How the First Home Buyer Changes Quietly Pushed the Market Up... And Why It Matters

If you’re wondering why the property market feels like it’s taken off again, a big part of the answer comes down to changes most people didn’t even notice the updates to the First Home Buyer scheme in October 2024.

A lot of people still think the scheme is the same as it’s always been, but it quietly shifted in a massive way. First home buyers can now borrow up to $1 million, the old income cap of $125k for couples has been scrapped, and they still only need a 5% deposit with no LMI.

That alone has pushed a whole new wave of buyers into the market including young buyers who previously couldn’t even get close. You can imagine the impact that has when demand is already high and stock is tight.

Some people question whether encouraging 22-year-olds to take on million-dollar loans is responsible. Maybe, maybe not. But it’s happening because buyers don’t want to miss out. With prices rising around $80k a year in parts of the Gold Coast, waiting too long can quickly put you out of the game.

On the flipside, if you already own a home, these changes have worked in your favour. More demand means higher values and faster growth in your equity something most owners won’t complain about.

The bottom line?The market isn’t running on luck. It’s running on rule changes that gave first home buyers more power than ever and they’re using it.

If you want to know how this affects your suburb or your home’s value, feel free to reach out anytime.

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