There are good opportunities for first home buyers available in the market

The presence of first home buyers in the residential property market has done somewhat of a back flip over the past couple of years. 

In 2009 we saw a peak in first home buyer activity – according to RPData first home buyers made up 28.5 per cent of all owner occupier finance in May of that year.  This was a period where the effects of the Global Financial Crisis could still be seen in lowered interest rates and government stimulus efforts. 

2010 however was a different story.  With the reigning in of the various government grants, including the First Home Owners Grant Boost, as well as several interest rate increases over the course of the year, the number of first home owners in the market decreased substantially.  A recent report from RPData shows that first home buyer mortgage commitments dropped to their lowest level in six years during 2010. 

There is no doubt that purchasing any property is a big, capital intensive decision to make.  And this decision is amplified many times over when you are considering your first property.  Consumer sentiment, interest rate stability, employment prospects and future income growth are big factors that are inevitably taken into account, and as we saw through 2010 these same factors can affect the confidence of first home buyers, holding them back from making a purchase. 

Keeping these factors in mind, I am hopeful that 2011 will see the return of the first home buyer; I see the market in its current form to hold some excellent purchase opportunities for those who are in a position to buy a property. 

The market itself has been somewhat subdued of late, with median house values across every Australian capital city dropping slightly over the quarter to February 2011.  There is also some consensus that interest rates will stay on hold at 4.75 per cent for the foreseeable future. 

For those first time buyers who are considering taking the plunge, I think that now is a good time to look at your budget and perhaps sit down with professionals such as real estate agents and mortgage providers who can give you realistic advice about your purchase options.  I would definitely advise against pursuing high levels of debt, and I think it is important that all eventualities are planned for, including the possibility of interest rate rises later in 2011. 

For any first home buyers who are looking to sit down and talk to an agent, please feel free to pop into any CENTURY 21 office around the country.  Our real estate experts will be able to take you through the available properties in your area and talk to you about the buying process. 

Posted by Charles Tarbey on 28/03/2011 at 8:41 AM | Categories: First Home Buyers -

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