Why you need to purchase property NOW amid the ‘best ever’ market for first home buyers

First-home buyers have been urged to purchase property now amid warnings the ‘best time ever’ to enter the market won’t last much longer.   

Housing Minister Michael Sukkar said the market is already bouncing back – and warned house prices will likely increase further when the government’s First Home Loan Deposit Scheme is introduced next year.

‘If you’ve got an opportunity to get a foot in the market before then you should take it, given I think the market is starting to improve… People who buy now I don’t think will regret it at all,’ Mr Sukkar told The Australian.

The scheme, announced by the Coalition during the Federal Election campaign, will be available to first home buyers and allow them to get a mortgage with just a five per cent deposit on their loan.

First-home buyers are currently required to pay 20 per cent.    

Property economist Andrew Wilson agreed with Mr Sukkar, saying the market conditions were possibly the ‘best ever’ for first-time buyers, 

‘It’s a very good scenario for first-home buyers. They’ve still got those stamp duty concessions in NSW and Victoria, where they don’t have to pay stamp duty on a house worth up to $600,000 in Victoria and $650,000 in NSW,’ he said.

He added that markets, particularly in Sydney and Melbourne, were currently ‘feeling for the bottom’ – but would soon bounce back.  

Meanwhile, Mr Sukkar claimed a re-elected Morrison government has put more ‘confidence’ in the market.  

‘We’re seeing green shoots in Melbourne and Sydney in the last quarter and I think with low interest rates, with APRA reducing service­ability buffers, all those factors combine to confirm that optimism,’ he said. 

It comes as a new Commonwealth Bank report found 91 per cent of first-home buyers believe owning property is now within reach, compared to just 80 per cent the same time last year. 

The government’s First Home Loan Deposit Scheme, announced by the Coalition during the Federal Election campaign, will be available for first home buyers able to save up at least five per cent of their deposit (stock image)

The First Home Loan Deposit Scheme will be available for single people earning under $125,000 and couples earning a combined salary under $200,000.

The Coalition have also pledged to invest $25 million in the National Housing Finance and Investment Corporation to establish the Scheme and develop the expertise to conduct research into housing demand, supply and affordability in Australia. 

The National Housing Finance and Investment Corporation will receive $500 million in the form of equity to focus on improving housing affordability. 

The scheme is limited to 10,000 first-buyers but Mr Sukkar suggested the government could be willing to discuss extending the scheme if it were successful.  

Mr Sukkar said the government are ‘examining all options’ at the moment to ensure the scheme is fair in its availability to all people.

This includes considerations about a ‘first in, first served’ method or whether the scheme should be capped per state or territory. 

Mr Sukkar advised first home buyers to still save as ‘big’ a deposit as possible.   

The average household takes nine to 10 years to save a deposit and the Coalition hope to change the wait time by cutting years off the time it takes to save up.  

Mr Sukkar claimed a re-elected Morrison government has put more ‘confidence’ in the market. ‘We’re seeing green shoots in Melbourne and Sydney in the last quarter and I think with low interest rates, with APRA reducing service­ability buffers, all those factors combine to confirm that optimism,’ he said (stock image)