The time is right for first home buyers looking to get on the property ladder, Aussie’s John Symond has claimed.
According to the brokerage’s executive chairman, higher levels of savings, increasing rents, stable interest rates, a softer housing market and the banks relaxing their lending criteria have all combined to create a unique opportunity for first home buyers.
“Market conditions are certainly favourable for first home buyers,” he said.
“The large number of properties available for sale on the market has created ideal conditions for buyers to negotiate on price.”
Mr Symond said there was also considerable pressure on rents, with many home buyers looking at paying weekly rents which may be comparable to loan repayments.
“It is worth investigating the options of buying a home versus paying rent to a landlord as potential buyers may be pleasantly surprised.”
Mr Symond said Australians have heeded the Reserve Bank’s warning about taking on too much debt and have begun to save – which bodes well for home loan deposits.
“Banks are also relaxing their lending criteria and lifting their LVRs (loan to value ratio) to higher levels, meaning home buyers can have a smaller deposit than has been required in the aftermath of the Global Financial Crisis,” he said.