First-Home Buyers with Secure Jobs Still Real Estate Shopping

Buying a first home – it’s an unnerving and exciting time. The current climate is making purchasing a home an even more thrilling endeavour, with buyers wrestling with often conflicting circumstances such as uncertainty about the future versus fantastic buying conditions.

Australia’s housing market has kept solid, despite dire predictions that have so far not come to pass. And as confirmed by Domain, it looks like those first home buyers will be influential in keeping Australia’s housing market ticking along, as brave buyers take advantage of the favourable conditions and take that all-important first step towards purchasing a property.

Here’s why first home buyers are still real estate shopping – and why that might be a very smart decision.

Market Changes

With the events of 2020, it wasn’t unreasonable to predict a potential negative impact on the housing market. But with the Australian government’s interventions and sensible moves by those in the know, the biggest change has just been a slightly slower market as people move cautiously.

But with the drop in interest rates, the introduction of the First Home Loan Deposit scheme, and extra incentives for first home buyers, those who have secure jobs and even just a 5% deposit are finding that purchasing their first home is more achievable than ever.

Favourable Conditions

It’s no coincidence that first home buyers are still real estate shopping, even while others are taking a more cautious approach. There are plenty of factors that are supporting buyers to get into the market for the first time.

Decreased competition from investors. Many investors are holding off on purchasing for now, leaving the market more open for first home buyers.

Limited international/interstate buyers. The pool of buyers has shrunk as those overseas investors who would usually be purchasing entry-level properties are focusing their efforts closer to home.

Low interest rates. With interest rates at a record low, mortgages are even more affordable and desirable for first home buyers.

Stable jobs. Not everyone’s employment has been impacted by the pandemic. Many industries and jobs, particularly in the digital space, have maintained through the current pandemic conditions.

Time to consider. Many people locked inside have reduced their expenses, allowing them to add more to their deposit and focus more on their future goals.

Cost of a mortgage. In many places around Australia, it’s possible to pay less for a mortgage than the weekly cost of rent. While there are other considerations buyers need to account for, the additional government support has made a mortgage even more attractive.

Government incentives. The First Home Buyers Grant goes towards reducing the cost of a property, allowing buyers to offer more. The First Home Loan Deposit Scheme supports a limited number of first home buyers who have a 5% deposit to avoid paying LMI and reduce the overall cost of their mortgage.

Getting in the right position

The key for first home buyers is stability. Buyers with stable jobs, who have at least a 5% deposit, and who have made steps towards getting themselves into the market, are in a fantastic position to make the most of any bargains the market has to offer.

Regardless of the state of the economy, a mortgage is a 30 year commitment, far outlasting any short term economic circumstances. It’s important for any buyers in the current market to consider their short-term financial affairs, but ultimately purchasing a property is a long term decision that will last far beyond the current conditions.

Keeping the Market Moving

While there are complexities associated with the real estate market in current times, there are also diverse groups of people with different circumstances who are able to keep things moving. In the current climate, first home buyers are very well positioned to make their first exciting property purchase.

There may not be as many “bargains” as also predicted by forecasters, as the massive drop in the real estate market expected when the pandemic first hit has failed to eventualise. However, the current market still offers an excellent opportunity for those with stable employment and with clear goals to get into the market and take advantage of the conditions.