The lack of first home buyers is always going to concern mortgage brokers – and news that the number of first home buyers was the lowest since the Australian Bureau of Statistics started to collect data was no different.
The number of those who are choosing to enter the housing market is also persistently low compared to the long-run average, despite eight interest rate cuts since November 2011, ABS said.
A number of readers weighed into the debate with their opinion.
JC from Sunshine Coast
said there needs to be incentives that actually assist first home buyers into a property.
“It is not just housing prices adding to the affordability issue, it is the rising (at well above CPI rates) of every other household expense such as health insurance, electricity, groceries etc, plus the incredible barriers to enter for FHO now with rising LMI costs and reducing CAP LMI thresholds, it is difficult for first home owners to get into a property in the first instance."
shared his personal story, saying even though interest rates are low the pricing of the properties is too high for first home buyers to enter.
“My wife and I earn $60k each, and we still think it will be pushing it if we buy a house. We would not be comfortable having a deposit less that 20% of the property value, which means we need to save around $100k. Not easy,” he wrote.
John from Geelong
thinks after a decade of government schemes to promote demand the market has grown tired of the increase cost and value of purchases, so demand has fallen.
“Selling the supply side solution is harder than selling the demand side and our politicians are incapable of making the argument.”
But Comment of the Week goes to Interesting
, who took a wry look at the issue.
“Escalating living costs – electricity, gas, water etc. High government stamp duties.
Escalating LMI costs. 5% deposit. All these incentives for first home buyers – can’t work out why they aren't 'banging on the door' to get into the market.”
Thanks to all those who commented this week – keep those opinions coming!