First-home buyers attracted back to the South Australian market bucking national trend
SOUTH Australia is driving the first-home buyer market bucking a national downward trend, research shows.
Across the country there has been a decrease in the number of first-home buyers of 11.6 per cent but SA has seen the number of people entering the jump by 16.3 per cent to 7369 last financial year, according to the Bankwest First Time Buyer deposit report.
Bankwest head of specialist banking Ian Rakhit said Adelaide’s real estate market represents great value-for-money.
“Considering Adelaide was recently named the word’s fifth most livable city by the Economist Intelligence Unit, it could be argued that property prices in Adelaide offer considerably good value for first-home buyers,” he said.
“Certainly, today’s low interest rates make home loans more serviceable for young homeowners.
“But for most, saving a deposit for their first home remains the biggest challenge.”
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A separate study from HomeStart, which provides low deposit home loans in SA, revealed Adelaide’s northern suburbs are the most popular area for first-home buyers.
Almost 40 per cent of first-home buyers purchased in suburbs to the north of the CBD, with Salisbury, Elizabeth and Munno Para topping the list, its home loan research showed.
Data from the finance company also revealed that Seaford, Campbelltown and St Clair were the most popular suburbs in Adelaide’s south, east and west.
Rozlyn Innes and Alex Demasi recently purchased a home through HomeStart at Salisbury North, and Ms Innes said they were attracted to the area because of the block size.
“I liked the backyard mostly, I grew up with a big backyard, they don’t have big backyards these days and that was a huge factor for us,” she said.
“I liked the location, it’s right next to a high school and a primary school, and there are shops close-by.”
She said first-home buyers need to drop their expectations for their first home and buy something with the idea of moving to a bigger home later.
“We have a young family, we expect this house to last for 10 or 15 years maximum and then move on,” she said.
HomeStart chief executive officer John Oliver said the figures show first-home buyers are increasingly seeking out city fringe areas.
“Adelaide’s northern suburbs provide great conditions for first-home buyer activity with an abundance of affordable housing and cheaper land,” he said.
“Buying in these suburbs means first-home buyers don’t have to make as many compromises on the types of features they want in a home, making them ideal for young couples and growing families.”
Professionals chief executive officer Ted Piteo said it is essential for first-home buyers to be purchasing property as it affects the whole market.
“If the first-home buyers aren’t in there, that ripple effect will effect the whole market, those guys that have the first-home buyer houses at the moment won’t be able to sell to buy their second home,” he said.
“From a government perspective there should be a reduction in stamp duty like some of the other states do is really critical to help them get in.”
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