Mention the term ‘typical first home buyer’ to your average Australian and the chances are they will immediately picture a young couple struggling to raise a large enough deposit to get their foot in the door of the property market.
Indeed, we’ve all read stories recently about how many first home buyers are relying on the assistance of their parents and other relatives in order to make the leap into the market.
However, some figures from the State Revenue Office that were published in the Murdoch press recently paint a very different picture of the first home buyers in our State.
For example, during the period from July 2018 to February 2019, the data showed that there were almost exactly as many first home buyers aged 40-plus as there were aged under 25. Indeed, there were more than 280 first home buyers during that eight-month period aged over 60!
Here’s a break down of the total numbers of people during that period that claimed first home buyer stamp duty concessions or exemptions:
Under 20: 181
Aged 20-24: 3055
Aged 25-29: 6867
Aged 30-34: 5744
Aged 35-39: 3164
Aged 40-44: 1496
Aged 45-49: 798
Aged 50-54: 402
Aged 55-59: 255
Over 60: 286
Whilst newer housing estates on the metropolitan fringe are considered a hot spot for many first home buyers, first time buyers have remained active in the Melbourne market for most of the past year in many Melbourne suburbs. Some agents we have spoken to have been commenting that first-home buyers aged over 40 have become an active participant in some areas where younger first timers have often been scarce.
Who knows, with property affordability improving over the past year as the overall market has experienced a slight correction, we may see even more activity from older first home buyers who had previously given up the search while prices rose strongly.
The changing face of the first home market is particularly relevant for anyone selling a property that might fit within a first home buyer’s budget. So if you are considering selling, and want some advice on the best way to market your property to this market segment, feel free to give our friendly Customer Service team a call on 1300 400 400.
Of course, you’ll also find lots of helpful advice on how to achieve the right result when you sell in our free booklet, “Fatal Real Estate Traps Exposed”, so why not download a copy while you’re here?