Queensland is now ground zero in the battle for affordable property between first home buyers and investors, amid fears many will miss out with the odds skewed in favour of landlords.
This as the 2024 Rising Stars report by Canstar and hotspotting’s Terry Ryder predicted Brisbane would become Australia’s top property market performer this year, driven by buyer demand, continued uplift in prices in most suburbs, low vacancy rates, strong rent rises and massive infrastructure spends in the lead-up to the Olympics.
“The competition between first home buyers and investors is reminiscent of 2021 when it made buying into the housing market so uncomfortable for first timers.”
Investors and first home buyers are running neck and neck growth wise –with latest Australian Bureau of Statistics figures show lending up more than 20 per cent for both annually – but clearly weighted in favour of landlords ($9.53B in home loans in February) compared to first timers $4.93B.
“Rising prices drive activity from both investors and first home buyers, the former looking to maximise capital growth and the latter to establish a foothold in home ownership while they can,” he said.
“Looking at all their purchasing options is paramount for first time buyers, including government grants, stamp duty concessions and any family assistance.”
Investors versus Owner Occupiers buying strategies differ as Owner Occupiers have a set criteria for what they want to live in whereas for investors it’s trying to buy a bargain that has the highest return regardless of what type of property it is”.
With investors able to write off costs including fees for agents, many fledgling house hunters are now considering becoming landlords instead of owner-occupiers to get into the market. Owner Occupiers look to buy a home and when once they look at the numbers people will then consider just getting onto an investment ladder, buying something that’s more affordable for them and get it renting.
There are obviously other benefits with that like depreciation and passive income.
The sentiment out there is that rates will go south and there comes a feeling that by making it more affordable for people to get into the market, it will mean more people jumping into the market. A lot of people want to get in ahead of that.
If you can get in, and that purchase is sustainable for you, get in. Property is like any other asset. Timing the market is difficult. It is better to try to only focus on what is in your control. Property is one of the most important asset classes and it does create wealth. Those who (purchase) do grow their wealth faster.
The residential market is dominated by the investors with their spending more than double a first home owner as per the figures below $9.53B in home loans in February compared to first timers $4.93B.
At Positive Income properties we have over 1600 available properties that we can assist you acquire based on your Goals, Aspirations and Budget. We have a team of sales and support people ready to help you with your plans to generate a passive income. Please call or email us to find out more.
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
