Green shoots for house hunters
New taxes are pushing some baby boomer investors out of the market creating options and lowering prices for first-time buyers.
PROMINENT Melbourne real estate agent Dion Besser, of Besser + Co, says there are some other positive signals for first home buyers in the state.
“In Victoria, new taxes are pushing some baby boomer investors out of the market, especially in the apartment sector. That’s creating more options and lowering prices for first-time buyers, with plenty of entry-level properties on offer right now,” he says.
“With apartment prices levelling out and possible rate cuts on the horizon, now might be a great time to get into the market. If you’ve got everything lined up, you’ll be ready to move quickly when the right place comes along”.
On this front, he urges first home buyers to get their “support crew” lined up as a priority. For newbies to property, he urges a conveyancer for “the legal stuff”, a building inspector to check the property, a mortgage broker for finance and a financial advisor “to help you plan your budget, pay down debt, and build stability”.
Still, Kaleido Loan’s He concedes the battle for many first home buyers remains uphill, making the “bank of mum and dad” a popular option for those with access.
“The bank of mum of dad can do two things. Firstly, parents can use their property to guarantee to support their kids, but this doesn’t resolve the borrowing capacity issue mentioned earlier,” He says.
“Secondly, parents can provide cash to increase the kid’s deposit so they don’t have to borrow as much.”
