What should first home buyers expect in 2017?

Australia Day is over and the Easter eggs are out at the shops. We are well and truly into 2017 now. So what does 2017 have in-store for the property market and first home buyers? We take a look at the matters most important you.


Property prices to rise further?

One of Australia’s leading property research companies (and a recent top predictor of residential property price movements), SQM Research, predicts that most capital city property prices will rise further in 2017. These are SQM Research’s capital city predictions for 2017:

  • Sydney: gain 13.5%
  • Melbourne: gain 12.5%
  • Hobart: gain 9.5%
  • Brisbane: gain 5%
  • Canberra: gain 5%
  • Adelaide: gain 3%
  • Perth: fall 6%
  • Darwin: fall 7%

To see the full predictions visit SQM Research.


Interest rates to rise?

According to the betting markets, interest rates are slightly more favourite to rise than fall next time it changes. Although the timing of change is difficult to say.

FHBA co-founder Daniel Cohen said first home buyers you should always budget for potential interest rate increases, regardless of forecasts. “When you get your first home loan, you want to get the best deal available to you at the time. But you want to make sure that if interest rates are to rise, you can still afford repayments”.

Fellow FHBA co-founder Taj Singh said there are alternative strategies for first home buyers to consider if they think interest rates will rise. “You can fix your home loan, or part of your home loan, at a certain interest rate for a period time. You are best to speak to a Mortgage Broker when you have saved your deposit as they can show you various options for you to consider”.


Grant Changes

On January 1 2017 there were several changes to first home buyer incentives including the Western Australia First Home Owners Grant (FHOG) (if you missed those changes see a summary here). But will there be further changes in 2017?

On July 1 2017 the following grant changes will occur:

  • The Queensland FHOG will reduce to $15,000 for all eligible first home buyers
  • The Tasmania FHOG will return to $10,000 for all eligible first home buyers

On January 1 2018 the Western Australia FHOG will reduce from $15,000 to $10,000.

No other changes have been announced, however as housing affordability continues to be a big society and political issue we wouldn’t be surprised if there were more changes yet.

Stay tuned to FHBA News in 2017 where we will post any changes announced.

To see the current First Home Owners Grant in your state visit the FHBA Grants Hub.


What’s your new years resolution?

Buying property is usually a long term goal. It can take many years to achieve this goal. At the start of the new year people often use the new year as a time where they can reset their goals.

As property is a long term goal, it is a good idea to further break down this goal based on your current circumstances. We recently created a special 3 part series, which is part designed to assist people with their different property goals.

What’s your current property goal?


Good luck to all first home buyers in 2017

There is no doubts that owning your first home can be daunting and challenging. After all, your first home is usually your biggest asset you will own at the current stage of your life. Regardless of whether you are a client of FHBA or not, as Australia’s leading first home buyer organisation we wish all aspiring first home buyers success in 2017. If you have any questions along your journey contact us – we are here to help, every step of the way.

Happy house hunting!

Recommended Posts
First Home Buyers Australia - FHBA


Sign up to our Savers Club:







Sign up to our Buyers Club: