17/09/2012 - 15:19

First homebuyers flock back to market

17/09/2012 - 15:19

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First homebuyers flock back to market

The number of first homebuyers in Western Australia’s residential property market hit its highest level in nearly three years in August, new research says.

First home-owners grant data released today by the Office of State Revenue showed 1,728 people applied for grants in August, the highest figure since November 2009.

The figures are up 41 per cent on August 2011 and 106 per cent on a seasonal low in January 2011.

A total of 1,226 applications were for established houses, while 502 were for new dwellings.

Applications for new builds was up 41 per cent over the past four months, compared to the first four months of the year, which was also reflected in a healthy upturn in finance for new housing since April.

For grants paid, August’s 1,568 total was the highest since March 2010.

Urban Development Institute of Australia WA chief executive, Debra Goostrey, said first home-buyers were keen to take advantage of low mortgage rates, which have dropped by nearly 1 per cent since October last year.

“Young buyers are particularly are feeling the impact of high rental costs and are seeing that the cost gap to service a mortgage is quickly decreasing,” Ms Goostrey said in a statement.

Ms Goostrey said potential buyers could lock in repayments of $500 per week for the next three years on a $340,000 loan.

“After five years of relatively subdued property activity, there are a range of affordable properties to suit the needs of young buyers and families,” she said.

 

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