12 Oct 2011
Over the past year, first home buyers have been noticeably absent from the Australian real estate market, however it looks like their confidence in the market is starting to return.
Figures from the Australian Bureau of Statistics show that first home ownership is on the rise and there seems to be a few key reasons why they have come out of their long hibernation.
The first of these is interest rate stability. According to the Genworth Homebuyer Confidence Index and QBE LMI ImiBAROMETER Report 2011, 60% of first home buyers consider the interest rate to be the most important consideration in choosing a mortgage.
With interest rates having remained steady at the cash rate of 4.75% since November last year, and likely to stay on hold for at least a little while longer, first homebuyers are seeing property ownership as a less risky venture than they probably were this time last year.
Another factor that is likely to have influenced first home buyers is property prices. Many parts of the country have been experiencing a lull in real estate values and there are some bargain properties to be had that will likely be worth a lot more in the years to come. Add to this the fact that rents have been rising, and all of a sudden first home buyers are seeing a lot more value in owning their own home.
For those first home buyers out there who are uncertain about how to afford to get into the property market or how to make those first steps – simply go and ask the professionals for advice and arm yourself with as much information as possible.
Talk to mortgage brokers and real estate agents and find out what your options are. Home ownership might be well within your reach and in a few months time you might be turning the keys in the front door of your very first home.