First home buyers are being warned to get on the property ladder quickly amid speculation investors will be a dominant force in the property market in 2021, according to experts.
Real Estate Buyers Agents Association (REBAA) president Cate Bakos said first home buyers would be wise to take advantage of the grants and incentives currently on offer along with smaller loan deposit requirements.
She said tighter rental stock over the coming months in both capital city and busy regional locations (with the exception of oversaturated high-rise locations) would see rents rising and more investors entering the market.
The warning comes after last week’s release of the Australian Bureau of Statistic’s housing finance data* which showed the largest month-on-month surge in home lending.
The value of new loan commitments for housing spiked 12.6 percent in August representing $21.3 billion of property debt. The value of owner occupier home loan commitments was $16.3 billion.
The figures indicate some recovery in Australian consumer demand which is also tipped to enjoy the benefit of more relaxed lending guidelines from March next year, if and when the changes to our Responsible Lending Guidelines are initiated, in an effort to aid our nation out of a recession in a timely manner.
“We anticipate further buyer interest, particularly from investors, to be stimulated by historically low interest rates, Australia’s strong position in fighting COVID-19 and the loosening of responsible lending guidelines next year,” said Ms Bakos.
“Volatile sharemarkets have a history of pushing people towards property and we don’t see that being any different this time around.”