With all of the above factors there hasn’t better time to act. Success is an action sport, so don’t regret not being part of this once in a lifetime to get one the property ladder.
Historically low interest rates as well as a relaxed lending landscape means that the next year is likely to be first home buyer heaven.
Plus, the Federal Government’s First Home Loan Deposit Scheme comes into play at the start of next year, too.
The scheme will help 10,000 first-time buyers into the market with deposits as low as five per cent with the government underwriting the Lenders Mortgage Insurance or LMI.
In Brisbane, the scheme will apply to properties priced up to $475,000, which means first home buyers will have a choice of buying a house or a unit because of our more affordable property prices.
In Sydney and Melbourne, on the other hand, the price caps of $700,000 and $600,000 respectively means that first timers will likely only be able to buy a unit if they want to take advantage of the scheme.
Buying over renting
The low interest rate environment means that it could be cheaper to buy than pay rent, with many rates beginning with a three at the current time.
Plus, not only has the cost of money never been so low but the onerous credit restrictions are also starting to ease.
The rent that you currently pay can also count towards your genuine savings when your loan application is assessed by lenders – just make sure there aren’t any late payments as they could count against you.
Another positive for people looking to acquire their first property soon is there are fewer investors in the market at the moment.
That’s important because investors and first home buyers usually compete for the same properties, however an investor’s bigger budget can sometimes push prices past what a typical first timer can afford.
The government’s deposit guarantee will potentially save first home buyers thousands of dollars in LMI, which is an insurance policy for the lender at the end of the day that is charged when deposits are lower than 20 per cent.
Saving the initial deposit has always been one of the most difficult elements of buying your first home, so the scheme is set to help plenty of young people on to the property ladder for the first time.
There is no doubt that the market is set to be ideal for first time home buyers or investors over the next year.
It will likely pay to make your move sooner rather than later if you ask me.