Is Buying Your First Home In Adelaide A Good Decision?

Professionals Modbury Latest News 26th February, 2021 No Comments
According to many real estate professionals in South Australia, Adelaide’s housing market is experiencing a surge in demand amidst tight supply conditions.
As compared to the rest of Australia, Adelaide is not just a “seller’s market”, it’s also a preferred location for many buyers.
Now is a great time to buy a house in Adelaide and in this article we will share with you some of our top reasons why.
Several factors support this idea that now is a great time to be buying your first house, especially for first home buyers, let’s discuss.

 

Why is now a great time to be buying a house in Adelaide?

REASON 1: AUCTION CLEARANCE RATES

 

It has been touted as the highest in years, which is unusual to see in February. Commonly, autumn is the peak in auction markets.

This scenario indicates demand exceeding supply, thus encouraging people to buy property.

According to CoreLogic’s latest Quarterly Auction Market Review – “Auction clearance rates reached 67.1% on 1,014 auctions held in the three months to December 2020. It was up on the 57.4% clearance rate recorded on 1,385 auctions held in the December 2019 quarter.”

The property market in the next two years is predicted to grow at a steady pace by many industry spectators and experts.

REASON 2: LOW INTEREST RATES

 

According to historical home loan rate averages between 1959 & 2020 (source: RBA Indicator lending rates), the average standard variable rate (owner-occupier), average discounted variable rate (owner-occupier) & average 3-years fixed-rate (owner-occupier) are considerably low, which is great news for buyers.

Many people are  taking action in this low-rate environment to purchase their dream home.

Source: finder.com.au & RBA Indicator lending rates

REASON 3: FIRST HOME BUYER GRANTS

 

The ongoing support for first-time home buyers in Adelaide is another valid reason why buyers are eager to enter the market. Let’s take a closer look at these grants.

  • SA First Home Buyer Grant: Qualified buyers can access the grant of $15,000 from the SA government when building their new home. However, there are specific eligibility criteria to fulfil.

 

  • Home Builder Grant: It is an additional $15,000 from the June Home Builder scheme announcement. It applies to building contracts signed before 31/03/2021.

Overall, it is a fantastic time if you are a 1st home buyer as you can get up to $30,000 in contributions and bonuses.

REASON 4: RENTS ARE OFF-THE-CHARTS

 

A significant increase in weekly rent has been observed in the past three months, whether you are a new tenant or merely renewing your agreement.

In addition to the ongoing government support for first home buyers in SA and the lower interest rate, rising rental prices are sparking a shift from renting to owning as the gap between the cost of renting and owning in some cases may only be quite small.

 

NOW IS A GREAT TIME TO TAKE ACTION

 

If you are contemplating the switch from renting to owning, now is a great time to book a free consultation with one of our team.

With the HomeBuilder Grant closing soon, taking action now could be the difference between owning your own home or continuing to rent.

We’re here to help you with our First Time Buyer Program, even if you are starting from scratch, we have some nice house and land packages waiting for you.

 

Just call Filip directly on 0432 230 298 for a quick chat.