10 per cent drop in first home buyers - OCT 2014

[arashi87]

Changes to first home buyer grants and rising house prices have constrained first home buyers despite low and falling mortgage rates.

To make it more obvious:

Interest rate drop = property market price increase (FHB does not have enough deposit, assuming 20%)

Interest rate increase = property price cools down (FHB struggles to repay the interest)

So this concluded that 10% of FHB will continue to rent or live with parents...however in my previous post stating that rental return are falling as well

Does that mean numbers of people living under the same roof will increase fair bit in the next 1-2 years?

 

[landlubber]

Did you read recently how the ABS (with all it's thousands of employees) couldn't get the unemployed/unemployment numbers right ? ... and in fact were SOOOO far out it was a joke ? Well I think FHB numbers are another candidate. And the "missing link" is "FHB" who should be classified as "first time buyers who buy for investment". That would include some of the current trend to buying an IP via a SMSF. The whole "buyer category" topic is more complex nowadays and the numbers guys haven't worked it out yet. LL

 

[norwoodman]

As mentioned above, you'll find that more first time buyers are now going the "investment before home" route (I fall in to this group), or buying established property that doesn't qualify for the FHB grants in many states. Either that, or for lifestyle/career reasons choosing not to buy until later on in life.

 

[landlubber]

If you do the numbers it makes a LOT of sense to rent where you live ... and also have an investment property. Even better, live with parents and have IP to get ahead at the start. LL

 

[WattleIdo]

Did you read recently how the ABS (with all it's thousands of employees) couldn't get the unemployed/unemployment numbers right ? ... and in fact were SOOOO far out it was a joke ? Well I think FHB numbers are another candidate. And the "missing link" is "FHB" who should be classified as "first time buyers who buy for investment". That would include some of the current trend to buying an IP via a SMSF. The whole "buyer category" topic is more complex nowadays and the numbers guys haven't worked it out yet. LL

Good point.

arashi87: Does that mean numbers of people living under the same roof will increase fair bit in the next 1-2 years?

Maybe ... which could be a good thing
But also, people will move out to the 900sqm blocks where you can smell the roses.
So nice to be paying half the rent for more than twice the place (refuse to post that grin but please note: smug).