‘Bloodbath’: Buyers set for battle
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.
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.
Canstar’s finance expert Steve Mickebecker warned first home buyers were in for “a rollercoaster ride with FOMO now driving the segment amid rising property prices”.
“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 ABS figures showing lending up more than 20 per cent for both annually – but clearly weighted in favour of landlords ($9.53bn in home loans in February) compared with first timers $4.93bn.
“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.”
Buyers agent Eddie Dilleen of Dilleen Property – who personally owns 100 homes – said owner occupier calls for help were rising. “There have been more people saying ‘can you help with that’ in the last few months but that’s not our specialty. They have a set criteria for what they want to live in whereas for us it’s trying to buy a bargain that has the highest return regardless of what type of property it is.”
Mr Dilleen’s top two tips for first homebuyers in the current market were to prioritise finance readiness and make enquiries with agents to be first to properties before they go on the market. “Because the moment it goes online, it’s just a bloodbath, everyone’s fighting over it and the agent is just getting calls and calls and not answering the phone half the time because they’ve got 100 enquiries.”
Buyers agent and Aus Property Professionals founder Lloyd Edge, who owns 18 properties, said it was a growing trend for many buyers to become investors to cope with increased prices.