PROPERTY: Lending restrictions removed for CQ postcode
LIFTED restrictions on lending for properties in the 4702 post code is good news for first home buyers according to local real estate and finance insiders.
According to Terri Johnson from Green Finance Group said she has seen first-hand the upturn of the local property market since the lifted restrictions.
In June 2015, banks reclassified the area and added the requirement of a 30 per cent deposit on homes bought in the 4702 postcode.
The lifted restrictions mean those looking to buy in the postcode no longer need to meet the 30 per cent mark for a security deposit on a house, giving buyers more bang for their buck.
The area covers a sprawling area of 84 non-urban localities around Rockhampton, Banana shire and the Central Highlands and includes, Gracemere, Bouldercome, Dingo, Keppel Sands and Shoalwater.
One of the houses made slightly more attainable to a potential first home buyer is a large, three-bedroom, low-set brick home on .4ha at 52900 Burnett Hwy, in Bouldercome.
James Allen from Mr Real Estate said the house, that had been on the market for only two months, was gaining considerably more interest he could only attribute to the lifted lending restrictions.
Ms Johnson, in her position as a mortgage broker has helped many in the community secure their first property purchase.
She has worked through the period of restricted lending and is now seeing potential home buyers, who were not able to make deposits, return for a second shot.
"The difference might only be a couple of grand or so but for a lot of people looking to get their first home, it can be the difference between being able to afford the deposit or not,” she said.
The decision to lift the restrictions was made by some banks, and Ms Johnson said it shows there is confidence in the areas driven by buyer interest, past sales, low vacancy rates and increasing local opportunities.
Mr Allan said the sparse and varied nature of the 4702 postcode meant for buyers, there is a large range of different properties suitable to different lifestyles being made more accessible.
"Regardless of what borrowing or buying stage they're in, there is going to be a range of different people looking to buy in a range of different areas,” he said.
He said Gracemere was among the localities to gain much interest from buyers due its affordability and proximity to Rockhampton, and more people were coming through open homes across the board.
Ms Johnson noted Riverside Dr and Edenbrook Park in Parkhurst were receiving a lot of interest among her clientele.
The lending reform applies to the purchase of both land and established houses in the 4702 postcode.