NSW First-Home Buyer Activity To Surge In NSW

the phase 3 FOMO logic kicks in...

These FHB have been sitting on the sideline watching for sometime.

Over the last few years, I come across few work colleagues who are all FHB
Colleague 1: purchased in 2014 in Blacktown. Would made 250k gain. Though I also cautioned him then price price already gone up (see I didnt have the crystal ball then)
Colleague 2 and 3: sitting in the side for some time, purchased Sydney West early this year
Colleague 4: paid deposit for a OTP townhouse in Schofields to be completed next year.
Colleague 5: still sitting on his hands doing nothing...but interested in signals.

All colleagues 1 to 5 have been asking when is the best time to buy, where to buy. They are all FHB (though not necessary living in the property they purchased) and all have a FOMO face mask on them..

How often do you come across these people at work, despite you continue telling them Sydney may be overvalued...

 

How many phases are there?

 

He thinks we could see the price floor rise as it has in the past with the first home buyers grants.

This is spot on.

 

I do also remember reading somewhere the Federal government is considering to give access to super to FHB.

If that is then combined with what they are doing in NSW, the units and town houses will sell like hot cakes and that only means the value of land will push higher due to more demand.

I am seeing more and more, at least in the areas that I have closely monitored, there is less houses with land for sale than there was a couple of years ago.

The selling stock in Sydney is not as high as it used to be.

 

I'm already receiving a much higher enquiry rate from FHBs since the announcement was made. Each client has enough saved for the deposit and LMI but not the stamps, so now they're ready to jump in.
Like a previous poster mentioned, serviceability isn't the problem for any of these people, it's the deposit.
There are heaps of properties in western Sydney under 650k. Townhouses in the surrounding suburbs of Parramatta, houses another 15-20km out and smaller units closer to the city.

 

I have a feeling this is just going to cause lower end houses to just continue to grow in value especially in the west (Past Parramatta and towards Penrith). Not complaining as I'll be making money but not 100% sure this was the best way forward.

Remember those $25k FHOG days. All that did was line the pockets of the real estate agents and the sellers. FHB didnt gain a single thing from that just pushed up prices and bigger debt for them.

 

Yep, I'm seeing this. The next cheapest house I'm selling is 826k in Riverstone after selling five houses between 744-804k in the last couple of weeks. Its certainly been crazy. Only Oran Park left at the 743k+. I wonder whether FHB will be happy to buy there?

 

Loved seeing this as an owner....

 

Yes, fundamental maths do not appear to be a strong point in some of the arguments being made Its one thing to be a little bit out with numbers. small margins of error are to be expected. But to ignore fundamental closing costs is something else. #fakepropertymaths

 

I guess once the sentimental feeling of a 'forever' home is too much for some first home buyers. Maybe it's me, but I generally feel that the first home buyers around me atm are the older type of people that are more cashed up than the time when I bought my first property in my 20s- in their 30s, well established careers, higher salaries, higher saved up deposits and etc. Btw this is a general comment only.