Investors and first time buyers facing off

Jennifer DukeDecember 7, 2020

With investors out in force across the country snapping up entry-level properties, it’s no surprise that first home buyers are feeling the heat with new Australian Bureau of Statistics (ABS) data showing first time buyer levels dipping.

First home buyer levels are representing just 13.7% of new mortgages in August 2013, compared to 14.7% in July 2013, ABS statistics show.

This comes as investor activity is spiking, explained executive chairman and CEO of Raine & Horne, Angus Raine.

“We’ve probably never before seen the investor market so ascendant, with historic low interest rates, favourable rules for self-managed super funds and a shortage of stock contributing to excellent investor conditions,” said Raine.

“To be fair, buying a first home has always had it challenges,” he said, urging new buyers to be flexible when entering into the market.

“Typically this means looking for more affordable homes in suburbs or towns that may not have originally been on your shortlist, while the often juicy government subsidies involved in buying or building a new property are also worth some consideration,” he said.

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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