Recent data from Real Estate Group has shown quarterly property values moderating after falls over the last five years, providing a more affordable entry point into the property market. Couple this with historically exceptionally low interest rates, many first time buyers and owners upgrading their homes see this as a great time to buy.

While property prices are cooling across the nation, property commentators have noted that Darwin’s property prices have tracked its local economy more than national impacts, so any uptick in Darwin’s business and employment activity could flow through to rising prices.

 

How has the Darwin property market impacted getting a home loan?

For the most part, those entering the property market are largely not impacted by the reduced property prices. Of all things, it has meant that smaller deposits are required to purchase a property because of the lower house prices and subsequent stamp duty. For existing home owners, it is dependent on the existing debt on the loan.

If the property was highly leveraged at the peak of the market, this will mean in some cases you may have limited options for refinancing your loan. Unless your property has a loan greater than the value of your property, you will not be restricted in selling your home because of LVR concerns.

Outside of this, it’s business as usual. The majority of lenders in Australia do not restrict the ability the ability to purchase property in Darwin

What are the most in demand suburbs in Darwin?

For houses, Nightcliff, Nakara, Fannie Bay and Leanyer have consistently showed the most activity for would-be property purchasers.

For apartments, Fannie Bay, Stuart Park, Bayview, Karama and Rapid Creek were the most in-demand areas.

The general trend continues that properties close the the CBD and in the Northern suburbs of Darwin are receiving the highest level of enquiry, open visitors and reduced times on market.

Want to enter the Darwin property market? What should you do to improve your ability to buy a home.

When applying for a loan there are a few important factors that lenders look at:

  • Your Income
  • Your Liabilities
  • What deposit funds are available
  • Your credit file/score
  • The property being purchase/refinanced

To maximise your ability to purchase a house in Darwin you should:

  • Save Save Save. The more cash you can save towards pushing your home, the greater the likelihood you will be approved.
  • Remove any liabilities you can. Credit cards and personal loans in particular can significantly reduce your borrowing power, so if possible reduce any credit limits that you can. Speak with your mortgage broker however to work out whether you’re better using your cash funds to reduce liabilities, or commit it towards your deposit as in some cases when you have a limited deposit it is more cost effective to not pay down credit cards or car loans and instead put those funds on your home deposit, reducing potential lenders mortgage insurance costs.
  • Check your credit file. Mistakes happen and small things like an old phone bill can be the difference between being successful in buying a home or being declined. By checking your file you can find these issues upfront and try to rectify them by paying out any outstanding balances and using a lender which will look more favourably at your overall situation.

If you’d like to know how you can better position yourself for buying a home in Darwin, contact the Darwin Broker team today.