Is now the time to buy your first home in Surfers Paradise?
At some time or another, you're going to be faced with the prospect of buying your first home. Ownership of real estate is one of the great Australian dreams, even if the landscape has shifted from a house in the suburbs to a more unit-oriented market.
No matter your property preference, Surfers Paradise real estate can offer you what you need. High rise apartments go hand in hand with larger houses on the water, offering you a fantastic series of opportunities to get your foot on the bottom rung of the real estate ladder.
There are often concerns about how affordable property is in the current market, but we think there are several reasons to consider buying in the near future. Here are a few of them.
A fantastic interest rate environment
The Reserve Bank of Australia has cut the official cash rate twice so far this year, and each time has seen interest rates follow it on the way down. In fact, some lenders have noted that the rates they have been offering on mortgages are their lowest in up to 50 years.
Even as prices rise, the financial details of signing onto a home loan become more and more desirable. Lower interest rates mean you have to pay back less, and could potentially lead you to have more borrowing power – letting you hit those higher price brackets. Of course, it's important to remember that nothing lasts forever – interest rates will eventually rise again, which is something you should be factoring into your plans!
Stability in first home owner grants
Every state and territory has some variation on the first home owner grant, which enables people to access a set amount of funding when they purchase a newly constructed dwelling or build one themselves. In Queensland, this grant is up to $15,000 – a significant stepping stone to ownership.
And ahead of the Queensland budget, treasurer Curtis Pitt has announced that this grant will remain untouched – something the state branch of the Property Council of Australia is very pleased with.
"The continuation of the $15,000 grant in the upcoming state budget ensures the door remains open for first homebuyers purchasing new homes in Queensland, and provides a boost in confidence for the residential sector," noted Chris Mountford, state executive director for the council.
If you have been looking for a leg-up to get into Main Beach real estate, this stability could be just the confidence booster you need!
The crowd is moving in the same direction
Where there's smoke, there's fire – and it looks like Queensland lending activity is heating up! The Housing Industry Association (HIA) commented on the latest Australian Bureau of Statistics figures for home lending recently, which look good for the Sunshine State.
Over the three months to April, the seasonally adjusted estimate of new mortgages going to home buyers rose by 3.4 per cent across Queensland. This suggests more and more people are ready to make a purchase, be they investors, upgraders or first home buyers.
"In April 2015 there was a 4.3 per cent increase in the number of owner occupier loans for construction, while the equivalent number of loans for the purchase of a new property rose by 1.6 per cent," noted the HIA's chief economist, Dr Harley Dale.
This suggests a wealth of people who could be taking on the aforementioned first home owner grant. If you'd like to be among them, 2015 could be the time to buy Surfers Paradise property! Make sure to get in touch with us here at Ray White Surfers Paradise for more information on real estate in the area that lines up with your goals.