Market slowdown is great news for new home buyers
There has been plenty of movement in the real estate market of late to convince home buyers to take advantage of the Queensland First Home Owners’ Grant (FHOG), before it reduces from $20,000 to $15,000 after June 30.
A total of 15,313 applications have been received since the grant was boosted to $20,000 on July 1, 2016 with big increases in March and April as the grant reduction sinks in and buyers bring forward plans to buy their own homes before the end of the month.
While builders, developers and real estate agents have come together to pressure the government to extend the grant, the Queensland Government has given no signs of changing its strategy saying the grant has achieved its goals. This includes creating jobs in regional areas, boosting the local economy and helping Queenslanders get into their new homes sooner than expected.
However Darren Walters, head of No1 Property Guide, the state’s most respected in the low and no deposit new home industry, said the market has shown signs of slowing anyway due to the Banking Royal Commission, with lenders now taking weeks, instead of days, to approve loans.
The Banking Royal Commission has acted like a broom through the financial industry, a much-needed investigation that has uncovered poor financial dealings — and some criminal activity — with the big lenders in the market. This has naturally led to a more circumspect approach by the institutions as they reassess their lending strategies.
However, Darren added that his experience in the Queensland new home market means this will be a positive thing.
“We are excited about the market turning for first home buyers, as this means the land value will come back a little making it more affordable in some of the areas that have had huge growth,” he said.
“While growth has been a sign that first home owners in Queensland have been utilising the FHOG and has been a boon for more regional areas, a market correction will allow first home owners just coming into the market a fair go,” added Darren.
“As always, our team is primed to help all potential first home buyers, who are looking to get into their low or no deposit home, providing them with full turnkey land and home packages with quality builders, far quicker than they previously thought was achievable.”
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