CBA recently published research showing that more housing was unaffordable, and that was based on two full incomes going to pay the mortgage. Now another report from Domain and Unloan shows that aspiring house buyers in Sydney are indeed largely priced out from the cheapest segment of the market after interest rates and home prices rose sharply last year.
For now, most aspiring home owners would have to rely on the bank of mum and dad to beef up their deposits, buy an investment property while renting, or consider a “lease to own” model.
Buyers have to look further out towards the city’s outer fringes to afford an entry-level house, or opt for a unit in the city. Unless they get help from the family bank, or buy a really cheap investment property and rent, or live at home. The property market is broken.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
CBA recently published research showing that more housing was unaffordable, and that was based on two full incomes going to pay the mortgage. Now another report from Domain and Unloan shows that aspiring house buyers in Sydney are indeed largely priced out from the cheapest segment of the market after interest rates and home prices rose sharply last year.
For now, most aspiring home owners would have to rely on the bank of mum and dad to beef up their deposits, buy an investment property while renting, or consider a “lease to own” model.
Buyers have to look further out towards the city’s outer fringes to afford an entry-level house, or opt for a unit in the city. Unless they get help from the family bank, or buy a really cheap investment property and rent, or live at home. The property market is broken.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
I have been covering the disgusting story of construction defects across Australia for some time. In January we published a post titled “Wanted: More High-Rise Purchasers Willing To Play Russian Roulette! First Time Buyers are the biggest victims!
And lets be clear, while the problem is Australia-wide, New South Wales does appear to be at the epi-centre thanks to the privatisation of building inspections, the drive for quick construction at low cost, and unprecedented demand to meet supply. And of course recent proposed planning changes means more high-rise more quickly built. The disaster continues.
There are no real guarantees on current new construction, despite recent changes. So my message to first time buyers who are already under the pump financially, is to be very careful. Make sure you do your own due diligence. Caveat Emptor!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
Digital Finance Analytics (DFA) Blog
First Time Buyers Are At The Pinnacle Of The Building Defects Boom!
I have been covering the disgusting story of construction defects across Australia for some time. In January we published a post titled “Wanted: More High-Rise Purchasers Willing To Play Russian Roulette! First Time Buyers are the biggest victims!
And lets be clear, while the problem is Australia-wide, New South Wales does appear to be at the epi-centre thanks to the privatisation of building inspections, the drive for quick construction at low cost, and unprecedented demand to meet supply. And of course recent proposed planning changes means more high-rise more quickly built. The disaster continues.
There are no real guarantees on current new construction, despite recent changes. So my message to first time buyers who are already under the pump financially, is to be very careful. Make sure you do your own due diligence. Caveat Emptor!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
Growing difficulty entering the housing market has led to the most first home buyers tapping into the federal government’s Home Guarantee Scheme since its inception four years ago, according to the National Housing Finance and Investment Corporation.
The scheme, which offers three types of guarantees, allows first home buyers to purchase a home with a minimum deposit of 5 per cent to avoid paying mortgage lenders’ insurance. The remaining amount for a 20 per cent deposit – which is required to be exempt from paying the insurance – is guaranteed by the federal government.
The number of first home buyers who used the scheme increased to 45,000 for the 2023 financial year, according to the NFHIC’s fourth annual trend and insights report.
The increase meant almost one in three first home buyers needed access to the scheme to enter the housing market, which is an increase from one in seven in the year prior.
Arrears under the scheme meanwhile have remained at less than 0.1 per cent, which is less than the market average for high LVR (loan-to-value ratio) lending. But the growing cost of living meant the scheme’s arrears were expected to rise in line with the broader home loan market, NHFIC warned.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
More First Home Buyers Tap The Government To Enter The Property Market...
My latest reflections on the problems facing prospective first-time buyers, as borrowing power is shrinking faster than prices, and expenditure measures work again being able to get into the market.
Some are hoping for rates cuts soon, but that I doubt, though it is possible APRA will reduce the 3% buffer for some minor relief.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
My latest reflections on the problems facing prospective first-time buyers, as borrowing power is shrinking faster than prices, and expenditure measures work again being able to get into the market.
Some are hoping for rates cuts soon, but that I doubt, though it is possible APRA will reduce the 3% buffer for some minor relief.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest from the RBA and APRA on mortgage lending, plus the latest from the ABS on wealth destruction. In addition, the Productivity Commission rubbish First Home Buyer Grants, and Queensland scraps its additional interstate property tax. All on the same day…
Labor has announced a Regional First Home Buyer Support Scheme, which to me is entirely political in nature, and further exacerbates the housing affordability issues we have been discussing. Meantime we discuss our data on rising mortgage stress in the regions, and why this is occurring.
We look at the latest proposals to allow first time buyers to access superannuation to buy their first home. The proposal is supported by powerful Political voices, but also opposed by Ministers. And evidence from our surveys suggests this would be a trigger to rise prices further.
Go to the Walk The World Universe at https://walktheworld.com.au/
