First home buyers caught up in Government induced frenzy

At the moment, I can’t believe how many sub $600,000 properties are selling so close to and above the asking prices – a result we haven’t seen since the buying frenzy in 2002. I speak with dozens of selling agents every week and they can’t believe it either.

I am seeing dozens of first home buyers literally paying 5% or more than they should be as they try to capitalise on the extra $7,000 grant from the government.

If you had planned to sell later this year anyway then my advice is don't delay as this frenzy won’t last forever. Come June 30 when the extra $7,000 bonus for first home buyers is over then you may not see the same money that you will today as most first home buyers will have bought by then.

If you’re an investor you have two choices - just be patient and when you do find a good property act swiftly as you can still pick up a good property at the right money or wait until after June 30 to re-enter the property market. First home buyers should also evaluate if it’s worth entering the market at this time with such inflated prices or whether it’s better to forego the extra grant and wait for prices to settle.