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First home buyers staying away in droves

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Australian Broker | 06 Mar 2014, 06:20 AM Agree 0
Nearly a third of median weekly family income is now required to meet home loan repayments, new research shows.
  • John from Geelong | 06 Mar 2014, 09:10 AM Agree 0
    So 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.

    Still, the investors will be able to move back into the market and claim their middle class welfare of negative gearing and rent the properties to the potential first home buyers who are not interested (or capable) of entering the market.
  • Interesting | 06 Mar 2014, 09:42 AM Agree 0
    Escalating living costs - electricity, gas, water etc..
    High government stamp duties.
    Escalating LMI costs
    5% deposit
    All these incentives for first home buyers - cant work out why they aren't 'banging on the door' to get into the market.
  • Peter | 06 Mar 2014, 09:43 AM Agree 0
    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.
  • JC from Sunshine Coast | 06 Mar 2014, 11:38 AM Agree 0
    As interesting clearly notes, 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. Government incentive such as Qld First home owner construction grant are also unavailable at settlement of land and therefore cannot be used in many cases as deposit funds, even on non gen savings options. We need incentives that can actually assist first home buyers into a property.
  • Papery | 06 Mar 2014, 01:21 PM Agree 0
    Cant agree more....except I think the reality is a lot higher than 30% for most punters & I cant wait for the new stats once IR start pushing upwards again
  • dpathle | 06 Mar 2014, 02:34 PM Agree 0
    Tony Carn recommends Reverse Mortgages. Would love to know if he would put his folks into one. Would think not.
  • Tim H | 07 Mar 2014, 04:00 PM Agree 0
    I wonder about the First Home Owner figures when in NSW as there is no FHOG for established homes purchasers who are First Home Buyers are not often recorded. Also with the investor numbers increasing how many of these are first home buyers.
    Not sure how the ABS source their results but would be interested to know if and how the above are recorded.
  • Ian | 11 May 2014, 06:24 AM Agree 0
    Welcome to the biggest rort of the century......Australia's housing market.
    Our sons and daughters have figured it out and have left the building.
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