Do you see the market dropping after the increased first home buyers grant ends?

Q.

I am a first home buyer, living in Sydney and working in Macquarie Park, who can afford a property of $395,000. Do you see the market dropping after the increased first home buyers grant ends? Are there any areas you would recommend to invest in?

There are reasonable grounds to believe that the first home owners grant has pushed up the price of cheaper properties. Therefore, it is likely that prices may well fall due to lack of demand if a reduction in the grant happens at the same time that interest rates start to rise. When buying property you need to consider location and the nearness to services such as good shops and reliable public transport.