Warning to First Home Buyers
First-home buyers are being urged to plan carefully before entering the property market with a big mortgage and to expect rates to rise. Latest figures from RateCity and the Australian Bureau of Statistics show first-home buyer numbers climbed in all states and territories in May. RateCity spokeswoman Michelle Hutchison says buyers entering the market for the first time need to be careful. “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,” she said.
“Two per cent is an extra $400 per month.” The key for first home buyers is to have a good budget, and to be well planned. “A good budget as well as trying to build that equity position is probably the most crucial thing they can do,” said Suncorp’s Regional General Manager, Darrin Hanigan.