During the past week, the property market and the lack of affordable housing for younger buyers has been a major topic of discussion. In response, the federal government has introduced various budget fixes, including an expansion of the First Home Guarantee. Previously, only singles, couples, and de-facto partners were eligible for national and state First Home Guarantee schemes, but now any two qualifying individuals can apply, including friends or siblings. The scheme is also open to non-first time buyers who haven’t owned a home in 10 years. While these changes are welcomed by many, some believe that more could have been done to assist homebuyers in a difficult market. Eliza Owen, Corelogic’s head of residential research, argues that while these changes make the policy fairer, they may not be effective in promoting more equitable home ownership across income distributions due to the relatively high-income thresholds. However, if interest rates decline, these schemes may become more attractive to hopeful homebuyers comparing the cost of taking on mortgage debt versus renting. Overall, while the schemes may benefit those at certain income levels or those who can afford the first deposit for a home, some believe that more action is needed.
Home loan schemes aside, what about the market?
The availability of properties for buyers is an important factor to consider in the property market. Recently, SQM Research reported a 9% decrease in national residential property listings in April, indicating a hesitancy among potential sellers. This decrease was particularly significant in Sydney, which saw a 13% decline, while Melbourne, Brisbane, and Adelaide also experienced declines. It is essential to research the local market to understand the availability of properties for purchase. If there are fewer listings in your desired area and high demand, you may end up paying more for a property. It is also important to compare home loans to find one with a good interest rate and suitable features. Conducting local property reports, monitoring recent listings, attending open houses and auctions, and comparing home loans are all crucial steps in making informed decisions in the property market.
The information provided is general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.
