Is 2023 the Year for First Home Buyers?

Given the climate of the current market, many have understandable concerns. We have seen the property market experience major changes following years of pandemic life. With the reality of post-lockdown life shining upon us, it has raised questions on whether 2023 is the year to dive into home ownership. 

 Although 2023 presents an opportunity for first-time home buyers to purchase homes with less competition and lower prices than during the peak of the 2020-21 housing boom, the current economic climate presents challenges.  

Inflation has caused the cost of living to skyrocket, while rising interest rates have reduced borrowing capacity for many potential buyers. As a result, many first-time home buyers are understandably cautious about entering the housing market. 

Luckily, there are numerous government schemes and grants available for first-time home buyers that many are unaware of. 

The Help To Buy scheme, available from July 2023, is a shared equity scheme wherein the government contributes up to 40 per cent of the property price for a new home and up to 30 per cent for an existing property. Participants don’t need to pay Lenders Mortgage Insurance and only need to lay down a two per cent deposit.  

The First Home Guarantee scheme allows first time buyers to purchase a home with a deposit as low as five per cent. Through this scheme, the government essentially acts as a mortgage insurer. Similarly, the Regional First Home Buyer Guarantee scheme does the same, but for participants looking to buy in a regional area.  

The Family Home Guarantee scheme assists single parents purchase a family home sooner. Eligible parents can buy or build a home with as little as two per cent of the property value, without needing to pay Lenders Mortgage Insurance. 

It’s important to step into the market with a long-term mindset. Don’t try and make a quick buck; it’s more about how you buy than when you buy. If you buy out of desperation, you will more than likely create issues for yourself down the line.  

Overall, 2023 is looking like a good year to buy property. Do your research, don’t be tempted into overpaying, and remember to only get into the market when it is right for you.