Super low interest rates, subdued competition from investors and a helping hand in the form of government grants have made it much easier to climb the first step on the property ladder.
In the month of September first timers accounted for more than 40 per cent of all new loans, reports Your Investment Property Magazine.
This month’s interest rate cut from the Reserve Bank of Australia will only make it easier for first timers to take advantage of affordable buying conditions.
“With historically low interest rates and the RBA cutting the official cash rate to 0.1 per cent; it’s never been cheaper to access home finance,” says Real Estate Institute of Queensland CEO Antonia Mercorella.
“At the moment, the average variable rate is 3.34 per cent p.a. If lenders pass on the 0.1 per cent cut in full, the new average will be 3.19 per cent p.a.”
Many banks are offering fixed rate loans from under 2 per cent – so it pays to shop around for a great deal.
The low interest rate environment also means it’s worth doing your sums to find out if it’s cheaper to rent or buy in your suburb.
“Queensland’s affordability and liveability continue to be its greatest assets, as buyer interest continues to increase month on month,” Ms Mercorella said.
“It’s very pleasing to see many renters make the transition to homeownership too. With a diverse range of housing options on the market, if you shop around you may actually be better off financially owning a property rather than renting one.”