Novices who have less knowledge about what housing market is can successfully make it if right ideas are embraced. Obsolete ideas should be avoided so it’s important to know the updates.
It’s a big issue and there is a lot of noise around young people being priced out of the market.
Ideas being bandied about include using superannuation to fund a deposit.
So what has changed in recent generations?
According to Mortgage Choice’s recent new home loan approval data, Queensland and West Australian first home buyers accounted for almost one in five loans written throughout February.
By comparison, in New South Wales, first home buyers accounted for less than one in every 20 loans.
Mortgage Choice spokesperson Jessica Darnbrough said there were many reasons why first home buyer numbers differed from state to state.
New South Wales has the smallest percentage of first home buyers entering the market.
This is largely unsurprising when you consider that the state’s capital, Sydney, boasts the country’s highest median dwelling price ($680,000).
On the flipside, Ms Darnbrough said Queensland’s capital city of Brisbane boasted a much lower median dwelling price ($452,000).
There are also certain stamp duty concessions for those first home buyers looking to purchase an established property.
“Our research shows more than 70% of first home buyers who purchased their property within the past two years bought an established dwelling,” she said.
“As such, it is isn’t surprising to see first home buyer participation stronger in the states that not only offer concessions or grants to those looking to purchase an established dwelling, but those states boasting a lower median dwelling price.”
Mooloolaba-based real estate director Amber Werchon’s advice to first home buyers is to research the area in order to act when the right property comes to the market.
“To save a deposit put away at least 10% of your income into savings before you spend anything,” she said.
Make sure that you buy within your means and factor in future interest rate rises so that you are never in a position where you are under financial pressure/forced to sell.
“Save, save, save and pay off as much as you can as fast as you can.”
“Then you can look at an investment property sooner rather than later.”
SOME TIPS FOR UNDER 30s:
Buy a property as soon as you can. If you can’t afford to buy where you want to live, get a foot in the door and rent it out.
Don’t overcommit – buy a property, but within your means, so you can still have the lifestyle you want.
The greatest tip came from a colleague. Never sell your first home. Use it as equity to get your next one.
My tip is you cannot afford to travel unless you have an investment of some sort to come back to.
SOURCE: SUNSHINE COAST DAILY
Such tips can help you make it right on your first experience in this market. With these, you will less likely fail.