Buying a home during Covid19

Buying a house is a dream for every Australian, not only does it set you up financially for the future but the freedom of having your own space and ability to invite friends and family over whenever is something we all strive for.

Housing has always been a pillar of the economy in Australia. In the last 20 years the market has increased to 150% (Ref 1). This bubble has come as a result of overconfidence in the market and home loan facilities within banks making it much easier for people to borrow.

Recently, however, due to the COVID-19 pandemic this bubble has burst creating opportunities for first home buyers and people wanting to break into this market for the first time.

The Commonwealth Bank of Australia (CBA) and the Reserve Bank of Australia (RBA) have been expecting a drop between 10-40% in the market over the next couple of years (Ref 2 & 3).

This will create an opportunity for new first home buyers, as they will be able to acquire a home with a lower deposit. Additionally the government is aiming to boost the economy through offering incentives such as:

1. First Home Buyers Grant: Up to $10,000 for people attempting to enter the market for the first time
2. New Home Builder Scheme: Up to $15,000 for people that are buying off plan or wanting to construct their first home 

At FIN15 we can work in conjunction with you to create a budgeting plan to help you save as much as possible to set you up and provide you with a jumping off point to purchasing your first property.

We investigate the requirements and the criteria for all grants to ensure you gain as much help from the government. For example, we can analyse your available cash flow and work with you to create a plan to save a target amount over a specified number of years, with this amount being used as a down payment in the future.

See how we did this for Bob

While you may believe that buying a home is near impossible or out of reach, at Fin15 we can identify opportunities to grow your savings and work toward your financial goals.

Sign up and let’s discuss today! 

 

Refrences:

 

1. https://www.smh.com.au/business/banking-and-finance/house-prices-could-fall-32-per-cent-under-prolonged-slump-cba-20200513-p54sik.html
2. https://www.news.com.au/finance/economy/australian-economy/rba-predicts-a-potential-40-per-cent-drop-in-house-prices/news-story/bc4e6189c8404a4a2c34d35a1d9e6668
3. https://www.smh.com.au/business/banking-and-finance/cba-still-expecting-house-prices-to-drop-at-least-10-percent-20200812-p55l14.html