CONFIDENCE AT AN ALL TIME HIGH FOR AUSTRALIAN REAL ESTATE FIRST HOME BUYERS
In a boost for the Australian property market, a Commonwealth Bank report issued on 17 July 2019 showed that 91% of all first home buyers believed owing a home was now within reach. This is believed to be the highest figure for decades.
Economist Andrew Wilson said the fundamentals for first home buyers had probably never been better, with a record low cash rate of 1%, expectation of further cuts, stamp duty concessions, and the Australian Governments First Home Loan Deposit Scheme (FHDS) coming on line next year.
The survey shows:
91% of potential first-home buyers believe owning a home is now within reach.
39% believe their parents can help them with the initial deposit required.
28% of those under 30 intend to buy investment property within the next 24 months.
First home buyers in Victoria and NSW also benefit from stamp duty concessions up to properties valued at AU$600K and AU$650K respectively.
First Home Loan Deposit Scheme
The government said the purpose of the scheme was not give a grant to first home buyers (which immediately would push up prices) but rather to cut the time they need to save a deposit by at least half.
WHY THE SCHEME IS SO IMPORTANT:
- Those with a 5% deposit can purchase a property (if it’s their first) immediately, (after Jan.1) by taking advantage of the grant.
- Parents will be able to lend their children the 5% if they don’t have it, well within the means of many parents, with Australian's being reported as the world’s second richest people (after the Swiss).
- Also, parents may be able to access equity in their own homes, to get the 5% deposit out. With Australia’s high nearly 65% home ownership rate, and with 48% of those with no debt or home loan, this equity should be easy to obtain, as it will be a small fraction of the value of their own homes.
DO YOU HAVE CHILDREN IN AUSTRALIA? THIS COULD BE A ONCE IN A LIFETIME OPPORTUNITY TO GET THEM ON THE HOUSING LADDER.
But you will need to act fast.
The scheme is expected to be oversubscribed as it is limited to just 10,000 borrowers.
The government is still putting the finishing touches to the scheme, including whether to put a cap on how many can access the scheme in each state and territory, and whether it should work on a “first n best dressed “basis.
First home buyers in Melbourne enjoy even more concessions