” (brokernews.com.au)
“Around one in three (32.3 %) prospective First Home Buyers plan to sell their first property within five years, with the trend even more pronounced in Sydney (39.5%) and Melbourne (36.3%). As a result, free-standing homes are being overtaken by small apartments as the most popular property among First Home Buyers, with investment properties also becoming more prevalent among those looking to enter the market. One in six prospective First Home Buyers plan to buy an investment property as their first home, as compared to one in the ten among the recent First Home Buyers respondents.” (brokernews.com.au)
“In order to capitalise on the opportunity seen in the current market, around 60% of prospective First Home Buyers plan to buy now with less than a 20% deposit as compared to the 47.4 % of recent First Home Buyers who bought their first property with less than a 20% deposit. To bridge the gap, 75.1% of prospective First Home Buyers plan to apply for the government’s First Home Loan Deposit Scheme, 27.5% expect to ask their family for assistance and 15.8% plan to use lenders mortgage insurance (LMI)” (brokernews.com.au)
Even if buying a place on your own shouldn’t mean missing out on any First Home Owner Grant entitlements. The Grant is payable per transaction, not per buyer, so if you’re eligible, the same amount applies no matter if you buy individually or with a co-buyer. The government introduced legislation to implement the First Home Loan Deposit Scheme, a key part of its federal election campaign earlier this year.
“The scheme helps first home buyers enter the property market sooner, by providing 10,000 eligible Australians per year access to a home loan with a deposit of as little as 5%. The legislation outlines income tests to assess first home buyer eligibility in the program, as well as modest dwelling price limits.” (brokernews.com.au)
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For most people, getting a mortgage is the most significant financial decision they have made to date. Purchasing a property requires a financial commitment, but the journey doesn’t end there. You’re not just paying for a roof over your head, you’re building equity in an asset that is likely to grow in value over the years.
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Most of our clients need a lot more help to work out how they can best allocate their resources to ensure their investment is protected. That’s why we organize a free consultation with one of our lending specialists to assist you with your home loan application process. At Option, our Lending Specialists navigate the entire process, saving you valuable time by searching and comparing hundreds of loans from over 30 leading lenders.
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