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First Home Buyer News Update – January 2025

first home buyer

Navigating the Australian property market as a first home buyer requires staying informed about the latest trends and government initiatives. Here’s a roundup of recent developments that could impact your journey to homeownership:

  1. Rise in ‘Rentvesting’ Among First Home Buyers

An increasing number of first home buyers are adopting the ‘rentvesting’ strategy—purchasing properties as investments while continuing to rent their primary residences. Data indicates that nearly 10,000 first home buyer loans were utilized for investment purposes, marking a 21.4% increase. This trend is particularly prominent in New South Wales, with 9.3% of first home buyer loans used for investments.

Implications:

  • Investment Opportunities: ‘Rentvesting’ allows first-time buyers to enter the property market in more affordable areas, potentially yielding rental income and capital growth.
  • Lifestyle Flexibility: This approach enables buyers to maintain their current living arrangements while building property portfolios.
  1. Victoria Leads in First Home Buyer Loans

Victoria has emerged as a leading destination for first home buyers, recording a 14.3% increase in first home buyer loans. The state also reports the lowest rate of ‘rentvesting,’ with fewer than 1 in 20 first home buyer loans used for investment purposes.

Implications:

  • Homeownership Support: Victoria’s policies and housing market conditions may be more favorable for those seeking owner-occupied properties.
  • Market Stability: The lower prevalence of ‘rentvesting’ suggests a stable environment for traditional homeownership.
  1. Federal Government’s ‘Help to Buy’ Scheme

The Australian Government is set to implement the ‘Help to Buy’ scheme, aiming to assist first home buyers in entering the market sooner. This initiative involves the government co-purchasing up to 40% of a new home or 30% of an existing home, reducing the financial burden on buyers.

Implications:

  • Reduced Financial Barriers: The scheme lowers the amount buyers need to borrow, making homeownership more accessible.
  • Shared Equity Considerations: Participants should understand the terms of co-ownership and future implications, such as selling the property or buying out the government’s share.
  1. Surge in Land Prices

The median price of land in Australia has reached record highs, with a 7.6% increase to $366,510 per lot in the September quarter of 2024. This surge, driven by insufficient land supply, poses challenges for the government’s plan to build 1.2 million homes in the next five years.

Implications:

  • Affordability Challenges: Rising land prices may increase the overall cost of new homes, affecting first home buyers’ purchasing power.
  • Supply Constraints: Limited land availability could slow down new housing developments, impacting market dynamics.
  1. Downsizing Trend Among Working Australians

High property prices and mortgage interest rates have led many working Australians, including young families, to downsize their homes. This trend, traditionally seen among retirees, reflects the financial pressures faced by homeowners.

Implications:

  • Market Adjustments: An increase in downsizing may lead to more availability of larger homes, potentially stabilizing prices in certain segments.
  • Financial Planning: Prospective buyers should assess their long-term needs and financial situations to determine the most suitable housing options.

Conclusion

Staying informed about these developments is crucial for first home buyers planning their path to homeownership. At Opulent Finance, we are dedicated to providing personalized advice and financial solutions tailored to your unique circumstances. Contact us today to explore how we can assist you in achieving your homeownership goals.

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Siraj Ahmed
Siraj Ahmed
2020-11-18
Verified review
Excellent service. Got us a great loan option and also worked with the bank to get the loan approved during the heights of COVID.
Dhruv Satra
Dhruv Satra
2020-11-18
Verified review
Malaka Ekanayake
Malaka Ekanayake
2020-11-10
Verified review
We have had a very pleasant experience working with Opulent Finance. We did not have that much experience with house loans as we were first home buyers but working with Opulent  Finance team specially with Ishara, made that experience stress free one. She helped us secure an incredibly competitive interest rate and offered her guidance so we can take advantage of the future interest rate drop. Thank you Ishara, Dayan and team for your incredible support and we have no hesitation what so ever in recommending Opulent Finance for your financial needs
Uma Gunaratne
Uma Gunaratne
2020-11-04
Verified review
Ishara is highly knowledgeable and if you are a first home buyer and new to the intricacies of all that home loans entail, she will really take you under her wing and impart her knowledge and experience and treat you as one of her own. She is also extremely patient but will also be very truthful and upfront in situations which is honestly what you need. She did a very complicated loan for us, and was so incredible efficient and organised with all the paperwork that was required. Not only that, she helped us secure an incredibly competitive interest rate! Ishara has probably spent hours and hours explaining to me details and giving me really good guidance through this momentous period in life! During the cooling off period and settlement, she was constantly chasing up our loan and honestly took a personal interest in the outcome. Our solicitor was also very happy about working with Ishara as she was following the entire process, was always up to date and very easy to work with. Considering that our entire process happened during the covid-19 lock-down and work from home environment, we have nothing but good things to say about how professional Ishara was as she didn't let a single thing slip. We are so glad that we have both Ishara and Dayan in our corner. We will definitely be using them for all future financing needs. Thank you Ishara, Dayan and team!
Harsha Ill
Harsha Ill
2020-10-11
Verified review
Opulent Finance gave professional advice for my unique home loan requirement. They respond quickly with the proper information. The process was smooth and I felt comfortable to deal with the team. The team is friendly and professional to deal with. Highly recommended for any one looking for finance.
S P
S P
2020-09-22
Verified review
I have been dealing with Ishara at Opulent Finance for over 6 months now and she has been faultless. She has helped me secure a loan pre-approval in no time and assisted me with my property purchases. I could not recommend Ishara highly enough.
Afshin Koohestani
Afshin Koohestani
2020-09-22
Verified review
Good service and offers.
Janaka Kumara
Janaka Kumara
2020-08-22
Verified review
A big shout out to Dayan and his team for the seamless service provided during the refinancing process. Thoroughly professional team that pays attention to every detail and has been extremely transparent throughout the process. A team that always has the best interest of clients in mind and makes all efforts to provide the right advise and outcomes to the clients. Highly recommended!
Rakesh Mistry
Rakesh Mistry
2020-08-19
Verified review
They called me back with solution
Indra Jaya
Indra Jaya
2020-08-12
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