This year most people were glad to see the back of 2016. So far, 2017 seems to be a highly positive year in the home building industry, particularly with renewed incentive in the First Home Owners Grant, spiking an overall boost in confidence in the market place. With a solid increase in trade and land availability, fantastic purchasing terms and renewed confidence in the WA resource industry, there are positive reasons why now is a good time to build if your thinking of entering the property market.
See our 10 reasons why 2017 is a good time to buy a new home.
1. The last quarter of 2016 showed some positive signs.
With positive reinforcement for the WA housing industry at the back end of 2016, the HIFG (Housing Industry Forecast Group) expects a pick-up in 2017-18, with a further strengthening in 2018-19 and 2019-20. With interest rates declining and numerous grants increasing, this onset of positivity sparked an uprising of the housing market throughout Australia, and particularly WA, with affordability for first and second home buyers increasing with confidence.
2. The increase in the First Home Owners Grant (FHOG) to $15,000 means more activity in the first home buyers market as it’s a stimulus measure.
The Government, Opposition and building industry welcomed the announcement of the $5,000 boost to the First Home Owners Grant for 2017. The positive nature of this change encourages activity in the housing market, providing an extra boost to First Home Buyers wishing to get a home of their own.
3. Increases to Keystart lending criteria for couples means more people have access to finance.
In addition to the First Home Owners Grant increase, the Keystart lending criteria has also changed. The metro income limit for Keystart loans has been increased by $20,000 and also came into effect from the beginning of the year. Income eligibility for the Keystart loan scheme has increased from $70,000 to $90,000 for singles, $95,000 to $115,000 combined income for couples and $115,000 to $135,000 for families.
For more information on Keystart lending criteria, visit: www.keystart.com.au
4. Previous increase to the FHOG also signalled the start of a recovery in the market.
The First Home Owners Grant was first introduced into the Australian housing market on July 1st, 2000, in which first home buyers who satisfied the eligibility criteria could receive a $7,000 once off payment towards their new home. The grant has only increased from here, to $10,000 in September 2013 to December 2016, and now to $15,000 for 2017. Source: finance.wa.gov.au
5. The HIA economic report predicts 2018 is the year that the residential housing market is destined for recovery.
The recent Housing Forecast Report produced by the Housing Industry of Australia and based on extensive industry data, has predicted that the residential housing market is destined for recovery in 2018, with positivity set to increase thereafter. The full report can be seen at the HIA website.
6. Current land availability and fantastic terms for purchasing.
Due to the expansion of the Perth housing market, more land has become available throughout the Perth metropolitan area and South West region. This increase ensures that buyers have more options when it comes to their ideal location and can be that extra step closer to their home building dream.
7. Access to modern building techniques means two storey home and land packages are more affordable than ever.
Increased access to an array of modern building techniques ensures both one and two storey house and land packages are more affordable than ever. The innovative technology utilised by Express Living Homes Living ensures you get the best value from your house, using sustainable materials while ensuring your home is both modern and functional.
Learn more about the innovative building technologies used by Express Living Homes.
Two storey homes are now even more affordable for first home buyers in Perth. Pictured: The Hamilton display home.
8. Interest rates continue to be at a low level.
Another great reason to purchase your own home this year is the incredibly low interest rates. With the steady decline of interest rates over the last year, consumer confidence has continued to grow, with the Reserve Bank cutting the official interest rate to a fresh low of only 1.5%.
Many financial experts have agreed that the rates may have further to fall. JP Morgan’s Sally Auld has predicted “that rates will remain on hold at 1.5 per cent this year before being cut twice more in the first half of 2017”.
9. Construction times & quality are better due to availability of trades
The once scarce availability of trades appears to be a fact of the past, encouraging a higher quantity of homes to be built this year. The increase of trades due to the mining industries downturn means homes will be built quicker and material delays will dramatically decrease.
10. Positive outlook for investors and home owners looking to upgrade their lifestyle.
Savvy investors and those looking to trade up to a new home will come into the housing market looking to take advantage of low prices, additionally spiking activity in the exciting and bustling housing industry in WA in 2017.