Glimmer of Hope for First-Home Buyers in Sydney in 2022

Everyone is a first-home buyer once in their lifetime. Your first buying can be a whirlwind experience. It would help if you were cautious and diligent in preventing making any expensive mistakes. No matter how many investments you have made, purchasing property is a considerably large investment that requires great attention. 

As a first home buyer, you might be looking for different property investment opportunities or seeking home buying assistance schemes. You need a good understanding of the market, calculate your budget, decide the appropriate location for yourself, and much more.

Purchasing a dwelling is the most significant decision of your life. Owning a home is a dream for many. Before going into the investment part, you also need to understand the current market trends and prices. When property rates are falling, many plan to initiate their property investment. This is a time when most buyers see a glim of hope. 

In this article, we will tell you about Australia’s current market trends, which will help you land a fruitful investment outcome. So let’s get started. 

Sydney shows great hope for first-home buyers in 2022

Most first-home buyers might have had a new year resolution to enter the housing market. However, they may want to reconsider, as analysts anticipate another difficult year for aspiring homeowners. However, there are some encouraging signals: more properties are expected to be in the market. Through this, buyers will get more options, and perhaps there will be less competition. 

If buying a home for the first time, you will dejectedly face 22.2% higher prices compared to a year ago, according to CoreLogic Data. In addition, lending is now difficult as banks restrict how they issue housing loans in response to measures made by the central bank. 

Researchers say, next year, the property prices will increase than this year, so many people will face difficulty investing. 

In 2021, the share of new home buyers declined for nine consecutive months. As per the Australia Bureau of Statistics, it was the time when lending by investors was at record levels. The main window for first-time buyers will open when price gains slow down. This is likely to occur after July.

Grants by the government for first-home buyers

As a first-time home buyer, you can benefit from the government’s grants. This makes investment easy for you. Industry professionals play an integral part here. If you decide to invest in a property, you must understand how government supports you. There are mainly five grants:

1. Australian government homebuilder 

· Grant of $15,000

· Packages up to $950,000 for new property and land.

· Grant for renovation if your property is between $150,000-$950,000. The property you live in must not exceed $1,500,000. 

2. NSW first home buyers stamp duty discounts- new homes

· No stamp duty up to $650,000. 

· Discounted stamp duty that ranges from $650,000-$800,000. 

3. NSW first homeowners grant

• Grant of $10,000
• New property of $600,00 or less.
• House and land packages that hold a value of less than $750,000.

4. Australian government’s first home loan deposit scheme

• You just need to pay a 2-5% mortgage.
• Avoid paying LMI, which is Lender’s Mortgage Insurance 

5.  Australian government’s first home super saver scheme

You can make voluntary contributions of 2-5% tax up to $50,000 and non-concessional contributions after tax. This helps you to save for your first home. 

What do officials say?

According to senior economist Jonathan McMenamin, various factors are slowing down the sales rate in the property market. First-time property buyers are now waiting for prices matching their income growth, which increases 10% yearly. 

According to different officials, if out of 10, 6 people invest in the property, it is not difficult to chase the other 4. But, unfortunately, their borrowing ability has also been harmed by the more restrictive lending environment, and as a result, buyers will just lose out on a property in late 2022.

Conclusion

If you are buying a house for the first time, you must seek proper guidance. This helps you to stay updated with property investment opportunities. 
Quatre Acre, make sure our clients get the best guidance. We make them aware of the best time and areas to invest in. With 17+ years of experience, we provide you with the best buying assistance. Contact Quarter Acre for further information and advice.