“If you don’t get in now, you never will”. It’s a phrase being repeated a lot these days, especially amongst first home buyers. But the reality is housing affordability is going down with rising house prices. This isn’t helped with all the panic buying that’s going on.
How are first home buyers meant to break into the market when the walls are too high to climb? Is the first home savers account enough of a push to encourage a solid savings base and reduce the affordability gap?
There has also been pressure placed on banks to recognize rent as a form of ‘genuine’ savings. If borrowers could use rental repayments as evidence of genuine savings then more first home buyers would be able to enter the property market.
Currently no lender recognises rent repayments as a component of genuine savings.
Are interest rates the worst enemy for first home buyers or is it the deposit for a first home?
We want to hear your thoughts.
Tags: affordability, Budget, First Home Buyers, First Home Savers Account, Home Loan, Home Loans, Interest Rates, Mortgage, Property Market
I think it’s a lot to do with the younger generations spending habits. Australian’s practically live on credit and place short term goals as a greater priority like buying a car, a watch or a pair of shoes. I don’t think these generations are encouraged as much as previous ones to save for long term goals such as buying a property.
I agree. But I also think that a lot of people are looking for property that is beyond their actual affordability. The only way you can really get your foot through the door is if you’re realistic on how much deposit you have and how much you can afford to repay.
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