Western Australia and Queensland show promise for first home buyers

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Western Australian and Queensland have the most active first home buyers in the country, while rising prices continue to stump buyers in New South Wales.

According to home loan approval data released by Mortgage Choice, buyers in Western Australian and Queensland accounted for almost one in five loans written throughout February.

In contrast, first home buyers in New South Wales accounted for less than one in 20.

Mortgage Choice spokesperson Jessica Darnbrough said high median dwelling prices in New South Wales were preventing first home buyers from entering the market.

“This is largely unsurprising when you consider that the state’s capital, Sydney, boasts the country’s highest median dwelling price,” she said.

“In addition, New South Wales no longer offers grants or stamp duty concessions to those first home buyers purchasing an established property.”

States like Queensland were seeing healthy first home buyer activity due to stamp duty concessions for those looking to purchase an established property.
“Our research shows more than 70% of first home buyers who purchased their property within the last two years bought an established dwelling. As such, it isn’t surprising to see first home buyer participation stronger in the states that not only offer concessions or grants.”

First home buyers in New South Wales accounted for just 3.85% of all loans written in February, while Western Australian and Queensland showed participation rates of 19.57% and 17.00% respectively.

“On average, our data shows first home buyers account for just over 12% of all loans written – down from 16% in 2014.”

Victoria was the only state showing an increase from 2014, with first home buyer’s accounting for 16.99% of loans written. 

Table: New home loan approval data – February 2015

  National NSW VIC SA QLD WA
2015 12.42% 3.85% 16.99% 4.68% 17.00% 19.57%
2014 15.76% 5.42% 13.70% 15.89% 19.51% 24.29%

Source: Mortgage Choice

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  • Infowars says on 12/03/2015 11:24:40 PM

    That's a disgusting display of greed and short sightedness by sellers and agents....who sell out to foreign investors for a short term gain.....not realising that there children will be struggling with the mess that greed has made for them.
    Ignorance by buyers accounts to the other half by taking out foolish over capitalisation mortgages..... I can't wait for the downturn to begin..... I'll be waiting with my realistic offers and have the last laugh..... Did someone say divorce...financial hardship...raising interest rates?

  • Robert says on 17/03/2015 05:59:09 PM

    I am not an expert of this but I have learned that it's good to do it by your self than looking for a sells agent. That's what I learned when I joined the seminar.

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