ANZ/CoreLogic Housing Affordability Report
The latest report by ANZ/CoreLogic on Housing Affordability paints a tough picture for those looking to buy houses, as according to this report, things are getting much harder. Here are some of the key statistics from March 2024:
- On average, people spend about 32.2% of their income on paying home rentals, an all-time high.
- To pay off a new mortgage, people are using 48.9% of their total income.
- It takes about 10.3 years now to save up for a 20% deposit on a house.
Expert Tips For First Home Buyer
Given these challenges, we sought the expert guidance of our seasoned Home Loan specialists and experts. Let’s explore their valuable insights:
Mastering Negotiation Tactics for First Home Buyer
Our expert at Loan Junction shares some valuable tips to help first home buyer succeed in today’s competitive housing market. Let’s go through them:
- Set realistic expectations when making an offer: In today’s highly competitive market with limited home supply, do not expect to find a bargain. Focus on achieving a win-win outcome for both you and the seller.
- Understand the seller’s flexibility around the settlement date: Sellers often have specific requirements regarding the settlement (i.e. the closing date). Aligning your offer with the seller’s needs can make it more appealing. For example, a couple moving to assisted living may need extra time to find their next home. Offering a later settlement could give your offer an edge.
- Look at properties with leases: Many investors are leaving the market due to high holding costs, leading to more listings with existing leases. While many first home buyers avoid these properties, they can present great opportunities, especially with fewer competitors. We will guide you through securing financing and setting a favorable settlement date.
Minimize Liabilities
Experts advise first home buyers to maintain a clean credit history and minimize their liabilities. This improves their chances of qualifying with more lenders and gives them extra leverage to negotiate better rates.
There are three key benefits for first home buyers: stamp-duty waivers, government schemes from Housing Australia, and the First Home Owner Grant. Each has its own set of eligibility criteria, so it’s important to consult with brokers to fully utilize them.
Buy What You Can Afford
The best time to buy a house is now, and you can always upgrade later. So, buy what you can afford at present.
Get Pre-approved
It is crucial to understand the significance of securing pre-approval before purchasing your first home. Do not rush straight into buying. Instead, take guidance from a broker to get pre-approval and determine how much you can borrow. This will help reduce stress during the loan application process.
If you are considering buying a home, we at Loan Junction with a team of expert mortgage brokers are available to help & guide you. You may contact us through our website or call us for more tailored solutions suited to your specific requirements.
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