Recent changes in the property market have created an opportunity for First Home Buyers to get into the market. Especially those with deposits ready.
According to Domain’s Property Price Forecast, property prices are expected to remain relatively flat in capital cities for 2019, this gives purchasers a little breathing room – something they have not had in many years.
First-timers are also facing less competition from investors as they leave the market due to tightened lending restrictions and reduced opportunity for short-term capital growth.
I sat down with Bliss Conveyancing’s Principal, Judy Bliss to ask her advice to first-home buyers looking to get their foot in the door in 2019.
Tip #1 Seek and understand your borrowing power before going too far into your search. Keep in mind recent changes to the lending means what you could have borrowed six months ago is not what you’re going to be able to borrow today.
Tip # 2 Be clear on the price of property in the area you want to buy
Tip # 3 Ensure the property has the best prospects for growth – It’s really important that your first property selection right, remember this is the property that is going to help you up the property ladder. When selecting a property Judy recommends it should be open planned, have good natural light and outdoor space and when looking for a suburb, it should be close to schools and transport. If you’re looking at purchasing an apartment it is important to make sure it is well located in terms of amenities and public transport. A car space is also important whether you need it or not. Remember this is a feature a future buyer would for and therefore affects the resale value.
Tip # 4 Your first property doesn’t have to be your home for life, buy something you can afford. You most likely will not be able to tick off all your wish list items on your first property. However, Judy recommends considering how long you will live in the property and looking at what your needs will be for the next five to seven years, as upgrading frequently can come with significant costs.
Tip #5 A risk in the down market is that buyers do not have the same level of choice and there are fewer properties at auction. Buyers need to avoid paying more than the property is worth.
Tip #6 Keep Saving!! You’re better off getting a lower loan ratio and smaller debt.