Ferny Hills 
Deciding to make the leap from renting to buying can be a challenging one at the best of times, but when you throw a global pandemic into the mix it can seem even trickier. Whether you are a first-home buyer, investor or looking to re-enter the world of homeownership, the current climate provides some interesting opportunities for those wanting to get on the property ladder.
We have put together a few things to consider when making the decision to stop renting and buy:
Lowest interest rates in history
You just can’t ignore that borrowing right now is cheap! With the current official cash rate sitting at 0.25 per cent and strong competition between lenders, now is the time to find a great rate. Even a small saving now could potentially save you thousands over the life of your loan.
First-Home Buyers are in luck
Saving a home loan deposit is often a significant barrier for first-home buyers. The First Home Loan Deposit Scheme has been introduced to make this process simpler and allows those eligible to get into the market with a deposit of as little as 5 per cent, and no need to pay lenders mortgage insurance (which can be expensive). An important point to note about this scheme is that there are only a certain number of places available each financial year, so you need to apply quickly.
Take advantage of Government Stimulus
The Government is now offering a range of significant financial incentives to stimulate the property market. These include a range of first-home buyer incentives including grants and stamp duty concessions (depending on what state you are in) and the $25,000 HomeBuilder grant available for not only new builds but also for large renovations. So, if you are looking to enter the property market for the first time, build a new home or purchase a fixer-upper, now could be the time.
Investor behaviour provides new opportunities
While every market is different, some areas are seeing investor activity slow, therefore providing more opportunities for owner-occupiers. It is a good time to look at buyer activity in your preferred location. If it is lower than usual, then it might be an opportunity to grab a property at a great price.
Prices will go up
Property prices in the Hills District have held well during the pandemic and property economists are now forecasting only minimal price falls until June 2021 before a significant upswing in prices. Westpac’s economics team have estimated that housing values in Brisbane will rise by up to 20% over a two-year period. CBA economists have made similar predictions.
While it may not be a completely smooth ride for home owners over the next few years, the historical advice of; do your homework; buy in a good location; and plan to hold onto the property for the long term, still holds true when buying in today’s market.
As your local property experts are here to help you navigate your entry into the property market. Call the office today for a no-obligation chat about local conditions.
