When you make the decision to buy your very first property, it's rare that you take the step at a time when the market is working completely in your favour. However, if you do decide to buy right now, you could be taking advantage of the best conditions for buyers that have been seen in three years!
Two factors are sticking out as being extremely helpful to first-time buyers, and the fact that the lowest house price growth over the past 36 months is in the market right now is really just the tip of the iceberg.
1) Slow growth = great buying
The slowest growth in the past three years is the result of market conditions around the country.
In a June 8 media release from the Real Estate Institute of Australia (REIA), the slowest growth in the past three years is noted as being the result of market conditions around the country – including investor activity.
"Over the [last] quarter, the weighted average capital city median house price decreased by 1.3 per cent while the figure for other dwellings went down by 1.1 per cent," stated REIA President Neville Sanders.
"The quarterly decline in prices can, in part at least, be attributed to the influence of the macro-prudential measures on the housing market introduced to curb investor activity."
While there is a decline in the national median house price, getting into your very first home might not be as difficult as previously expected. There will be other buyers out there, however, so acting quickly to get your mortgage options sorted is recommended.
2) Is the cash rate going to help?
The latest decision by the Reserve Bank of Australia to keep the official cash rate at the record-low 1.75 per cent is going to help anyone looking at taking out a first home loan. You might be wondering "how much will my loan repayments be?"
Well, with a lower cash rate, lenders don't have to pay as much to borrow money to provide loans and mortgages – this could result in lower mortgage repayments because the comparison rate will be smaller.
Oct 15, 2015 at 2:10am PDT
With easier access to funds, buying your very first home could be even more straightforward. You might not be paying off the loan for quite as long, or you'll be able to afford a property you hadn't even considered before as it was out of your price range. While the cash rate remains this low, these are both possibilities!
Get in touch with Mortgageport today to discuss the best home loan options for you.