First home buyers purchasing in Sydney's north
First home buyers are causing a spike in sales in Sydney’s Upper North Shore, according to a real estate agency in the area.
Principal of Mcconnell Bourn, Matthew Bourn, said that their agency has recently recorded 11 unit sales valued in excess of $5.2 million, with an average of 16 days on the market compared to 45 earlier in the year.
Bourn attributes this to first home buyers.
“Our recent unit sales show the buyer profile is predominately from a younger demographic, with 60% of our purchasers being first home buyers,” said Bourn.
“These buyers are looking to get out of the renting cycle by taking advantage of low interest rates which have made it as affordable to meet repayments on a home loan as it is to pay rent,” he said.
The majority of recent sales for the agency have been selling at above list price.“Our last 11 sales of two-bedroom units have sold at around 4% above property market valuation,” he said.
“Interestingly, we are also noticing investors making a return to the property market as consumer confidence rises. Some locals are using their superfunds to purchase investment property in the area,” he said.
He points to the following recent sales evidence (September 2013 sales):
2/174 Pacific Highway, Roseville
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Apartment: Two-bedroom, one-bathroom
Features: Ground floor, built in wardrobe, lock-up garage, north facing balcony, laundry
Strata fees: $913.35 per quarter
Council rates: $303.00 per quarter
Water rates: $156.55 per quarter
Purchased one week after listing for $535,000
2/642 Pacific Highway, Killara
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Apartment: Two-bedroom, one-bathroom
Features: Boutique block of ten units, high ceilings, undercover car space
Levies: $1,532.00 per quarter
Council: $285.00 per quarter
Water: $156.55 per quarter
Purchased for $565,000 after first open home