2021 is the year to buy a home. Coming off of the back on the COVID-19 pandemic, house prices and interest rates have strongly swung back in the favour of property buyers for the first time in decades. Alongside this, there are now a significant amount of government schemes available to help property buyers get onto the ladder through supercharging their home deposits and removing stamp duty. Find out why 2021 is the year to buy a home below:
Buy a Home in 2021 – The Market Right Now:
Industry experts have predicted that house prices could return to pre-COVID levels in the back half of 2021 if Australia and NSW keep up its tight COVID precautions. Sydney experienced a 2.2% drop in prices in the second quarter of 2020. This drop has stopped, with a 1% rise in prices over the third quarter. Corelogic and other industry experts expecting an even stronger fourth quarter.
Alongside this, to encourage economic activity, the RBA has dropped the cash rate to the lowest point in Australian history at 0.25%. This has led to lower interest rates from lenders as it opens up the potential for more competition in the market.
Low rates, house prices expected to grow over the course of 2021? Now is the time to get onto the market!
Buy a Home in 2021 – The Schemes Available:
There are plenty of schemes available to home buyers, making their home deposit potentially being worth thousands more than originally thought. First and foremost, there is the First Home Super Saver (FHSS) scheme. This allows for up to $30,000 to be accumulated through superannuation, and added to through contributions, salary sacrificing and other methods. For more information, click here.
You may also be eligible for the First Home Owner’s Grant (FHOG). This allows for $10,000 to be granted towards the purchase of a new home. There are some requirements that require to be satisfied. Find out more here.
Home buyers may also be eligible to waive the cost of stamp duty in 2021. 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.
The General Economic Standing of 2021
Everyone is looking forward to shake off 2020, and make 2021 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 2021 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.
Take Action on These Trends
These market trends, government schemes and economic conditions are not permanent, with pre-COVID levels of property prices expected to return around mid-2021. Your home deposit might be much larger than you think with these government schemes and the increased validity of regional property options. 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 with us below or give us a call at 02 4014 1999.