How COVID-19 is impacting First Home Buyers

It’s hard to believe we have been living through the restrictions of COVID-19 for 4 months, and general consensus is that the effect on the property market has not been as severe as initially expected. 

Thanks to record low interest rates and improved lending conditions, now has proven to be an extremely good time to buy – both for investors and owner-occupiers.

The Commonwealth Government’s HomeBuilder grant has so helped to inject some life back into the residential market and construction industry, with many developers jumping on board to offer further incentives to purchase off-the-plan. 

Good news for First Home Buyers 

It is officially the new 2020-2021 financial year, which means 10,000 more First Home Buyers can make the most of the government’s 5% deposit scheme, through which the Commonwealth Government guarantees the additional 15% of the required deposit – saving first home buyers from pricey mortgage insurance costs.

Access to this 5% deposit scheme for eligible buyers, combined with low interest rates and the HomeBuilder grant make purchasing off-the-plan as intelligent as ever, and many property experts agree.

When discussing current behaviours throughout the COVID-19 restrictions, David Milton – residential property expert at CBRE says he has seen almost no drop in buyer-confidence, “there have been no major changes as a result of COVID-19 in terms of what people are looking for. If anything, people have more time to look for the right property and do their research, meaning they’re more confident in their decision to buy.”

When discussing current interest rates and lending conditions, Milton asserts, “there are enormous positive benefits thanks to the current low interest rates, and all financial forecasts are saying that they’re going to stay this low for the next 2 to 3 years”

“It’s never been cheaper to buy!”

With many states reopening non-essential businesses and strict lockdown measures being limited to only specific suburbs, many people have been able to return to work and restore their finances. 

A recent report by finder.com.au has outlined that around 331,000 young Australian adults have moved back in with their parents as a result of the pandemic, which certainly illustrates the far-reaching effects the virus has had across Australian society. 

Thanks to these months back at home, many Australian First Home Buyers may now be in a better financial position to save for a deposit, particularly if they are able to take advantage of the 5% deposit scheme. 

Click here to browse the many off-the-plan apartments and townhouses currently available across Australia – you may be able to make the most of the government’s $25,000 HomeBuilder grant as well as the First Home Buyer deposit scheme. 

For more market insights and lifestyle articles, click here.