2022: The Year to Buy a Home
2022 is the year to buy a home. With Australia settling and coming out of the COVID-19 pandemic stronger than before, house prices have skyrocketed. Alongside this, interest rates are frozen at .10% by the RBA, the lowest they have ever been. With prices only expected to climb higher and higher, why not make 2022 the year to buy a home?
Buy a Home in 2022 – The Market Right Now:
Industry experts predicted that house prices would return to pre-COVID levels in the back half of 2021. That certainly was the case, with house prices growing by 30.4% over the past year. House prices have kept on rising, have been pricing first home buyers out of the market.
This strong growth has been fuelled by the surging demand of property investors that are looking to capitalise on the RBA’s 0.1% cash rate, the lowest it has ever been in Australian history. This means that over the course of their mortgage, these investors generally pay less interest, and therefore reap larger returns on their investment.
Buy a Home in 2022 – How To Get Into the Market:
With property prices soaring, how does a first home buyer get into the market? Taking advantage of schemes is a good start. There are plenty of schemes available to home buyers, which can knock thousands off of the purchase price of a home. For example, the First Home Loan Deposit Scheme (FHLDS) allows homebuyers to secure a property with as little as a 2-5% deposit.
Home buyers may also be eligible to waive the cost of stamp duty in 2022. Opting for a smaller annual property tax, this would significantly reduce the upfront cost of buying a home. This is still in the proposal stage, however first home buyers and those who can prove financial hardship are eligible to gain a stamp duty concession or even waive it all together. Find out more here.
There are other key principles that first home buyers can abide by to best give themselves the chance of getting into the market, which you can find out here.
The General Economic Standing of 2022
Everyone is looking forward to shake off 2021, and make 2022 the year they get onto the property market. Hamish Ferguson of Vision Newcastle believes that “improving job prospects, increased infrastructure spending and market confidence are all signs that 2022 is the time to consider investing.”
Large infrastructure projects are further connecting regional areas. The rise of zoom and digital workplaces have reduced the necessity to live in an expensive locality to a workplace . These changes are driving regional investment into cheaper property options, specifically in areas like Newcastle and Outer Brisbane.
Take Action on These Trends
These market trends, government schemes and economic conditions are not permanent. Your home deposit might be much larger or smaller than you think with these government schemes, the increased validity of regional property options and rising house prices. Vision Property and Finance is offering a free consultation with one of our industry award winning experts to help you capitalise on these conditions. Book in a chat with us below: