Property Market Sees Influx of Young, Savvy BuyersWhile the end of the first-home buyers grant was expected to dampen the market’s appetite for new property, it has in fact created a range of new and creative buying trends amongst younger Australians.

These trends include ‘property shares’, where multiple buyers – often friends or family members – acquire individual home loans for their share of a jointly owned property, and ‘guarantor’s support’, where the borrower’s parents offer their home as equity.

However the most widely used strategy has become borrowing to buy a first property and remaining as an investor rather than an owner-occupier.

Members Alliance CEO David Domingo says these creative strategies have made it possible for more first-home buyers to enter the property market than ever before.

“First-home buyers are now researching to find high growth suburbs and opting to buy rental apartments or houses while living at home or renting a different property,” says Mr Domingo.

“Trends are showing the preferred choice is new housing stock such as detached houses or inner-city apartments with affordability as a major factor.

“The simple fact is that Gen Y are preparing now for when they eventually move out of home, and it’s creating pent up demand for affordable, low-maintenance dwellings that fit this new criteria.”

The latest data from the Australian Bureau of Statistics (ABS) confirms first-home loans as a proportion of all owner-occupier finance commitments are at a record low. Mr Domingo says an RP Data report of sales throughout 2013 show 39.4 per cent of capital city unit sales and 27.1 per cent of capital city house sales were below $400,000 – showing affordable opportunities for first-home buyers are still out there.

“There was unprecedented hype around Gen Y unable to enter the property market when the first-home buyers grant for established homes ended, but that has since died down with reports of young buyers now preferring to enter the property market as investors,” says Mr Domingo.

“2014 first-home buyer activity is growing with people aged between 25-35 who are now thinking creatively in terms of how they will enter the property market and buy their first property.

“It’s a matter of the buyer adapting to the ever-changing market and finding a way in that will benefit them financially in the long run, rather than buying a home to live in purely based on emotion.”

If you are planning on buying your first property, call us on 1300 365 731 to find out how we can help.

www.membersalliance.com.au