More Properties Can Avail FHLDS Now!

Published by Otto Dargan on February 10, 2021

House prices drop, more property available for FHLDS

The pandemic has created a big ruffle in the housing market of Australia – the demand for the properties have taken a plunge with the onset of COVID-19. This decline, in turn, has created opportunities for issuers of FHLDS ( First Home Loan Deposit Scheme ) to buy a cheaper home.

Many past issuers were unable to utilize the scheme’s benefit as their chosen property prices were above the scheme’s threshhold price. However, now, with a drop in property prices, around 1,800 places will be re-issued for consideration. The Minister for Housing announced that these places were selected from the first round of FHLDS

The big impact

The shift in the prices are more prominent in cities like Sydney and Melbourne. This opens the space for house buyers to get subsidies for their new houses, lowering their total home-purchase cost. Contact us at 1300 783 493 or fill this form to find out if you qualify for the scheme or not.

The median value of established properties have seen a drop ever since the onset of Covid 19. In January 2020, around 107 suburbs’ from the capital cities saw a decline in their median values, falling just below the qualifying price cap for FHLDS.

This table shows the change in the median values of the suburbs after the onset of Covid 19. The data has been collected by analysing the difference in median prices between March 2020 and January 2021.

The biggest drop in prices is apparent in suburbs of Sydney and Melbourne. Rousehill witnessed the largest drop in median price from $726,900 to $638,755 between March and January.

The biggest decline in Melbourne was observed in the South East region of Clayton, which saw a drop of $65,579, whereas the median values of the inner cities declined an average of $33,313.

Melbourne has experienced a steep drop not only in property prices, but also in rent with the onset of the pandemic. This could be attributed to its high exposure to international students and migrants. The pandemic affected a big restriction to these groups, causing a direct impact to the demand on accommodation.

A boost in the house prices is nevertheless expected in the near future, as the country moves towards opening its border to the world, and the average demand surging.

We can help you make the best of the current situation and leverage a great deal on your first home loan right now. Contact us at 1300 783 493 or fill the free assessment form.

labelCategory: Home Loan Articles