Michael Soltys and Lauren Bennetts, pictured with son Carter and Michael’s parents Kaye and Peter Soltys, are planning to buy their first home this year. Picture: Jason Edwards Source: News Limited
A NEW wave of optimism has hit the housing market — Aussies have singled 2018 out as the year they’ll finally chase down their dreams of property ownership.
A national poll revealed two in five people believed it was a good time to purchase a home.
And nearly a third of Aussies said they planned to pull the trigger on a purchase this year, whether upsizing, investing, moving to a new area or buying their first home.
Millennials were particularly optimistic — almost half those born between 1983 and 2000 said they planned to purchase a home this year, according to the YouGov Galaxy Poll commissioned by Realestate.com.au.
The research surveyed more than 1000 people across the country under age, gender and regional quotas reflecting ABS demographics estimates.
The survey also included a mix of renters, adult children living with their parents, mortgagees and those who owned their properties outright.
Realestate.com.au head of home loans Andrew Russell said the increased optimism was the result of a shift to more stable price movements amid a low interest rate environment.
Millennials Matt Brandon and Alice Tidmarsh bought their first property in Brisbane’s Cannon Hill. Picture: AAP/John Gass Source: News Corp Australia
“With a lot of the recent commentary talking about a slowdown, some buyers may be looking at the market and thinking it will be a good time to buy,” Mr Russell said.
IN WITH A SHOT
Activity on Realestate.com.au’s new home loan platforms showed confidence was at a high among one group in particular, Mr Russell said.
“Excitement is coming from all categories of buyers, but especially first homebuyers … It shows that the dream of home ownership has continued to grow and first homebuyers are more confident they can achieve that dream than perhaps they were in years past,” he said.
First homebuyers across the country confirmed that their path to home ownership was smoother than expected.
Alex Laguzza and partner Mariam Ghazi have just bought their first home in Ryde. Picture: Darren Leigh Roberts Source: News Corp Australia
Brisbane couple Matt Brandon, 31, and Alice Tidmarsh, 27, just bought their first home and said they were happy their mortgage repayments would cost only $25 more each week than their current rent.
“With interest rates low and the first-home-owners grant still available, I think it’s a great time to get in to the market,” Mr Brandon said.
Sydneysider Alexander Laguzza, 22, recently bought his first home in CWG Development project Stellar in Ryde and said he felt he wouldn’t have been as lucky even a few months ago. “Buying now I get stamp duty off and the First Home Owners Grant, so I only had to put up $5000. That’s what really sold me,” he said.
In Melbourne, house hunters Michael Soltys and Lauren Bennetts, both 31, said they were optimistic about the market and expected to be moving into their first home by the end of the year. This was despite missing out on previous sales that went above their budget.
Canstar financial services expert Steve Mickenbecker said some homebuyers may have spotted a rare gap in the market.
“Rates are at rock bottom, are likely to stay low for some time and prices are down in some areas so you’ve got a lot of people saying ‘now’s our chance’,” Mr Mickenbecker said.
“Investor participation is down too and there are less foreign buyers in the market so some (house hunters) may feel there’s more space for them.”
Those with property ambitions said lofty prices would likely be their biggest obstacle.
More than half of respondents (53 per cent) said high prices would be the factor most likely to derail their property goals for the year, followed by not being able to borrow as much as they would like (30 per cent).
Experts said worries about mortgages can often be overcome by proper research. REA’s home loan experience lets people apply for fast conditional approval for a loan on properties they are examining via the website; and tells them how comfortable or stretched they will be by comparing payments to their lifestyle costs.
The company is also expanding its broker arm, which offers customers bespoke service.
— With additional reporting by Scott Carbines and Elizabeth Tilley
POSTED: February 17, 2018
AUTHOR: Aidan Devine
@Jurds Real Estate – Cessnock and Hunter Valley Wine Country Property Experts – the place to buy, sell and lease property in Cessnock and the Hunter Region.