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Real estate changes as a result of the coronavirus have made for an appealing market for first home buyers.
Here are five reasons why rookie real estate buyers should be spending their time at home during the COVID-19 crisis sharpening their search for their first property purchase and making it happen for them.
Investors have taken a back seat
Less competition is a good thing for first-home buyers. It means the market isn’t sprinting forward and prices won’t be pushed up by keen investors with deep pockets. Traditionally (especially in the cities) investors and first-home buyers go for the same types of property in similar neighbourhoods, such as city-fringe units in palatable price brackets. Since the eviction moratorium, investors have cooled and the result is a quieter playing field for first-home buyers.
Interest rates couldn’t be more interesting
It’s never been cheaper to pay off a home loan. Many first-home buyers’ parents or grandparents took on mortgages with interest rates that soared as high as 17 per cent in the late 1980s and early 1990s, but today’s rates are rock bottom. CoreLogic data even suggests that more than a third of Australian properties had estimated mortgage repayments less than local weekly rents.