The First Home Owners Grant has helped many first time home buyers in Australia get into their very first home. And it has caused quite a stir throughout the real estate world as realtors and mortgage companies as well as banking financial institutions try to evaluate the effect that the grant is having on the overall real estate market in Australia.
An Upswing In Less Popular Areas
The property in upmarket suburbs of Australia has been on the decline in recent months. And while these areas are still declining, the less popular suburbs and areas that have been neglected or over looked in the past are getting a lot of attention from first time home buyers. While the million dollar suburbs are seeing a decline in property value and appeal, the suburbs such as Mansfield Park, Ottoway, Port Adelaide, Enfield, Caboolture have all seen capital gains of more than 20% over the course of the last year for homes that sold for less than $350,000.
Increase Due To Better Affordability In Previously Overlooked Areas
One obvious reason why the above mentioned areas are doing so much better than the more affluent areas of Australia is the more affordable purchase price. But another reason why these areas are receiving so much attention is due to the types of people who are looking. First time home buyers who have been scrapping money together to purchase their new home typically do not have the funds needed to buy higher end homes in affluent upscale areas. And since first time home buyers are such a big part of the house hunting group presently this makes it harder to sell those higher end homes.
In the next installment of this series we will look at some other factors that are involved in the surge of home buyers in unlikely area.
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Tags: Enfield, first homeowners grant, government grant, proeprty options blog, Real Estate
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Hi Sean,
The first homeowners grant has made it a little easier for people to get their first foot in the door of the real estate market. This is why the unlikely areas have become more popular. Everyone is after a house with an affordable purchase price.
A lot of Australians are battling to get together a deposit due to paying rent a the same time. The first home owners grant gives them a lump sum incentive to get out there and get their own home, and the bargain end of the real estate market is where they focus their attention for sure.