First home buyers flood the market

GENEROUS government grants have been the catalyst for the recent growth in the number of first home buyers coming onto the market.

According to the Australian Bureau of Statistics Lending Indicators Report, in March 2021 owner occupier first home buyer loan commitments remained at a historically elevated level and was 58.3 per cent higher than March 2020. From opportunities like the First Home Loan Deposit Scheme to the First Home Owner Grant, those looking to get into the property market have never been so incentivised.

In north western Sydney, Ray White Quakers Hill selling principal Josh Tesolin (pictured above left) has seen an influx of first home buyers in the market over the past six months. He has a few tips for first home buyers who may be confused by the mountain of information out there for those entering the property market.

“At the moment approvals are taking longer. If you find your dream home, you’ll want to celebrate—not suffer anxiety hoping for your loan is given the thumbs up. And, most pre-approvals expire within three to six months, so you need to get to it,” Mr Tesolin said.

“Once you find an area you like, research the latest median prices, market data and local demographics. Know what is planned for the area — public transport upgrades, planned high rises or new schools.

“Make sure the property meets your needs, but be realistic. Can you fit your family in the bedrooms? How far are you from public transport? Is the freeway too close? Is there a beach down the road? What are the growth prospects? If it’s your first house, it doesn’t have to be the ‘dream home’. Start small, buy what you can afford and go from there.”

First home buyers like Veronica Rodriguez and her partner Jarrad Richardson (pictured above right) who bought through Mr Tesolin were both living with their parents when they decided to buy their first home. Between beginning their search and finding their dream home they had roughly about five months of searching and crossing their fingers.

The pair were armed with information about the market and their price guide so they made decisions on the spot after an open home whether it was shortlisted or not, until they found the one they knew was theirs.“The best thing for a first home buyer to do is to research your broker and choose someone who is willing to help you through each step of the process. Someone who is willing to take the time to break down the details for you,” Ms Rodriguez said.“Research what kind of property you can get for the price range you’re thinking of to manage your expectations when going into open homes or searching through the portals.“Don’t be scared to jump in the market early. Meaning, don’t be afraid to go and check out open homes even when you’re not ready, just so you get your expectations in order.”Mr Richardson advised first home buyers need to be prepared with some genuine savings, as you’ll most likely need to prove at least three months worth of genuine savings.

“Once you have a bit of money saved up, talk to your broker and work on timelines and possibilities," he said."Even if you don’t think you have enough, you don’t have to pay for some brokers and they can provide advice based on your financial position. We turned around what we thought wasn’t possible and achieved it within weeks!”