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First home buyers at lowest ever levels

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Australian Broker | 14 Jan 2014, 06:59 AM Agree 0
The number of first home buyers has bottomed out in Australia, reaching record lows in the final months of 2013.
  • FHO Wanabee Buyer | 14 Jan 2014, 09:13 AM Agree 0
    Good luck to others looking at buying their first home. The market is primed for investors with negative gearing but there is little opportunity for single FHO's to enter the market unless they are happy enough to be on solid incomes.
  • Loretta | 14 Jan 2014, 09:27 AM Agree 0
    3 words - Lenders Mortgage insurance - No wonder FHB numbers are down. LMI has priced people out of the market and has unfair lending criteria, especially if you are located in SE Qld. Just when you think you have ticked all the boxes for formal approval LMI changes the goal posts as they see fit without any warning. Explain that to the client!
  • Tim H | 14 Jan 2014, 10:11 AM Agree 0
    To FHO Wanabee Buyer If you want to buy a home then you need a solid income. Why would a lender take a risk on someone whose income is dubious at best. Buying your first home is not like buying a car or a holiday. It is a long term major commitment. It's about time people started to realise this and stopped bleating about not enough government handouts. The major building companies also need to reconsider their position and focus on building smaller more affordable properties and not the McMansions they are trying to force First Home Buyers to purchase.
  • FHO Wanabee Buyer | 14 Jan 2014, 10:14 AM Agree 0
    I hate the idea of paying LMI as much as anyone else but at the end of the day lenders must minimise their risk. Unfortunately if you are single and not on a huge wage, saving for a house deposit (after paying rent and other living expenses) makes it very difficult, especially as housing prices are so high presently- good luck saving 20%!
  • FHO Wanabee Buyer | 14 Jan 2014, 10:15 AM Agree 0
    Tim, I'm talking about entry level home pricing too. Not McMansions of Toorak or Double Bay.
  • Tony | 14 Jan 2014, 10:36 AM Agree 0
    To FHO Wanabee buyer. There are a number of ways to get into the property market. I would be happy to go through these with you if you like. There might be a way that you haven't looked at which may help.
  • Mick Barry | 14 Jan 2014, 10:53 AM Agree 0
    Why is it that foreign nationals do not pay capital gains in Australia from housing profits whereas Aussies do?
  • cynical | 14 Jan 2014, 03:58 PM Agree 0
    Housing is a BASIC necessity of life yet there are so many vultures hovering.....ppty prices are too expensive, taxes/rates/fees too high....investors rubbing their hands together....overseas buyers just waiting to snap up every piece of RE available...

    You cant have a house with power & water.

    Australia has done a great job over the last 25yrs or so of making it so very tough for Joe Average. Lucky country ...PIGS A**E!! Unless you are in that 20% that apparantly earn & own 80% of the countrys wealth.

    And while the concept of Superannuation is very sound, we are forced to spirit a good chunk of our hard earn money away for a tomorrow that may never private Health Insurance for an illness that may very well kill us b4 we hit the ground.

    Latest stats say that with our poor lifestyle inc stress, the current generation may not outlive the previous generation after all.
  • Chris | 15 Jan 2014, 09:43 AM Agree 0
    Having recently gone through a separation and being left with little suitable equity to use a deposit for a new home, I was horrified at the amount of LMI was payable on an average home ($400k). I don't qualify for the FHOG so the price of a new build increases by $10k off the advertised price and stamp duty on established is ridiculous...I could buy a house outright with my super but I can't live in it...lucky for me rent is cheap! Kill off LMI, reduce Stamp Duty and allow Super offset as an equity guarantee
  • Old joe | 15 Jan 2014, 09:58 AM Agree 0
    I think the major problem is always coming into the deposit. Its always been a problem and if you look at the stats home ownership has hovered around 66% mark for quite a while. In addition if you think we are a nation of renters go to some of these wealthy Northern European countries.
  • Tim H | 15 Jan 2014, 02:13 PM Agree 0
    Old Joe the problem is mindset not deposit. I hear and read so much where it is stated how can a first home buyer buy an average home. in most cases they can't I agree but they can start small and work their way up. Saving a deposit for starters should be a three or four year exercise. Buy a small property and hold it for four to five years at least to build equity and then trade up when both your equity and income have increased.
    I recently did a loan for a first home buyer who had been saving for eight years. She wasn't whining about government fees, LMI, increasing prices etc but opening the bubbly to celebrate.
    Many other examples out there where the FHB put in the hard yards to get the reward of home ownership.
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