How many of us out there dream of owning a new home? Whether it is your first home, an investment property, or you are downsizing, purchasing real estate is a very considerable investment.
If you are considering buying an investment property, you are probably thinking along the lines of creating a source of passive income or a valuable little nest egg for the future.
Whatever you are buying a new home for, perhaps the second biggest factor outside of finances is timing, as Australians and the world found it in 2007-2008 during the Global Financial Crisis.
This article is not suggesting another GFC is just around the corner, but it is suggesting you do your homework, not only into the housing market, but into the state economy. For example, studies suggest that the Queensland property market is poised for an upturn following the decline of the mining boom.
Let’s take a look at one home-buyer scenario and see if buying a new home is the right call in your circumstances. We will also look a little closer into some studies of the Queensland property market. Might we add, we are not giving you home buying advice—merely calling it how we see it.
Buying a new home for the first time
Are you dying to get out of the rental market? Would you rather be paying off your own mortgage? Obviously! But it’s not that easy. Saving for a house deposit and breaking the vicious renting cycle is the hardest part.
You have been working a number of years now and putting away a great amount of savings for a new home deposit. Are you and your partner planning on bringing new life into this world? A new home is always a great place to start new journeys.
Whatever stage of life you are at, you need to make consideration to the following points if looking to buy a new home:
- Have you saved enough for your own new home deposit, or are you seeking financial assistance from banks or your family?
- With this, have you also thought about the ‘hidden’ or added expenses? When you buy your new home, the deposit isn’t all you will pay. Most likely, you will also need to pay fees such as those to pay legal and conveyancing bills, and even stamp duty.
- What about your financial status? Would you say it is secure? Do you and/or your partner have stable jobs?
Buying a new home in South-East Queensland
The big question: when is the right time to buy a new home? That questions is a difficult one to answer and maybe there is no right answer. It certainly depends on your own personal circumstances first. Secondly, it will depend on the market.
South-East Queensland is one of the fastest growing areas of Australia and the Gold Coast is one of Australia’s fastest growing cities. For these reasons, house prices have been notoriously high in recent years.
According to Matt Barr, (General Manager of Oliver Hume Queensland):
“As more jobs appear and more residents appear to fill them, Queensland has sustained a steady growth in new home building approvals, with the number of new housing approvals outpacing attached dwelling approvals for the first time since early 2017.
“This growing population and resurgent economy is expected to have a positive impact on the property market for the foreseeable future. Only time will tell the scale of the impact, but there is little doubt about the direction.”
Read the full article here.
But recent data also suggests that the South-East Queensland property market could turn in a positive direction following the decline of the mining boom.
So, what does all this mean? Is it the right time to buy a new home? You will need to weigh up the investment. Maybe the median home price has risen throughout South-East Queensland, but because of the increasing population and demand, you may see a fantastic return on your investment one day. These considerations all need to be made.
Financial assistance when buying a new home
Our state government recognises the difficulty in buying your first home and therefore, have several ways in which to subsidise the initial costs. First homeowners, if eligible, could see stamp duty waived and reduced fees.
In addition to the First Home Owners Grant, the Queensland Government offers what’s known as a first home concession. “You can claim a first home concession for transfer duty when acquiring your first residence,” says the government website.
You can read all about the eligibility requirements on their website here.
If you are in the market of buying a new home, please consider the commitment you are making through your financial circumstances, as well as the needs of you and your family.
If you need assistance in seeking financial aid, please don’t get hesitate to get in contact with our friendly Newstart Homes team. We would be glad to help you achieve your new home dreams.
You can read more about this subject in our previous blog post: Looking For A New Start With A New Home?
Please feel free to browse our home designs for some new home inspiration!