It's no news that COVID-19 and the consequent economic challenges have brought many changes into the real estate world. Though the true impact remains uncertain, trends are emerging as we see start to see the tail end of the pandemic. One of these, is the dominance of first home buyers.
In particular, Queensland has returned to its usual pace with auctions, agents, and buyer activity bouncing back to the high level they were at before Coronavirus reached our shores.
The changes that have happened in the last few months have presented a very unique opportunity to step into the property market, with first home buyers dusting off their home-buying hats and making a move.
According to Property Data Group CoreLogic, consumer sentiment has started to rise dramatically following the slump in April, with first home buyer participation as a portion of owner-occupiers at it’s highest level since January 2012. This data is matched by a 40 per cent year-on-year leap in first home buyer enquiries on realestate.com.au.
What’s made this happen? Let's take a look at some of the key reasons why the COVID-19 property market is proving popular for first home buyers.
1) Record Low How Loan Interest Rates
With interest rates at an all-time low, first home buyers have never been in a better position to meet finance terms and their mortgage repayments. When it comes down to the numbers, there is little to no difference between paying rent vs. a mortgage, and that is extremely motivating.
2) Government Stimulus
When you combine the new homebuilder scheme, round two of the first home loan deposit scheme, stamp duty concession and state and territory grants, it’s no wonder that first home buyers are seeing this as a great opportunity to get into the property market. The conditions combined with the help available is ideal for those first home buyers.
3) Less competition from Investors
Though first home buyer enquiry has risen, investor enquiry has slightly decreased. Typically, first home buyers and investors contest for similar properties; reasonably priced homes and apartments around the city fringe.
However, the restrictions brought on by COVID has pulled many international and interstate investors out of the market, who may be spooked by uncertainty or unable to be physically present. This absence is a good sign for first home buyers as lower demand means property pricing is less likely to over inflate, opening the door for first home buyers.
Regardless of circumstances, purchasing a property is one of the biggest financial commitments of your life. When you’re a first home buyer, it’s arguably even more important to do your research and decide what is right for you before committing to a purchase. If at present you have a stable income, then now is certainly a fantastic opportunity to make a move with so many incentives and low interest rates on offer.
If buying your first home is on the Horizon, we have the experts who can get you there. Our team of agents know the in’s and outs of Brisbane Property and our friends at Time Home Loans can help you secure a mortgage.
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