The Crisis for the First Home Buyer

By Bailey Compton 15 Dec 2023

 

I don’t know how many times we have heard about a property crisis in Sydney. We heard that, young people are unable to get into the marketplace. This ain’t new! In 1987 when I purchased my first property, the same discussion was in the paper. I bought in Newcastle!

Some of us chose to buy in markets which are more viable and provide a lower entry point. There are others who chose to go somewhere else in Sydney to purchase a property other than their chosen place of abode. The people today, only wish to purchase a property in a place that they choose. The crisis is not within the marketplace, but it’s within the psychology of society.

We’ve had clients purchasing properties throughout this year. One bought a 2-bedroom apartment in the centre of Parramatta, right across from Parramatta Park, for $493,000. This is a 2-bedroom apartment which is in a building with no defects. We have a first home buyer who purchased a property for $460,000, which did have defects. When dealing with the defects, we were able to identify that she was probably purchasing a property $30,000 below the market value. There are deals!

We note both of these are in the Western suburbs – God forbid! Nonetheless, they were still really good purchase prices in Sydney. You can still go to places like Surry Hills to purchase a unit for $800,000. A buyer’s agent on our CPD on Tuesday advised that he had undertaken some studies and found out around 30,000 properties in NSW were below $600,000. They are available!

Yes, if you wish to live in the better part of any city, the entry point is high. This does not however mean that it is impossible to find value to enter the marketplace. Moreover, with the work from home policies in place across the country, where you live is not as important for work as it used to be. Alternatively, there’s always the opportunity to buy where there is value, and live where you value.

The crisis in the property market has been excited by the press. It is also a political play by the government to allow for other outcomes. Or maybe a government’s means of covering up their blame in the affordable housing market. If a person wants, there is value for money in the Sydney market and people should not be avoiding it. Apartments are cheap at the moment, and do promise capital gain.

The crisis is now on the decision not the facts!