A winning combination of new home buyer government grants and enticingly low interest rates has led to the rise of new home sales for the third straight month. March saw the number of new home sales go up once again according to a recent survey. The sale of new homes is good news for the Australian economy and helps to provide job security for many Australians.

An Increase In Buyers

A recent Housing Industry Association survey has found that new home sales increased during the month of March by 4.2 percent with 8210 new homes being sold. This was after an increase of 7.8 percent during the month of February. The market for new homes has enjoyed a recent upswing as a result of the first home owners grant and low interest rates. With more people wanting to cash in on the first home owners grant there should be an increase in jobs that also helps o boost the economy.

More Homes Being Built Means More Jobs For Australians

The first home owners grant is not only helping to get many Australians into a home for the first time and helping to boost the economy, but it is also providing jobs to many workers. Thanks to the $21,000 Federal Government grant money offered for homes that are newly built jobs in construction are in high demand, as are other construction related jobs. This is very good news for the Australian economy.

Pressure To Keep The Grant Going

Many people have been pushing for the continuation of the first home owners grant and pressure has been put on the Federal Government to extend the deadline for the grant past the June 30th deadline to continue the upswing in the housing market.

Property Options Australia
Property Options Blog © 2006 - 2009

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The low interest rates and lower house values, along with the government first home buyers incentives have led many first time home buyers to look into purchasing that new home that they have always dreamed of. But before jumping into a new home purchase there are a few things to consider.

With the government incentives and the low interest rates and housing prices now is a good time to buy a new home before the market jumps up again. The best time to get into a home is when the prices are down and the rates are low. But it is important not to rush into a big decision such as buying a property.

First Figure Out The Basics

One of the first things that you will want to do is determine how much house you can actually afford to buy. When you are looking to move into an unknown area get an idea of what the median prices of homes are in that area before you buy anything. The last thing you want to do is pay a lot more for your home than what everything else in your area is worth. The value of houses varies greatly from region to region and state to state. Prices can even vary greatly within a city limits so do your homework first and find out what the houses in the area where you want to live are worth.

Another good way to determine if you will like a certain neighborhood is to talk with the people who live in the area. Also, if you are able to, visit the area that you are interested in at varying times throughout the day. This will give you a better idea of what it is like to live there overall.

Property Options Australia
Property Options Blog © 2006 - 2009

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The majority of adults today can remember the last time it was difficult for people to find jobs, especially those who are young with no experience or qualifications. Such a time is upon us once more, even in the great country of Australia. It should be explained to individuals under twenty-five how to grasp the concept that the world does not owe them a guaranteed career earning at least $70,000 as soon as they get out of school.

Why Invest?

When it comes to surviving the recession, there are several ideas that are passed around such as eat at home more than going out, avoid buying designer things and even buy property now. It seems that now is a good time to invest in property in Australia. Here are a couple of facts about the current property market in Australia:

• First home market is flourishing thanks to government grants.
• Upper and middle market is frozen
• There are not many people listing

Even though the auction clearance rates persistently rise, the total number of these sales has dropped considerably. The current clearance rate in Sydney is up over 60%, which is close to 20% higher than it was at this same time last year. However, the number of properties listed was only down just over 120, which is more than a hundred less than the previous year.

The Right Move?

It is true that the majority of first-time homebuyers are able to obtain at least $21,000 worth of government grants, which in regions like Victoria will contribute, at least in part, to paying the government’s sales tax.

Sadly, young couples seem convinced that if they purchase a new four-bedroom home for $400,000 from the CBD, that they are making a solid investment. However, there are a few problems to be aware of such as:

• $400,000 is not that great of a deal, even if you only pay $280,000 for it.
• Even if you have two children, you will not need a four-bedroom home until they are almost grown. Do not waste money on interest that you should pay for another ten to fifteen years.
• Young couples are not interested in living in the middle of nowhere.
• Even shiny new houses require maintenance at one time or another.
• This is not the real market; instead, the government continues to subsidize the boom in the first-home buyers market. Therefore, you cannot sell until June 30.

Property Options Australia
Property Options Blog © 2006 - 2009

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With the New Year here many people are looking at making 2009 the year they buy a new home. And with government incentives to help first time home buyers now is a great time to get that home that you have always wanted. Some areas are more desirable than others to buy a home in. Some of the places that are considered to be hot spots for 2009 include Sydney, Melbourne and Brisbane. There are also some regional areas that promise to provide great buyer appeal in the coming year.

Gauging The Temperature Of Real Estate In Australia

The real estate market in Australia proved that it can stand the test of time in 2008 showing resiliency and fortitude. Despite the fact that many share markets fell an average of 40%, house prices held fairly steady showing only an average decline of 1.5%. In 2009 there will be many factors that will drive the market either up or down. These factors include:

• Falling interest rates

• Affordability

• The cost to rent houses or apartments

• Investment yield potential

• And an undersupply of available homes

These factors will help to drive the prices of homes up. The areas where the most growth will be seen are in the areas that exhibit many of these factors. Also the government grant opportunity to double the money given out expires at the end of the fiscal year, so home buyers will be looking to take advantage of that while they still can.

While markets that have these driving factors are expected to do well in 2009, some markets are not expected to do well at all. Markets that are already affluent and where the demand has been reduced are not expected to experience good growth in 2009. Another area that is not expected to do well are vacation homes, and areas that are dependent upon holiday travel and tourism. This is due to the fact that in 2008 many people had to unload these extra homes due to financial difficulties.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2009

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