First home buyers and investors: Why the time to act is now

Andrew Bell Market Update | Issue 19

First home buyers & investors: Why the time to act is now

After decades in real estate, I can confidently say the pace of change we’re experiencing right now is nothing short of extraordinary. In my role on the board of the Real Estate Institute of Australia, I see firsthand the information and insights shaping our industry and today, the developments unfolding in our marketplace deserve your full attention. Throughout my career, one truth has remained consistent: real estate continues to outperform every other form of investment. Yet right now, we are in a rare moment where both challenges and opportunities are converging, creating conditions unlike anything we’ve seen before.

A Historic Moment for First Home Buyers

For first home buyers, the timing has never been better. The federal government has just brought forward a major scheme originally planned for January 2026 and launched it this month.

Key changes include:

• Removal of income and location caps

• Higher property price thresholds

• The ability to buy with just a 5% deposit

• No requirement for lenders mortgage insurance

In practical terms, this means a buyer can now purchase a property with as little as $50,000 deposit, an unprecedented opportunity.

Our upcoming First Home Buyers Night will provide all the details, so I encourage you to pass this information on to friends, colleagues, or family who may benefit.

More info and registration here

Investors Returning With Confidence

It’s not just first home buyers who are acting. With interest rates beginning to ease  and more cuts anticipated before year’s end, investors are returning to the market with urgency.

In the June quarter alone, investor loan commitments rose by 3.5%, adding more than 1,650 new loan agreements and bringing the total to nearly 49,000 loans. Property values have continued to rise steadily throughout winter, underscoring market resilience and the need to move decisively before prices climb further.

The Shrinking Window of Affordability

At the same time, affordability is becoming a pressing challenge. According to Ray White’s Chief Economist, Nerida Conisbee, Australia’s capital cities are losing nearly 23 affordable homes every single day.

• Sydney: 7.1 homes lost daily

• Brisbane: 5 homes lost daily

• Melbourne: 3.6 homes lost daily

• Gold Coast: 2.5 homes lost daily

While the unit market is adding around 1.45 affordable dwellings each day, it’s nowhere near enough to offset the losses. The result is a net reduction of 22.9 affordable homes daily nationwide.

For buyers, the message is clear: every day of delay means fewer options, while competition from investors intensifies.

Bellissimo Charity Lunch at the Mondrian

Finally, I’m delighted to extend a personal invitation to our inaugural Bellissimo Charity Lunch, a new chapter in our long tradition of community support.

After 31 years of hosting our annual ball in aid of Muscular Dystrophy, we’re embracing the Gold Coast lifestyle with a fresh format: a stylish Friday afternoon lunch at the new Mondrian Hotel in Burleigh Heads on Friday, 24 October.

Set around the pool club, the event will feature chic European-inspired dining, fresh oysters, and a relaxed, elegant atmosphere. Tickets are $299 per person, with larger tables already filling fast, but spaces still available for couples, friends, and small groups. All proceeds will support children living with muscular dystrophy, a vital cause that is close to our hearts.

More info and tickets here

The current property market presents both urgency and opportunity. Whether you are a first home buyer, investor, or simply watching the shifting dynamics, now is the time to act. I look forward to seeing many of you at our First Home Buyers Night and at the Bellissimo Charity Lunch.

Until next time,

Andrew Bell, OAM
Chairman | Ray White Bell Group