How hopeful home buyers are making the most of the current climate
- Pinnacle Choice
- Jul 30, 2020
- 2 min read
While the COVID-19 pandemic continues to disrupt property markets across the country, none more so than in Victoria, industry experts are reporting a wave of activity from first-home buyers spurred on by increased government support. “First-home buyers are out in force,” says Antony Bucello, director of National Property Buyers. “Some people can really take advantage of some really good incentives put in place by government organisations.”
Victorian first-home buyers pay no stamp duty on homes priced at $600,000 or less and a reduced fee on properties priced between $600,000 and $750,000. They may also be eligible for the $10,000 First Home Owner grant when buying or building their first new home. This grant is doubled for new homes built in regional Victoria until June 30, 2021. Throw in the recently announced HomeBuilder program which will deliver grants of $25,000 to eligible parties building a new home, and it’s little wonder there’s good activity in this sector.
“There are no shortage of buyers at that level going through well-located, well-presented properties,” says Bucello, who reports properties within 15 kilometres of the CBD and close to rail transport are at the top of the first-home buyers’ wishlist. Bucello says investors are largely sitting on the sidelines, with only a few exceptions in the sub-$700,000 price bracket.
Managing director for CBRE Residential Projects Andrew Leoncelli agrees investors are playing it safe, adding that mid-market owner-occupiers are also being cautious. “These are people who are worried about their jobs and waiting to see what happens with the COVID outbreaks in Victoria,” he says. “I think conditions will remain difficult and patchy while COVID continues and we’ll be relying on government stimulus to keep the economy going through the second half of this year.”
Bucello sees opportunities in the current market for upgraders, with a correction of around 10 per cent in the $2 million-plus price bracket, and Leoncelli says he’s been fielding inquiries from “more mature buyers” who are comfortable in their financial position and ready to either downsize or make a lifestyle change.
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