There is a Rise in First Home Buyers in Queensland and Western Australia
Research done by Mortgage Choice shows the noticeable difference in the no. of first home buyers from different states.
As per the new home loan approval data, Queensland and Western Australian first-home buyers accounted for almost 1 in 5 loans in February this year, while New South Wales accounted for less than 1 in every 20 loans written. NSW has the smallest percentage of first-home buyers entering the market.
Mortgage Choice spokesperson Jessica Darnbrough said, “This is largely unsurprising when you consider the state’s capital, Sydney, boasts the country’s highest median dwelling price”.
Also, New South Wales no longer offers grants or stamp duty concessions to those first-home buyers purchasing an established property. But, Queensland’s capital city of Brisbane has a lower median dwelling price in addition to certain stamp duty concessions for those first-home buyers in the market to purchase an established property.
“First-time buyers are spending up to $1.72 million on properties, fuelled by some small lenders allowing borrowers to hand over deposits of 3% or less”, as shown by The Daily Telegraph reported figures from Mortgage Choice.
Mortgage Choice broker, Jonathan Lee, told the Herald Sun that most lenders require 5% genuine savings from first-home buyers and the best way to achieve this is a change in lifestyle.
He further added, “A lot of first-home buyers are on good incomes but their lifestyle is more than what their income is. They need, in some cases, to stop spending as much for a couple months and they’ve got a deposit”.
Darnbrough said, “It’s very important for them to have a good-sized deposit because costs including stamp duty, legal fees, inspections, that all has to come out of their deposit, she advised a good rule of thumb is for borrowers to determine whether they could cope with repayments at a rate of 7%”.
News Source: http://mozo.com.au/home-loans/articles/first-home-buyer-activity-highest-in-queensland-and-western-australia-mortgage-choice/935559624