Increasing upward pressure on rents, scarcity of rental housing and falling interest rates have many would be renters opting to buy, especially first home buyers according to RE/MAX WA Regional Owner, Geoff Baldwin.
“An analysis of our sales since the beginning of February show a steady increase in first home owner activity with them accounting for around 19% of total results up from 12% in January”, he said.
“Although our overall sales results are up by around 42% over the past 3 months first home owner sales have been leading the push with an almost 60% rise.
“In speaking with buyers it seems that many of them have done their sums and have decided that the repayments on say a $400,000 home after a 5% deposit are around the same as the average rent for similar home.
“The biggest challenge for some renters is that of raising an up front deposit but with the first home owner grant and state government stamp duty concessions, etc, more and more of them are working hard to find the funds.
“We are also finding that a lot of people simply don’t think the opportunity to buy a home of their own is open to them and it is not until they sit down with a good agent or a broker that they are surprised how possible it can be.
“With up to 40 parties turning up to compete for rental properties that are becoming harder and harder to find and with rents going through the roof, an increasing number of prospective renters are now doing there homework on the buying option” Mr Baldwin said.