As the vaccine is rolled out and Australia recovers from the recession, 2021 has started out as the year of the home buyer. Have you re-assessed your position?
Ironically the Covid-19 lock down has increased savings levels across Australia. That has for many potential home buyers increased their available deposit.
Household weekly spending changes such as more eating at home and lower entertainment expenses have improved living expense habits. This has driven increased savings, but importantly has also allowed more cash flow to be available for home loan repayments, which increases the amount banks will lend to you.
Review your budget. How many of your spending changes will or can become permanent if that allows you to buy your dream home?
Record low interest rates below 2% then amplify these changes, assisting affordability levels both from an individual budgeting perspective and from the bank servicing perspective.
Multiple government support options are also potentially available to benefit home buyers. There is the homebuilder grant (currently $15,000 for a limited time) and up to 50% stamp duty discounts for Victorian home buyers up to $1 million purchase price. For first home buyers there are other stamp duty discounts available, and the Federal First Home Loan Deposit Scheme.
Adding to the opportunity, the adoption of work from home employment policies have allowed many to look at a home purchase further afield, where prices are more affordable. Increased demand in regional areas is resulting in increasing prices, but bargains are still to be found.
Did you remain employed through the pandemic? Are you ready to move?
We have many first home buyers and home upgrade clients who were not able to buy 6 months ago, but have now positioned themselves to buy, and are active in this market.
Affordability has improved, maybe more than you realise.
For many there is a current window of opportunity which may not remain open for long. Don’t miss out. Call us now for review, 2021 may be your opportunity!