Thought some of you might find this interesting. Especially wrt the first home buyers market. Although it is now only 15% of the market ( with a late year rally it still won't get to the 30% it was with FHOG+ bonus'), they are not feeling mortgage stress but they are taking longer to save and purchase.
So the average first home buyer was 24 in 1960's and 31 in 2000's so they are renting for longer ( or staying at home). 63% have other debt that is inhibiting them buying. 71% don't think they can save a deposit and of those who could they think they could not afford a mortgage payment.
As investors affordability is going to make regional areas more attractive, but keep a watch on rental yields in cities ( where 70% of the population lives). If people are renting longer and not buying a home and investors are putting their cash elsewhere we could see a contraction of available properties and an increase in rent ( and as a flow on property prices).
Don't just assume that BIS Shrapnel and the others predicting a low growth rate for capital cities is a given - watch the figures, especially where there is a shortage of supply.
Hope this helps
Jane Slack-Smith
PS Also interesting is that most assume First Home Buyers would be the hardest hit with increasing rates since their purchases during the first home buyer boost and low 5% interest rate environments a few years ago - they are doing just fine it is the investors according to the report that are most likely to default. Another reason to get some quality thinking around where you buy.
So the average first home buyer was 24 in 1960's and 31 in 2000's so they are renting for longer ( or staying at home). 63% have other debt that is inhibiting them buying. 71% don't think they can save a deposit and of those who could they think they could not afford a mortgage payment.
As investors affordability is going to make regional areas more attractive, but keep a watch on rental yields in cities ( where 70% of the population lives). If people are renting longer and not buying a home and investors are putting their cash elsewhere we could see a contraction of available properties and an increase in rent ( and as a flow on property prices).
Don't just assume that BIS Shrapnel and the others predicting a low growth rate for capital cities is a given - watch the figures, especially where there is a shortage of supply.
Hope this helps
Jane Slack-Smith
PS Also interesting is that most assume First Home Buyers would be the hardest hit with increasing rates since their purchases during the first home buyer boost and low 5% interest rate environments a few years ago - they are doing just fine it is the investors according to the report that are most likely to default. Another reason to get some quality thinking around where you buy.
