Over the past 18 months, Wythes Real Estate has seen a massive lift in the first home buyer market, particularly in the Noosa Hinterland. This influx of first home buyers has meant there has never been a better time to sell.
Wythes Director and Principal, Sirah Robb, said there was no shortage of buyers looking for properties across the region, providing uncapped opportunities for sellers looking to capitalize on the state of the market.
“We have more buyers than properties we can supply them,” she said.
This increase of first home buyers has also led to a boost in the lending industry.
Josh Carleton from SMS Finance said 20% of the lending industry in the first financial quarter was from first home buyers.
“Last year it peaked at 24% throughout the year and it doesn’t look like it’s going to drop off anytime soon,” Josh stated.
Historically, first home buyers would search for houses within a lower price range, around the $500,000 mark, as they entered the property market. Many first home buyers are now looking for properties at a much higher price, up to $800,000 and also the million-dollar plus range.
“A lot of first home buyers are now travelling from interstate where the property market is quite high. They’re moving up here, starting fresh and seeing the higher price point here is low for them,” Josh said.
First home buyers are also beginning to see the benefits of moving away from the beach and into the hinterland as they focus on long-term investments and building equity instead of their forever homes.
Sirah said people from beachside suburbs were widening their search due to affordability and property size.
“The hinterland has more to offer for the same price,” she stated.
“The best advice I can give is to buy a home and get into the market as soon as you can. The best time to buy was yesterday!”
At Wythes, we understand that buying a property is a huge financial decision that isn’t always easy and funds aren’t always readily available. However, there are different options available for first home buyers to receive the funds they need.
“If you’re looking at an $800,000 property, which many first home buyers are, that can be up to $25,000 worth of stamp duty that the client needs to have in cash without it contributing towards the purchase,” Josh noted.
“However, we have seen an increase in guarantors and gifted funds from family members, which can bridge the gap between what first home buyers have and what they need.”
The Queensland Government also offers a range of grants to help first home buyers purchase a property. The key grants in Queensland are:
- Stamp duty exemption: First home buyers don’t pay stamp duty on purchases up to $500,000. From $500,000-$550,000, stamp duty will be discounted.
- First homeowners grant: $15,000 for first home buyers to put towards brand new properties or land and builds.
- First home loan deposit scheme: The government goes guarantor, covering 20% of the purchase price. This means there is no lender’s mortgage insurance.
Josh said there were many benefits out there for first home buyers, however, they would be specific to each client’s situation and what would benefit them most.
The influx of first home buyers entering the higher-priced property market looking for established properties combined with the financial help from grants, guarantors and gifts mean there has never been a better time for owners to sell.
“First home buyers are pushing out further, looking for established properties and if there’s any land they’re straight onto it. There are great, affordable properties in the hinterland areas that first home buyers will snap up,” Sirah said.
The influx of first home buyers provides competition for sellers to receive a great price for their hinterland property and move onto the next stage of their lives.
“In the current market, people are now able to use the equity from the sale of their property to buy their forever home, downsize or reduce debt,” Josh said.
If you’re a first home buyer looking to get pre-approved for your purchase, make sure you contact Josh and the team at SMS Finance.
If you’re an owner, who has a property that sounds like something first homeowners will be interested in. Contact the team at Wythes Real Estate today!