With soaring property prices and the cost-of-living crisis, the dream of homeownership seems increasingly out of reach for many first-time buyers. However, new government incentives and a cooling market could create a window of opportunity in 2025.
The path to owning a first home in 2025 is predicted to be challenging, with high property prices on one side and rising living costs on the other. However, experts say that a rare opportunity could emerge for buyers willing to compromise and strategize, thanks to new government incentives and a cooling market – at least for now. New government initiatives like the federal government’s Help to Buy shared equity scheme and the low-deposit First Home Guarantee offer a glimmer of hope.
This reprieve might be temporary, as interest rate cuts anticipated in the second quarter could reignite price growth, leaving first-time buyers facing innovative approaches to enter the market. Trends like rent-vesting, where buyers purchase a property in an affordable area while continuing to rent closer to work or family, are gaining popularity. Meanwhile, the “bank of mum and dad” is becoming increasingly important, with parents and grandparents assisting younger Australians. Dr. Nicola Powell, Domain’s chief of research and economics, emphasizes that accessibility and affordability will remain significant obstacles for first-home buyers. She believes 2025 could be a turning point, as housing is expected to be a central issue in the upcoming federal election. Powell suggests that first-home buyers familiarize themselves with existing and upcoming incentives, as they could be crucial. She also advises buyers to be flexible and consider what compromises they are willing to make, such as having one fewer bedroom
First-Home Buyers Housing Market Property Prices Government Incentives Affordability
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