We can all agree that 2020 has been the year of the unknown and unexpected. However, for home buyers, there is one thing that is certain; the next few months are your last chance to grab a bargain before the cost of new homes jumps significantly in January 2021.
If you are looking to buy a house and land package, it’s well worth understanding the financial incentives and other considerations that will save you thousands during the final months of 2020.
Bid farewell to the Home Builder grant
From the stroke of midnight on 31 December, your new house and land package will cost you at least $25k more, as the Queensland Government closes the doors on the HomeBuilder grant.
Signing the contract on your new property before 31 December (and ensuring the build commences within three months of signing) will secure you the grant, provided you meet the eligibility criteria.
When building your dream home, a free $25k is nothing to sneeze at, so contact a reputable property group like Insignia Homes today to ensure everything is in order before the December cut off.
Post-pandemic property market growth
Despite early predictions of doom and gloom for our property market, the fallout from COVID-19 has been surprisingly small. While many expected prices to plummet, experts now anticipate price falls to bottom out early then make a speedy recovery in 2021.
In Brisbane and South-East Queensland, where prices have remained steady, this means experts believe prices are only going up from here (outside of a significant second-wave outbreak in the state).
According to the Commonwealth Bank, the recent low mortgage interest rates are contributing to the stability, as mortgagors can afford to apply for larger loans and offer more on properties, helping to maintain (and potentially increase) property prices.
First home buyers are also helping to bolster the market, as they take advantage of the Government’s many incentives.
Further down the line, Australia’s handling of the COVID-19 situation means many international buyers will be looking to enter the market and enjoy our stable economy and “safe” environment.
The moral is, don’t hold out for prices to fall on the back of COVID-19. When it comes to property, we are on track for “onwards and upwards” in Australia.
Interest rate hikes on the horizon
Early indications suggest that rising property prices may also be joined by increasing interest rates, which will result in you paying even more for your home.
A recent survey of economists found the majority anticipate variable rates to rise before 2021, despite the Reserve Bank indicating it will hold steady for some time.
Remember, even the slightest increase in rates can significantly impact your wallet over the duration of your loan term, so although starting a mortgage on a low interest rate will save you initially, it’s important to borrow within reason and include some buffer in your budget to comfortably ride out any future increases.
Acting quickly will give you the best chance to secure a low-interest loan and get ahead faster.
Now is the time
All in all, 2021 may see some significant property market changes in the light of our current circumstances. Couple the predicted market strength with the loss of your $25k cash grant and it’s clear 2020 is as good a time as any to jump into the property market and take advantage of the low interest rates and government incentives.
To learn more about the package options and locations available to you, contact the team at Insignia Homes today for an obligation-free discussion. If you like what you see, sign your contract before 31 December 2020 and you will be at least $25k better off. Now is the time to make your move towards a brand new home.
