The number of first home buyers ‘rentvesting’ their way into the property market is escalating... Aussies set to switch from building to renovations...
Rentvesting FHBs on the rise, says buyer's agent
The number of first home buyers ‘rentvesting’ their way into the property market is escalating, according to an online buyer’s agency.
Since 2014, the number of first home owners who are buying through property agency iBuyNew to invest has increased by 188%. iBuyNew CEO Mark Mendel toldAustralian Broker first home buyers are increasingly looking to buy in suburbs in greater Western Sydney or interstate while they rent in inner Sydney.
“[First home buyers] are typically looking outside of where they would ideally like to live. They are looking to buy a two bedroom apartment in Penrith or Liverpool or Campbelltown, or they are looking interstate in Melbourne or Brisbane,” Mendel told MPA's sister publication, Australian Broker.
When asked whether the most recent cash rate cut to 1.5% – which saw auction clearance rates to hit their highest level in a year over the weekend – would make it more difficult to first home buyers, Mendel said it is unlikely to have much of an effect on this segment of the market.
Aussies set to switch from building to renovations
New home building is set to fall away in coming years as Australians turn their focus to renovations according to forecasts from the Housing Industry Association (HIA).
According to the HIA’s latest National Outlook forecast, the current construction cycle is set to slow after peaking this year which will coincide with growth in the renovation sector.
“The current new home building boom is unlike any other that has come before it. It is the longest and largest in Australia’s history and has provided an unprecedented economic boost to the nation, without which domestic demand would be in or close to recession,” HIA chief economist Harley Dale said.
“This cycle is marked by substantial regional divergences in the levels of activity in various markets around the country; and the mix of dwelling types being built has changed dramatically. As the down cycle in new home building unfolds, the record pipeline of medium/high density dwellings in particular creates considerable uncertainty as to the timing and magnitude of the decline in construction,” Dr Dale said.
(Your Investment Property)
The number of first home buyers ‘rentvesting’ their way into the property market is escalating, according to an online buyer’s agency.
Since 2014, the number of first home owners who are buying through property agency iBuyNew to invest has increased by 188%. iBuyNew CEO Mark Mendel toldAustralian Broker first home buyers are increasingly looking to buy in suburbs in greater Western Sydney or interstate while they rent in inner Sydney.
“[First home buyers] are typically looking outside of where they would ideally like to live. They are looking to buy a two bedroom apartment in Penrith or Liverpool or Campbelltown, or they are looking interstate in Melbourne or Brisbane,” Mendel told MPA's sister publication, Australian Broker.
When asked whether the most recent cash rate cut to 1.5% – which saw auction clearance rates to hit their highest level in a year over the weekend – would make it more difficult to first home buyers, Mendel said it is unlikely to have much of an effect on this segment of the market.
Aussies set to switch from building to renovations
New home building is set to fall away in coming years as Australians turn their focus to renovations according to forecasts from the Housing Industry Association (HIA).
According to the HIA’s latest National Outlook forecast, the current construction cycle is set to slow after peaking this year which will coincide with growth in the renovation sector.
“The current new home building boom is unlike any other that has come before it. It is the longest and largest in Australia’s history and has provided an unprecedented economic boost to the nation, without which domestic demand would be in or close to recession,” HIA chief economist Harley Dale said.
“This cycle is marked by substantial regional divergences in the levels of activity in various markets around the country; and the mix of dwelling types being built has changed dramatically. As the down cycle in new home building unfolds, the record pipeline of medium/high density dwellings in particular creates considerable uncertainty as to the timing and magnitude of the decline in construction,” Dr Dale said.
(Your Investment Property)
