First-home buyers are back — and they are back in large numbers. The latest ABS data shows 28.5% of home loan commitments in May were first-homebuyers – compared to 20.4% two years ago.
Investors have dropped off, putting first-time buyers in the prime position. Realestate.com.au’s chief economist Nerida Conisbee says this is a perfect time for aspiring property owners to take action.
“First-home buyers do have the property market to themselves now, whereas previously they were competing with investors,” she says.
The Federal Government will roll out a scheme in January allowing first-home buyers to access finance with a deposit of only 5%. The scheme will save FHBs up to $10,000 in lenders mortgage insurance charges.
The Mortgage and Finance Association of Australia’s chief executive officer, Mike Felton, says a combination of factors have made it more appealing for FHBs to enter into the market.
“They have lower interest rates, lower personal taxes and a lowered serviceability, which has turned the tables in favour of the first-home buyer,” he says.