It seems as though from the recent ABS figures that the idea for some people out there to buy my house fast is much harder than people think, despite interest rates being at a record low.
This calls us to ask questions about whether to buy a house in Australia is too costly.
RP Data have said that prices in Sydney have soared by 13.2% over the year, and yet first home buyers are being squeezed out of the market, making up 6.8% of new housing loan commitments. Across Australia, the proportion of first-home buyers taking out loans sank to 12.5 per cent for the month.
Then you read that auction rates are off the hook, with 700 auctions last week in Sydney and 1220 in Melbourne. It’s interesting that vendors putting houses on the market are selling my house fast for more money.
Perhaps it’s the overseas investors locking in property in a good economy? This artificially drives house prices up, as people make decisions based on the fear or losing out, rather than seeing if it is a good buy.
In the Sydney Morning Herald article this morning, Economist Saul Eslake, a member of the National Housing Supply Council commented that:
”The decline in interest rates and all the billions of dollars governments have spent on first-home owner grants have been of very little benefit to young people but have been of enormous benefit to older generations who already own their homes.”
The Shadow Treasurer, Chris Bowen said this about the housing affordability issue:
”Living in western Sydney I can see the difficulties for young and first-home buyers of getting into the market, this affordability crisis is a serious national issue.”
Mr Eslake points to a drop in property values as the only way to solve the affordability crisis, or some massive market correction.
There is no solution housing affordability crisis besides a market correction. Or is there….
A solution to Housing Affordability:
In what we see every day there are people out there buying houses and not being prudent in working out repayment amounts, getting valuations completed, working out if the house is actually worth the dollars that they will have to spend.
But for those who want to buy a house but can’t there is another way. Often people can’t enter the market due to a deposit problem, or a problem with getting a loan.
At Property Solutions for Australia we get people started into the property market with one of our houses, and then after building up some equity, then they can get a loan or sell it and upgrade to another property.
This avoids buying in fear mode (buying now before all the properties are bought up) and gives you time to fix the issue needed originally. If it’s a deposit problem you have time to build up a deposit payment by payment. If it is a loan problem, the time will help fix credit issues and give you time to develop a good repayment history before applying for a loan. And you get to move in today and start to build your future with security.
If this is something that would interest you, or you would like to know more go to www.propertysolutionsforaustralia.com .