Inner city buyers, get in now!
Don’t sit on your hands until stamp duty changes
At recent open inspections we’re seeing more buyers interacting with our agents. They show all the signs of an interested buyer – measuring out the space, discussing why they liked the property and the changes they would make to personalise the home.
However it soon becomes clear that they aren’t looking to purchase the property themselves. Instead, they are parents inspecting properties on behalf of their children – often a first home buyer – and are going to report back to them with a qualified opinion. With many millennials finding themselves busy with work, they’re increasingly outsourcing the grunt work of the search for their first home to their parents.
Time-poor buyers are changing tact
Millennial buyers are a time-poor generation. That’s why we see their parents at open-for-inspections, and why we’ll receive plenty of emails from a prospective buyer before they even visit the property.
With changes to stamp duty on the horizon for first home buyers, due to come into effect in July, many first timers (and their parents) are taking things more slowly, with the hope of saving a few thousand dollars on stamp duty.
Pick your moment to purchase
While it might be tempting to hold off purchasing in order to save on stamp duty, you might actually be better placed to jump sooner rather than later.
Our teams in the inner-city have reported incredible capital growth in the past year, something first-time buyers in the area should consider when deciding when to purchase a property. In Parkville, homes have seen capital growth increase by nearly 43% in the past 12 months; in Windsor the figure stands at just under 40%, and in Abbotsford it’s around 33%.
With capital growth strong and median house prices continuing to rise, the long term benefits of having a foot on the property ladder is likely to outweigh the money saved on stamp duty. Plus, when the influx of first-time buyers hits the market in July, you’ll avoid the competition and be in a much better position.