There is no doubt that COVID and the resulting disruption and uncertainty it has created in our lives has influenced the way many of us view our lives, our work, our spending patterns and even our future goals and aspirations. Think outside the square and consider your options!
Major Changes in Home Buying Trends - by Mark Lewis
There is no doubt that COVID and the resulting disruption and uncertainty it has created in our lives has influenced the way many of us view our lives, our work, our spending patterns and even our future goals and aspirations.
Lockdowns, restrictions, working from home, vaccinations, check-in’s and even toilet paper wars, have made many businesses and workers rethink how we work, where we work and even when we work.
Additionally, the COVID property boom has put the aspirations of home ownership out of reach for many, particularly younger first home buyers.
However, two of the big banks have separately released reports that suggest a dynamic shift in how and where people, particularly younger people, will choose to live in the future.
Firstly, a report released from CBA suggests that more and more young people will eschew the traditional 'bank of mum and dad' to assist them to buy their first home and instead band together with their friends. Whilst this idea may not be the best one for those looking to live in the home, it may be a solution worth exploring for those looking to get into home ownership via an investment property.
Of course, this strategy has potential downsides, particularly down the track if priorities, friendships or financial circumstances of one or more of the parties to the property changes. So it pays to seek good advice before embarking on a strategy such as this.
Secondly, another report released by NAB suggests that home buyers are now factoring in a home working/studying area and living in the regions where they are conducting their property buying research. The study revealed that people were moving away from cities to regional areas with good amenities, schools, lifestyles and more importantly better affordability.
This points to a permanent change in working arrangements where businesses and employees accept that working from home, with maybe an occasional commute to the office is here to stay.
Regional towns which offer a great lifestyle (whether that’s sea or tree change), within a two hour commute from the major cities and better housing affordability are going to be the big winners here.
Buying in the regions can be a little more tricky, particularly with acreage properties. Some lenders require larger deposits, some have more stringent criteria and some won’t lend on these properties at all.
So if you are thinking about a sea or tree change, make sure you do your research on the area or region and seek professional lending advice as well as legal advice before taking the leap.
Call us today to speak to an experienced Bernie Lewis Home Loans mortgage broker on 8300 8300 or email firstname.lastname@example.org