The number of active first home buyers in Queensland are nearly back to pre-pandemic levels according to new official figures.
The Australian Bureau of Statistics Lending Indicators show that 1834 new first home buyer loans were approved in Queensland in June.
That number was a jump of nearly 30 per cent compared to May when first-timers retreated from the market during the lockdown.
The number of active first-time buyers in Queensland is near the peak of the best recorded over the past two years.
Plus, across the nation, the volume of first home buyer loan commitments is nearly 20 per cent higher than June last year.
Ratio of owner occupier first home buyer loan commitments to total owner occupier housing loan commitments (excluding refinancing) June 2020, number, original terms. Source. ABS Lending Indicators
Good times for new buyers
It’s clear that Queensland first home buyers who have unaffected by the pandemic are now making their move.
Part of the reason is no doubt due to historically low interest rates, which is helping with home loan serviceability.
On top of that, though, there are a variety of grants and concessions available that can help prospective property owners purchase their first properties.
- The Queensland First Home Owners’ Grant is $15,000 towards buying or building a new house, unit, or townhouse (valued at less than $750,000).
- The First Home Vacant Land Concession applies to vacant land valued under $400,000 and can save you up to $7,175 in transfer, or stamp, duty.
- The First Home Concession applies to a home valued under $550,000 and can save you up to $15,925 in stamp duty. The concession may still apply for a home valued over $550,000.
- The Regional Home Building Boost Grant is $5,000 after the purchase or construction of a brand-new house, unit or townhouse valued at less than $750,000 in an eligible regional area.
- The HomeBuilder grant provides eligible individuals and couples with $25,000 towards building or buying a new home or substantially renovating an existing home. Contracts must be signed between 4 June 2020 and 31 December 2020.
As well as tens of thousands of dollars of grants and concessions potentially available for would-be property owners, market conditions are also in their favour.
The number of investors active in the market has reduced significantly during the crisis, which has reduced competition for affordable properties.
Also, with lenders currently being cautious with borrowers who already have substantial portfolios, first home buyers are clean skins, so to speak, which means they are possibly seen as less risky at present.
There are a number of Brisbane suburbs which are currently popular with first homebuyers of houses and units, including Griffin, Fitzgibbon, South Brisbane, Moorooka, and Mount Gravatt East as well as Buderim on the Sunshine Coast.