The fall in property values in the Sydney and Melbourne markets has opened the door to first-home buyers getting a foot on the property ladder.
However one of the critical components (and therefore challenges) to making a successful property decision as a first time buyer is to select a high quality asset.
This is because the first purchase can either set you up for success on the property ladder or hold you back.
Given the falls in value that have already taken place, the likelihood is increasing that the most desirable properties will become relatively insulated from further price falls.
The price values for first time buyers usually fall within the bell curve given their affordability levels are often aligned with where most of the middle class can afford to rent or live.
This adds another layer of demand for these properties which helps to underpin values during turbulent times and support growth into the future!
We have already seen early signs of the lending markets opening back up with the investors caps being lifted on the number of interest only loans and loan growth.
History suggests troughs in all markets are the best time to take action for those who have the courage!
David Johnston, Founder and Managing Director of Property Planning Australia, shares his insights in Daniel Butkovich’s article “What first-home buyers need to do to crack into the market in 2019” for Domain.