Scott Palazzi from Loan Market shares why 2024 could be the best time for first-home buyers.
Despite some potential challenges, 2024 could actually be a good time to get into the housing market. Here’s why.
Savings interest rates are up
The pro of the cash rate going up is that savings interest rates also tend to go up. This can help expedite saving for a deposit.
It could be cheaper to be a homeowner
According to PropTrack data, it is now cheaper to buy an apartment rather than to rent in most capital cities (based over a ten-year period with a 20% deposit). In fact, a third of properties nationally are cheaper to buy than rent.
The First Home Guarantee has expanded
In 2023 the eligibility criteria for the First Home Guarantee, Family Home Guarantee and Regional First Home Buyer Guarantee was expanded, enabling eligible buyers to get into the market sooner. This means if you have a 5% deposit (or 2% if you are a single parent or guardian), you may be able to use one of the schemes to purchase property without paying lenders’ mortgage insurance.
‘Help to buy’ scheme to be introduced
The federal government has announced plans to roll out a new scheme that will help up to 40,000 eligible buyers with as little as a 2% deposit get into the housing market with lower repayments.
If 2024 is the year you want to purchase your first home, it is a good idea to speak with your broker to find out how much you may be able to borrow and set a plan in place to achieve your goal.
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