First home buyers returning the market: What you need to know blog post image

First home buyers returning the market: What you need to know

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Home buyers have increased by 15% in June 2017 and home loan demand is up for the second month in a row. The Australian Bureau of Statistics’ Housing Finance Report shows that approvals for owner-occupied increased by 0.5% in June with the market expecting a 1.5% gain.

This indicates that first home buyers may be returning to the housing market. First home buyers have risen to 15% of total owner-occupied housing finance commitments, which is at its highest level since February 2014. First home buyer commitments also rose by 28.9% in May, followed by a 1.6% bump in June. That’s the highest since October 2014.

Records show that the total value of investment loans written increased by 1.6% to $12.5 billion in seasonally adjusted terms, despite the change lenders have made to their investment policy and pricing.

Australia’s lenders have continued to change their pricing and policy on investment products, which makes it more difficult for aspiring investors to qualify for a loan. However, there are still some lenders who are willing to write investment loans.

There are opportunities for investors to qualify for lending, but this activity could disappoint regulators, who aim for slowing investor activity.

Overall, home loan demand is expected to remain strong and based on the data, the market remains buoyant. Interest rates will likely remain low.

Construction related loan approvals continue to surge, with increases in eight states and territories in June 2017.

Finance for construction loans jumped 3.6% while finance for the purchase of new homes increased by 3.5%, both in seasonally adjusted terms. This could be due to the surge in high rise apartment completions.

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If you want to purchase your first home, there are some things you need to know.

If you are purchasing a new dwelling valued up to $750,000, you may be eligible for a First Home Owners Grant of up to $20,000.

Depending on the location of the property, you might be eligible for land transfer duty or stamp duty concessions. This may include duty exemption or concession, off-the-plan concession, pensioner concession, principal place of residence concession, first-home owner with family exemption or concession and young farmer’s exemption or concession.

What can you do?

If you would like to know more about property investment and first home buying, you can click here to learn more about Chan & Naylor services. Leave your details here and we will schedule your free consultation. We’ll contact you to explain more.

Whether you are a beginner or seasoned investor or a business owner, we can give you guidance to maximise your financial potential. We can provide an integrated and tailored solution for your superannuation, taxation, property investment, asset protection, estate planning and more.

Click here to schedule a chat or call us on 1300 250 122

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Chan & Naylor Group has national offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales.


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