Where have first homebuyers gone?

By |

Investors are dominating the NSW and Queensland mortgage markets amid a drop in first homebuyer numbers, according to AFG December figures. 

Home loans for investors comprised 46.3% and 35.9% of all AFG home loans arranged in the two states respectively, while loans arranged for first homebuyers collapsed to just 4.2% in NSW and 4.5% in Queensland over the last two months of 2012. In contrast, the average long term share of home loans arranged for first homebuyers is usually between 12% and 15%. 

AFG general manager of sales and operations Mark Hewitt said the disappearance of first homebuyers was largely because first homebuyer grants were withdrawn in both states, except for new housing. 

Hewitt added that confidence remained an issue. “It’s pretty well established that despite strong employment levels, low interest rates and greater savings, many people simply don’t feel sufficiently confident in our economy to buy their first home, upgrade or invest,” he said.

Hewitt urged that more needed to be done to encourage younger people into buying their first home.” “As we enter a new year, the mortgage market is in need of two dynamics: more competition and greater consumer confidence.

"It is still the case that just four institutions account for nearly nine out of every 10 mortgages arranged in Australia. That level of concentration doesn’t serve consumers well,” he said. 

Meanwhile in WA, first homebuyers comprised 23.2% of all new home loans in December, while investors took up 30.5% of mortgages. Hewitt attributed this to strong migration, escalating rents, improving property values and low interest rates encouraging people into the WA property market.

Top Suburbs : artarmon , redcliffe , lalor park , spearwood , marrickville

go back
Comments
  • Troy says on 18/01/2013 06:42:37 AM

    Its not about confidence. First home buyers don't appreciate being pushed to buy a new home instead of an existing one. they should rename them builders grants as opposed to first home owners grants

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the best rate available, but also have the correct loan features for your needs.

Why not let us help?

Simply complete the form below, and let one of our experienced advisors assist you. There is no charge for this service.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here