It certainly hasn’t turned out to be the year many people expected, but for others there have been plenty of opportunities in the form of purchasing a new home, either pre-built or off the plan.
So, what is driving people to purchase during one of the worst pandemics and economic downturns that we have seen in a long time?
COVID-19 has put incredible financial and economic stress on many Aussie individuals and families.
For those fortunate enough to be in a position to be considering buying a property, there are several reasons why now may be the perfect opportunity to make your move. In this article, we'll cover 3 of the key reasons why:
Low Interest Rates
Low interest rates are the starting driving force; it’s certainly been a while since we’ve seen interest rates sitting in the 2 – 3% range, particularly for so long, and it is helping people get into the market and make larger repayments on their new homes, getting themselves ahead.
However, it can be harder to secure a loan, particularly if you are sitting on the fine line of whether you have enough of a deposit saved and how secure your job is.
Banks are certainly tightening their lending policies and for people in some industries, it is much harder to secure a home loan.
There are no restrictions to buying a new home, other than perhaps restrictions placed on inspections and auctions by relevant Government authorities, and the methods around buying certainly haven’t changed.
However there are a few things to be doing now that you may not have considered even 12 months ago:
The announcement of Government grants to help people purchase a new home have certainly seen an influx in enquiries from potential purchasers.
Most states have also put into place grants suited towards those building a new home to complement the Federal Government grants.
The HomeBuilder grant provides eligible owner-occupiers a $25,000 grant to build a new home or to substantially renovate an existing home. In NSW, some of the eligibility criteria includes:
You can find out more about the HomeBuilder grant applications in NSW through Revenue NSW.
The First Home Buyer grant is available to first home buyers in NSW, with two sections – First Home Owner Grant (New Home) and First Home Buyers Assistance Scheme.
The First Home Owner Grant offers $10,000 towards the purchase price of your new home. There are a few requirements that need to be met including:
The First Home Buyers Assistance Scheme provides a full or partial exemption on transfer duty, and to apply you must be buying your first home in Australia and it needs to be valued at no more than $800,000.
Less Buyers in the Market
Another factor making it easier for buyers at the moment is that there are less buyers in the market. While the Sydney market is usually quite competitive, with less buyers out there, it can be easier to purchase your new home without the rush there normally is.
Real estate agents have more time to show you available properties and developments, and you’ll generally have a bigger selection to choose from.
The Market Might Be Right But I still Don't Feel Confident Buying Property
It’s one thing to utilise the current grants and economic conditions to purchase your new home if you are able to do so, but you also need to feel confident in actually purchasing your new home, whether pre-built or off-the-plan.
If you are a first home buyer, it can be hard to know what to be on the look out for and what to consider.
If that's the case check out our article on the topic is a great place to start.