With the government’s first home buyers grant scheme, if you are buying a brand new home, now is a great time! The State and Federal Government started offering first home buyers grants assistance to buy their dream home. As the property market continues to grow incentives are being granted for homes that have not been lived in – Use the State Government First Home Buyers Incentives.
First Home Buyers Create Market Demand
Demand from first home buyers is important, which is why the government has created a scheme to get them to purchase new properties. To stimulate this chain reaction, governments often issue incentives to help boost first time home buyer demand during weaker market periods. This provides the ideal opportunity for the first home buyer to obtain a grant, locking in a competitive interest rate on their first home loan.
Progressive changes have occurred over the last three years, as some states and territories favoured the purchasing of new homes, rather than existing homes. This should create a long-term impact that will shift demand and add to the supply. To take advantage of the market conditions and get in to a new home try our great rate home loan options!
There is a short-term impact too, as the first home buyers incentive for buying established properties is removed:
1. The demand for first homes is pushed forward as buyers wish to take advantage of incentives while the grants are available. This causes a ripple effect in the established market.
2. The next round of first time home buyers has to accumulate larger deposits, as home prices rise. Due to a lack of financial aid, they need to be able to obtain a loan from a broker.
Since the September 2013 removal of the $7,000 First Home Buyers Grant, loans to first time buyers has declined in the Australian Capital Territory (ACT).
Time to Buy for First Home Buyers
As the economy strengthens and the Reserve Bank considers increasing interest rates, the timing could be right to get your first home loan.
In addition to first home buyer grants, there are also broader concessions and other incentives available to first home buyers.
To speak to our friendly home loans team call us on 1300 137 778 or Apply Now!