Interest rates are the lowest they’ve been in a long, long time, which means that technically, buying a house is more affordable than ever.
At the same time, however, first homebuyers are struggling to save a deposit.
When you consider that property buyers need to save close to $100,000 for a 20% deposit on the average home (see below), it’s easy to see why.
When you factor in stamp duty and other buying costs, it can seem like mission impossible.
If you’re planning to buy in an area that is usually popular with first home buyers, it may pay to keep a close eye on this market.
First home buyer demand was sharply impacted when the federal FHB grant was changed to only apply to brand new homes, and when you factor in difficulties in saving a deposit, it may be a while before they return to your particular market in a substantial enough way to drive strong property price growth.