First Home Buyers In NSW Eyeing Investor’s Tag
One of the most reliable (and reputed) property comparison websites, finder.com.au, feels that the first home buyers (FHBs) in Western Australia will set the tone of property investment for their interstate rivals. As many as 90% of Western Australia’s first home buyers have set property purchase as their New Year resolution. They are a fiercely resolved lot and their desire to buy “interstate” may make life difficult for their peers in other states.
WA to set the tone for FHBs in other states
Already, this segment of home buyers feels financially strangled and WA’s interstate push might force FHBs from other states to pay higher deposits; something that they are clearly not comfortable with.
Property market is bent towards investors
The property market is heavily inclined in favour of property investors and refinancers. The second best part of the pie is gobbled by owner-occupiers. The first home buyers generally get a raw deal and they only merit attention because of their large numbers.
This being said, they are also the only segment of buyers who directly benefit from Government Grants. Till recently, the grants were available to each stratum of purchase but presently, it is only handed out for purchasing a new home (not an established or an existing one).
NSW’s rare scenario
New South Wales presents a rare case. As many as 60% of FHBs are willing to become property investors as against a majority of FHBs in other states who are happy with purchasing a principal place of residence.
Sydney’s performance has to do with it
Perhaps this fast catching trend is a testimony to the way Sydney’s performance has enticed all hierarchies of property investors. The trend is also partly attributable to the flurry of overseas property investment in New South Wales.
FHBs in NSW seeking high capital gains
First Home buyers in NSW are showing sharpest leanings towards living with their parents. In fact, they do not mind staying with them even into their 30s. The idea clearly is to save deposit fee for their new home. 79% of FHBs in NSW are confident that it is the best time to hit the property market. They are the ones who are keenly attached with attributes like high capital growth and rental yields.
As a first home buyer, would you seek property as an investment or a principal place of residence?