Way back in January 2009 we wrote about our experience in Australian property market from a buyer’s prespective.Seems when we are writing this article now things haven’t changed much apart from the medium price of house. Almost 9 years ago the medium Sydney property price was $500k as compared to 1 million today. While from a property owner point of view this is good news. The double digit growth of their property after 9 years. For first home buyers trying to enter the property market, it is still difficult as it was in the past. Irrespective of government grants and large amount of housing supply the picture isn’t that all rosy. The banks are tightening their lending practises and there are talks that Interest rate might increase in 2018.All these aren’t helping first home buyers. It’s just deteriorating the affordability further and further. The Australian dream of owning a property is seemingly diminishing to speak.
All said than done paying mortgage is still far better to pay rent. While the interest rate are low (which you can fix it for few years) there is not much difference between the mortgage payment vs rent for a decent 3 bedroom house in a good family friendly locality in Sydney. So the questions what’s stopping the first home buys plunging into the property market? Is there a perfect time to buy your first home or its all being ready?
Well through our experience working with new comers and prospective first home buyers we have noticed that the initial road block is obviously the initial down payment and limited budget. No to sat that their priorities in initial days if settlement in Australia are different. However which due planning and research getting into property should be as difficult as it is perceived. Newcomers need to look ahead 3 to 5 years now and start planning of how would their family priorities might change and work on it now find a suitable location.
Our experience says that initial 3 years of settlement newcomers are busy renting in areas which are popular and end up paying heavy rents for example Strathfield (a 2 bedder unit will cost you up to $400 a week) in 2016, while unaware to realise that a suburb Blacktown which isn’t far from Strathfield they would have found a same property paying the same $400 a week in mortgage in 2016.( a 2 bedder unit cost at black town $350k).Now in 2018 the same unit is now for $450k which means you would have $100k of equity. Not everyone would agree with this scenario but the point we want to raise is that getting in to property market does have merits, while there might not be a right or wrong time to enter it.If you can make it a point to enter it any ways