First Home Buyers Seize their Opportunity
First-home buyers are taking advantage of lower property prices and falling interest rates, but are being warned to plan carefully before entering the market. Latest figures by RateCity and the ABS show that first-home buyer numbers climbed in all states and territories in May. In Queensland, first-home buyer numbers increased by 15.2 per cent to 1886.
“First-home buyers who are thinking of entering the market this year should include a two per cent buffer in their budget to ensure they can afford an increase in interest rates,” warned Michelle Hutchison, spokesperson from RateCity. “Two per cent is an extra $400 per month.” The key for first-home buyers is to have a good budget and to factor in all of the costs that come after buying a property. There will be costs like insurances, repairs and maintenance that may not be anticipated by some entering a mortgage for the first time.