Changes to the buying process rather than access to more funding is the key to helping first home buyers according to industry specialist, Debra Beck-Mewing.
“The Government is not looking at solid and immediate help they can provide first time buyers because they’re running down the same old track of thinking the answer can be fixed with ‘funding’”, said Beck-Mewing, Chief Property Strategist at The Property Frontline.
The Federal Government has recently announced a Senate Inquiry into how lending and financial regulation impacts home ownership and to explore ways to reduce lending costs.
“It’s great to see more housing support coming for struggling home buyers, but if the Government really wants to help they need to make structural changes to the buying process so first time buyers have a chance of getting into the market”.
“The market is running fast in most areas of Australia, making the process of buying a home almost impossible to navigate successfully even for experienced buyers, let alone those trying to do this for the first time.
There’s currently more than 18 different avenues of grants, stamp duty exemptions, and support packages available Australia-wide and yet first time buyers or those in hardship are still the smallest active buying group.
“What first time buyers need is a change to the buying process because the system is currently weighted towards giving power to sellers. Suggested changes include :
- making building and strata reports mandatory for sellers to provide
- more detail in contracts Australia-wide
- longer mandatory cooling periods
- set standards of legal advice to be provided to buyers.
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“The Government should also consider providing buyers with access to independent advice and support so they can increase their decision making and negotiation power, otherwise all they’re doing is creating more confusion and driving prices up,” said Beck-Mewing.
“Any active buyer will tell you there’s much more to buying successfully than just access to money, so it’s time the Government tackles these process adjustments and ensures all new buyer schemes include an allocation to receive independent assistance, or for the Government to offer this kind of support as a component of the funding.
The latest ABS data shows the number of first home buyers remaining low, hovering between 8,500 and 9,500 buyers per month – well below the peak of nearly 18,000 achieved in 2022.
“Buying property is always a challenge but the current market is moving fast, so buyers need to be well informed to take advantage of the support packages on offer.
“We’re seeing an increase in the number of first time buyers coming to us for help. Many buyers are overwhelmed just trying to understand the nuances of the different options available and struggling to select which option is best for them.
“They’re also worried about making sure they don’t mix up any of the regulations for fear of generating a massive tax bill or having to repay grants.
When they finally have their approval, buyers are then stuck with trying to navigate their way through the buying process including
- Figuring out how to find good value
- Avoiding paying too much for a property
- Identifying critical problems with a property that will cost thousands to fix
- Resisting agent pressures that lead to poor decision making
“First time buyers are making the most expensive purchase of their life, and they’re expected to do it without any independent and qualified support – no wonder their ability to purchase is hampered.
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About the author
Debra Beck-Mewing is the Editor of the Property Portfolio Magazine and CEO of The Property Frontline. She has more than 20 years’ experience in buying property Australia-wide and has extensive experience in helping buyers use a range of strategies including renovating, granny flats, sub-division and development. Debra is a skilled property strategist, and a master in identifying tailored opportunities, homes and sourcing properties that have multiple uses. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, and participates on numerous committees including the Property Owners’ Association.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.
