PROPERTY News
With reduced competition forcing property prices down and rents increasing in many regions across Australia, now is the perfect time for first-home buyers to snap up a bargain before investors do, according to PRDnationwide.
Activity in the housing market has dropped by as much as 55 per cent over just 12 months in some capital cities according to PRDnationwide, leading to conditions favouring first-home buyers, with more properties for sale and discounted asking prices. “It’s an extremely good time to invest,” says Adam Gray (pictured) from PRDnationwide New Farm.
“I believe that house prices will be higher next year than this year so now is the opportunity.” He encourages first-home buyers who are not currently in the position to purchase to buy with a friend or relative.
“They can do this as tenants in common so they own a certain percentage of the property,” he said.
Mr Gray also suggests first-home buyers consider buying a studio apartment. “Although they are not very big, they could be a great stepping stone for an individual to get onto the property ladder.”
Gary Roden of PRDnationwide Kallangur to Brisbane’s north, said buyers can afford a first home if they are serious about it and set a plan. “For a young couple it is important to get your priorities right. Both parties should retain their employment and forget about starting a family for at least three years,” he says.
“The cost of living is so high it prevents the single person from entering to market unless they have a high paid job. “This is an excellent time for buyers to save a deposit – in previous years from 2000 to 2004 a person could not save quick enough to beat the rising price of real estate.”
Mr Roden says potential homebuyers should stop trying to compete with friends and purchase a home in their price bracket. “Most first-home buyers have many friends that they unconsciously compete with,” he says.
“If people feel like they will never get to purchase a property, then in most cases they won’t. It is all to do with attitude and good planning. “I do not believe property prices will drop much lower due to our strong economy and high employment so the best time to start saving is now.”
He warns against relying on government hand-outs or access to “easy money”.
Tips on getting onto the property ladder
• Work out your budget before you go house hunting
• Stop trying to compete with friends and purchase a home in your price bracket
• Buy with a friend or relative.
• Rent out spare rooms
• Downgrade your expectations and buy a smaller property than you had first planned
• To save for a deposit try paying more rent to your agent or parents than necessary and ask them to save it for you.
• Borrow the deposit from parents or ask them to set up a small loan against their own home to fund the deposit
• Some developers can help to contribute to the deposit by way of a rebate
• Get a high paying job and delay family plans while saving for a deposit.
