Highlighting the challenges and opportunities for First Home Buyers through Covid-19
- What is Covid-19's impact on the market?
- What are the benefits for first home buyers?
- Can you buy your first home this year?
If your goal for 2020 was to get a foot on the property ladder, you’ve likely faced substantial challenges this year. COVID-19 has altered our lives in many ways and its impact on the housing market has been significant.
While the real estate landscape has stagnated as a result of the pandemic, it’s not all bad news. There are still opportunities for Australian first home buyers to enter the market and take advantage of the opportunities that have presented themselves, such as low interest rates and a reduction in house prices.
COVID-19’s impact on the market
Property values have fallen this year due to the pandemic, and the effect has been felt across the country. Melbourne has been the hardest hit, with statistics from August reporting Melbourne’s property prices as being down 4.6% since March.1
Despite being in the final stretch of 2020, it’s still tricky to gauge the full impact of the pandemic and what it will mean for Australia’s real estate market. Economists are expecting house prices across the country to remain relatively stable for the next six months although Melbourne may experience a drop in the December Quarter.2
With this year’s spring selling season being pushed to the summer, in-person inspections and auctions haven’t been able to go ahead for much of the year due to stage 3 and stage 4 restrictions across Melbourne and Victoria. According to data from the Real Estate Institute of Victoria, there were only 215 auctions scheduled in August, compared to 454 in August 2019.3
Benefits to first home buyers
Fortunately, it’s not all bad news for potential buyers. First home buyers can benefit from the low interest rates which means if you’re able to buy this year you could take advantage of them.
Lower property prices are another plus as they provide opportunities for new buyers to enter the market and there are signs that there could be fewer people seeking to buy investment properties therefore less competition for properties on the market.
Can I buy my first home?
At BankVic our First Home Buyer Package offers a low 3-year fixed rate of 2.15%pa (2.84%pa comparison rate)4 with no establishment fees. Plus we offer a generous 85% Loan to Value Ratio (LVR) meaning you only need a 15% deposit to avoid paying Lenders Mortgage Insurance (LMI).
Buying your first home is an exciting experience but it can also be overwhelming, especially given the changes that have come from the COVID-19 pandemic. Get in touch with us today on 13 63 73 to find out how we can help you work towards securing your first property. Our lending consultants can talk to you over the phone or via video conference.
Terms and conditions: 1.Corelogic.com.au.2.news.com.au 22.09.2020. 3. reiv.com.au. 4 Visit https://www.bankvic.com.au/home-buying/first-home-buying. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Comparison rate for our home loan is based on a new loan for a property purchase secured by a freehold property located within the metropolitan area and associated costs. The rate has been calculated on a loan amount of $150,000 over a term of 25 years. This article was published on 8 October 2020 and the information was current at that time.
Normal lending criteria applies to all loan applications. The information in this article is general in nature and does not take into account your personal situation or needs. Please consider whether it is appropriate for you before acting on this information. Police Financial Services Limited ABN 33 087 651 661 – trading as BankVic AFSL 240293 Australian Credit Licence 240293