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The property downturn: a golden opportunity for first home buyers


26 March 2019

With the property market declining and severe lending restrictions resulting in a restricted capacity to borrow. As a result, I’m seeing more potential first home buyers worried about their prospects for home ownership. 

Recently, I met with a couple who have been in Australia for about seven years and wanted to buy their first home – a two-bed apartment at a price point of around $600,000. Like many others, they had concerns about whether now is the right time to buy and if they would be able to secure a loan given banks tough stance on loan assessments. 

My advice to them, and to others thinking of entering the property market- now is an opportune time to buy for several reasons:

Slowed project approvals mean more affordable options

Prices have come down substantially since last year, and approvals of off-plans projects have declined sharply – which will lead to a shortage of supply of apartments in the near future. With less buyers, reasonably less supply and a dramatically slower market, now is the ideal time to buy before the shortage starts to push prices back up again.

In the long run, prices will increase

Common sense plus a review of market history tells us that properties will increase in price over the long term. Our population is growing rapidly and about 100,000 people move to Sydney from overseas every year, which means greater demand for, and thus value of, properties. And, with many younger people choosing to buy now given the downturn, prices will begin to increase again in line with limited supply over the next 6 to 12 months.

Buying off-the-plan suits buyers with a limited budget

For many first home buyers, especially those like the couple I worked with who are happy to buy an apartment, buying off-the-plan is one of the most financially feasible options. This is because you typically only have to pay a 10% deposit until settlement, which gives you the chance to enter the property market while you continue to save.

Entering the property market now allows you to grow your portfolio sooner

The reality is that your first property most likely won’t be your dream home. However, buying below $650,000 gives you the opportunity to enter the property market sooner and take advantage of the Government’s waived stamp duty initiative, with an additional $10,000 grant if the property is below $600,000.

Buying a property at a lower value gives you the leverage to start growing your portfolio so you can buy at a higher value further down the track. For a lot of savvy owners, their first property eventually becomes an investment bringing in rental income once they have the means to buy a bigger and better home to occupy.

So, what was the outcome for the couple wanting a 2-bedder at around $600,000? They had been considering a property valued at $640,000, but with my recommendation, they ended up buying an apartment at $560,000. This gave them access to the $10,000 first home buyer grant – and they’re thrilled to have been able to buy at an affordable price while still getting what they wanted. 

I thrive on these sorts of success stories. That’s why any time I get those common questions from first home buyers, I always listen to their concerns and work with them to identify their needs, so we can achieve the best outcome together.

Get in contact to discuss opportunities suited to you. 

Steve Liew 

Senior Sales Executive
0402 478 233


Steve Liew 

Senior Sales Executive
0402 478 233