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First home buyers are getting help from ScoMo and taking advantage of softer property markets. Here’s how you can tap into this growing market in 2019 and beyond.
In a property market nationwide which will be soft and steady for some time, first home buyers present a massive opportunity to agents.
For one, the sheer number of first home buyers entering the market is good news, and the projections are looking healthy.
Data from the Australian Bureau of Statistics shows the number of purchases per month made by the first-time buyer has increased across the June 2017 to November 2017 period by about 2,000 on average. Add to this the government incentives, like allowances for 5 per cent deposits courtesy of Scott Morrison’s election promise, and the numbers are tipped to rise each month.
However, first home buyers are a market which needs careful understanding to capitalise on. First and foremost, understanding their budgets and what incentivises their purchasing decision is paramount. For the National Real Estate Association, this means knowing what grants are available for first home buyers in the state you’re selling in.
“One question that first-time buyers may have when they start their journey to home ownership is what grants and concessions may be available to them. Being familiar with this changing, state-based grants are particularly important when listing properties that have a guide price close to the grant and/or concession value cut-offs,” it said in an update.
Similarly, be aware of the types of properties that will attract government concessions for first home owners. For example, new builds in NSW have historically had grants associated with them for first-time buyers.
Finally, while pressure tactics may work with experienced buyers, pushing it with an inexperienced buyer could overstimulate the fear factor. Be sure to recognise the importance of comfort and security for a first-time buyer. They’re likely to be leading with emotion and are venturing into unknown territory, and will be seeking reassurance in their choices.
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