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First homebuyer numbers on the rise

First homebuyers are increasingly breaking into the Australian property market, according to recent figures.

March figures from the Master Builders Association (MBA) revealed first homebuyers had increased their market share nationally.

FHBs accounted for 27.6 per cent of owner-occupier housing loans in March, the largest slice of the pie for the demographic since September 2012.

“First homebuyers are becoming an increasingly vital driver of activity in our housing market, especially with investor activity so quiet,” MBA Chief Economist Shane Garrett said.

In Western Australia, first homebuyers made up 36.9 per cent of the owner-occupier housing loans in March, second only to the Northern Territory (42.9 per cent).

Tasmania had the lowest FHB participation (20.7 per cent), beaten by South Australia (21.7 per cent), the ACT (22 per cent), and New South Wales (24.8 per cent). Queensland came in at 27 per cent and Victoria at 30 per cent.

“There is much potential for FHBs to support new homebuilding activity in the years ahead,” Mr Garrett said.

“Our economy has generated more than 600,000 new full-time jobs over the past three years, and many of the people in those jobs will want to buy their first home in the near future.”

Why build?

New Homes sat down with two recent first homebuyers who shared their insights into their decision to build.

Ana Skelton wanted an option which didn’t require expensive renovations or upgrades to a pre-existing property.

Enlisting the expertise of Easystart Homes, Mrs Skelton said the decision to build as a first homebuyer came down to cost, customer service and understanding every step of the process.

“We relied heavily on our consultant to fill us in on a lot of the things that were happening,” she said.

“A lot of the information we found online was hard to decipher, so it was great to find a consultant who wasn’t out for our money.”

Mrs Skelton said her background research came in handy.

“It’s important to do your own research on the quality you will be getting for the money you are spending,” she said.

“I found it was important to do background research and not just take on the first opportunity that came forward.”

Currently in the pre-start process, Mwaba Mwaba selected My First by Pindan Homes to bring her dream to life.

“I think the current housing market is favouring the buyer,” she said. “Buying new rather than established has its advantages right now, with the savings on stamp duty as well as potential equity growth that comes with a new build.”

Ms Mwaba said she had enjoyed the process with My First by Pindan Homes thus far, and encouraged other prospective first homebuyers to look into the possibility of owning their own home.

“People have their heads buried in the day-to-day whirlwind of working hard and paying rent and bills,” she said. “They don’t know where to source information about how they can own their own home, rather than pay rent and contribute towards paying off somebody else’s mortgage.

“I don’t think enough people understand that for the same amount they are paying in rent, they could potentially be in a position where they could build their own home.

“I would like to see Keystart, building companies and mortgage brokers working together to raise awareness in the community – particularly among low-income earners – about how they can be economically empowered to own rather than rent.”

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