NSW first time buyers prefer owner occupying rather than investment

The data showed that the majority of NSW first-home buyers said they would consider paying between $600,000 to $700,000 for a home
NSW first time buyers prefer owner occupying rather than investment
Jonathan ChancellorNovember 21, 2021
First-time buyers in NSW are overwhelmingly looking to buy a home rather than an investment property, according to exclusive research by InfoTrack. The latest InfoTrack Property Market Update revealed 84 per cent of first-home buyers in NSW purchased as owner occupiers. Some 47 per cent sought a house and 37 percent went for a strata property. Another 15 per cent were buying vacant land with the plan of becoming an owner occupier. The data also showed that the majority of first-home buyers said they would consider paying an average of $600,000 to $700,000 for a home – the top of the threshold to avoid expensive stamp duty fees in NSW. “This strategy tells me these buyers are savvy and want to make the most of every exemption available to them. While it does limit property choices, it ultimately drives first-home buyer behaviour and lightens the load at settlement time when the costs come together,” according to InfoTrack CEO John Ahern. Ahern noted throughout 2021 that first-home buyer activity has been in decline after peaking in March. Mr Ahern said despite this decrease, those getting into the market know just what they want. “Buying a first home in a location based on affordability seems to be step one towards owning a property in a more desirable location. "Given the recent hike in property prices, securing a first home can really set buyers up with healthy capital gains in a relatively short timeframe. "It’s also a sensible move that offers them an opportunity to think about what their second property purchase might look like,” he said. Over the past 12 months, a majority of first-home buyers in NSW (55 per cent) made their property purchase alone, or only listed one name on the title. “What I see when I look at this data is that property ownership is an attractive investment strategy regardless of whether you purchase independently, or jointly with others. It also indicates that there are more individuals with higher disposable incomes who can afford to buy their first home self-sufficiently,” Mr Ahern said.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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