First-home buyer ‘comeback’ as young Aussies find new ways to enter booming property market

More first-home buyers are set to enter the property market as the Reserve Bank of Australia’s (RBA) recent interest rate cuts and expanded government schemes put more homes within reach. Experts say buyers are “no longer waiting on the sidelines”, with many finding new ways to enter the market.

Bethany Townsend is hoping to buy her first property early next year using the government’s 5 per cent Home Guarantee Scheme. The psychologist, in her 30s, told Yahoo Finance she had moved back home with her parents on the Gold Coast to help save up a deposit.

“If you’re lucky enough to have that chance, it’s always really beneficial,” Townsend said.

“I moved back in July last year.”

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Townsend said she was lucky to be living back at home rent-free, while covering the cost of her own groceries.

She was previously spending $500 a week on rent and shared she was now able to save this amount, plus more, by living at home.

She plans to relocate to Melbourne in November, where she was based previously. She’s working towards a $400,000 budget for an apartment in Melbourne’s south-east.

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New research from Resolve Finance found first-home buyer demand was rebounding, despite soaring rents and increasing property prices.

Its survey of more than 1,000 renters found 57 per cent were planning to buy their first home or investment property in the next two years, up from 42 per cent last year.

Resolve Finance managing director Don Crellin said we were seeing a first-home buyer “comeback”.

“Many Australians, particularly younger buyers, are no longer waiting on the sidelines,” he said.

“Instead, they are finding new ways to enter the market, from purchasing with family or buying an investment property first, to using government assistance.”

Savings were the most common way to fund a deposit (82 per cent), followed by government grants and schemes (36 per cent) and family support (15 per cent).

While cash gifts are a common form of family support, living at home rent-free, loans and going guarantor are also popular options.

A recent PropTrack CommBank First-Home Buyer Report found that despite challenging market conditions, there were more first-home buyers in the past year than was typical during the 2010s.