First home buying has soared to 10-year highs as thousands of young people take advantage of stamp duty concessions, record low interest rates and the new federal loan deposit scheme to get into the market.

There is great opportunity for first home purchasers in both metro and regional locations in 2020, and all of this added activity is helping to fuel price growth amongst the entry level priced properties, as well as the house & land packages.

in a recent article, property expert John McGrath revealed

According to latest ABS data, the number of new loans issued to first time buyers in December was at its highest level since December 2009.
The figures also showed that first home buyers were borrowing more, with the average loan size up by about $50,000 year-on-year, indicating APRA’s loosening of loan criteria in July and falling interest rates in June, July and October has given young people a bit more borrowing power.

As developers start to clear lots of their previously oversupplied land stock and home sellers are achieving higher prices for their homes, acreage properties are becoming a more affordable lifestyle and as well as becoming an appealing option for many investors or astute buyers looking to land bank acres on the outskirts of Sydney ahead of the population explosion predicted during the remainder of this decade and beyond.

The historic low interest rates and the need for extra living or storage space for vehicles, equipment, dual accommodation, etc, is making acreage a very appealing option for many of today’s buyers.

The lowest home loan interest rates since the 1950s make this an incredible time to take out your first loan. Rates might go even lower this year to support our economy through the impact of the bushfires and coronavirus so, as always, I recommend taking a variable rate over fixed.
On top of the Loan Deposit Scheme are state government stamp duty concessions and First Home Owners Grants available across the East Coast in varying forms. Here are the details to remind you.
NSW - No stamp duty payable on new or established first homes up to $650,000, with concessions available up to $800,000. There is also a $10,000 FHOG if you buy land to build your first home worth up to $750,000; or buy a new house or off-the-plan apartment worth up to $600,000.

With all of the first home buyer activity plus with both investors and developers back in the market, the acreage market looks set to have a very active Autumn market.

If you have any questions about what’s happening and How’s The Acreage Market? in your area, don’t hesitate to get in contact with me.

Regards

Greg Vincent