First home buyers have been cautioned against postponing the purchase of property based on “unfounded predictions” that house prices are about to drop.
First home buyers are mistaken in thinking it is wise to delay entering the housing market in the hope that prices will soon fall.
This has been a familiar pattern since 2008, whereby academics continue to predict corrections – anywhere from 10 per cent to complete Armageddon. But in reality, Australia has seen consistent year-on-year growth since 2012 with a little over 5.0 per cent growth in the past decade.
While some people are “legitimately financially shut out”, there is a concern that many who have the capacity to enter the market are deferring their decision due to “unfounded predictions”.
House prices have risen by an average of 8.1 per cent in the three years to March 2016, with a mean price of $612,100. This indicates that today’s first home buyers need to save an additional $49,580 a year just to keep pace with the market, he said.
Our recommendation to first home buyers is to talk to a licensed mortgage broker to discuss their circumstances and determine their borrowing capacity. They will then be in a position to make an informed, confident decision and objectively assess whether they can enter the housing market today.
Our team can also determine if they are eligible for a ‘No deposit, No worries!’ First Home Purchase‘. This requires no deposit and no savings history providing the required other bank criterias are met.. It is a great oppotunnity to speed things up and get into your home right now