Housing Demand 2019!

According to respected property commentator and analyst Michael Matusik, first home buyers and downsizers will be the key drivers in demand for housing this year. These two market segments are looking for certain features in property.

What are first home buyers looking for?

Most first home buyers KEY driver is affordability; bank lending is tightening up and house prices, despite the current fall in some capital cities, have risen to a level that can make it challenging to enter the market.

Also, first home buyers aren’t afraid to buy a home that needs improving – in fact, four out of five first home buyers purchase an older established home. This can often turn out to be a very savvy decision as they can renovate and value-add over time whilst building equity in their home. They generally have youth on their side, so aren’t afraid of the effort involved in the transformation; and the plethora of renovation shows that are televised regularly has really made this type of makeover seem achievable for the average person.

Possibility of expansion is also attractive, as the couple’s circumstances change and their family grows, a home that can be extended (subject to local council approval), can also be a deal-sealer; this is tightly linked to the above sentiment about improving.

Suitability for tenants – that is, due to affordability issues, it is increasingly popular for the new owners to rent out a room (or two) to help pay off the mortgage. A home that can accommodate this scenario is also generally more appealing for this reason.

What are downsizers looking for?

Downsizing is a massive phenomenon, as people are living longer and working longer, there is an increase aim by this sector of the market to simplify their life with less maintenance, as well as unlocking the equity in their larger family home…some of them may have lived here for decades.

Low maintenance – this is the key driver of downsizing, embracing effortless living – more time to travel and less time for chores. For this reason, many choose new homes on smaller blocks, or apartments.

Convenience – whilst first home buyers don’t always have the luxury of choosing their ideal location, many downsizers are in a position to do so, and easy access and close proximity to amenities is important in the decision-making process.

Value for Money – the rule of thumb, generally is that they need at least a 20% ‘jingle’ in their pocket between the sale of their existing home and the price of their downsized abode.

Other factors such as parking and storage, space for visitors and grandchildren, are other factors in their decision-making process.