Home Dream Fades For First Time Buyers In Australia
 

First Home buyers now only account for one in fifty loans in NSW, the most expensive housing market according to new figures by mortgage broker AFG.

Nationally the figure for First Time House Buyers is One in Ten. (according to ABS figures)

In Sydney it would take a couple buying their first home 6.7 years to save the $165,100 (20% ) deposit. Thus avoiding hefty lender's insurance mortgage fee.

Re: Home Dream Fades For First Time Buyers In Australia
 

So is 20% the usual deposit ? That is a huge amount of money to save, around 25k a year, wow. How would those on lower income manage ?

Re: Home Dream Fades For First Time Buyers In Australia
 

Simple....we, uhm, they can't....

Re: Home Dream Fades For First Time Buyers In Australia
 

That's so sad. So the housing market is made up of people already on the ladder and investment buyers.

Re: Home Dream Fades For First Time Buyers In Australia
 

Blame the Chinese!

Re: Home Dream Fades For First Time Buyers In Australia
 

I was in some good luck buying my off the plan apartment in early 2013 Inner West Sydney.

It wasn't *that* expensive then. And I only had to pay 10% initial deposit.

Came completion 2014, bank valued it much more than purchase price thanks to good luck, and used that increased valuation for the 80% LVR loan.

So I ended up paying only the 10% initial deposit while avoiding LMI and stamp duty, and got $15k FHO grant.

Phew that was really lucky of me.

Sing praise to the Lord!

Re: Home Dream Fades For First Time Buyers In Australia
 

But you think that the German system of everyone renting forever is much, much better so it's not a problem. Rather than paying their own mortgages, the young can rent and spend their money on a far superior lifestyle. As a consequence, they'll be paying the mortgages of the evil few who actually own the properties, who will all be getting f**king rich - but hey, who cares because the majority will be living the party life

A much better setup where everyone is a winner

Happy days ahead :thumbsup:

Re: Home Dream Fades For First Time Buyers In Australia
 

40 years ago, it was 'blame the Japanese"....but what you said is in part so true - the Chinese seem to be the world's richest Communist (insert Capitalist) nation.....

Re: Home Dream Fades For First Time Buyers In Australia
 

And blame the grey beards. No make that blame the laws that allow the grey beards to make awful investment choices with the retirement funds by making a loss and offsetting that against their tax.

Re: Home Dream Fades For First Time Buyers In Australia
 

Its also about first home buyers not wanting the monthly slugg of a mortgage. I know many people who have well in excess of the average required deposit but prefer to rent because they can live in their desired property for half the cost in rent that they would pay monthly on a mortgage.

Re: Home Dream Fades For First Time Buyers In Australia
 

And they can change addresses more easily if they wish.

Re: Home Dream Fades For First Time Buyers In Australia
 

Having experience in this field one doesn't get rich. Hardly evil rich nor parasites living on the back of others. Rents as said before are set. Not great appreciation either. While Australia looks after speculators remarkably well little is offered to renters who are more or less forced into expensive housing in Australia, to which they may or may not be able to afford. Getting a mortgage and affording it being of course two very different things.

Better deal though you for sure for all concerned. Housing is about as unproductive as possible to find. Especially in a nation like Australia's case with so much debt and money tied up in such an unproductive resource.

Australia will need to adapt and allow more equality to renters to make the situation anywhere near on par with the German model.

Re: Home Dream Fades For First Time Buyers In Australia
 

Big difference between the two though. Forty years ago,straight out racism would have played I'd say a far larger part. I don't think it was Japanese individuals outbidding locals at close on every prime Sydney and Melbourne action. It wasn't a case of getting who knows how much corrupt money out of China away from their governments scrutiny.
Hence the inability to care about paying way above reserve price to ensure actual freehold.

Japanese were to my knowledge more business and corporates buying up hotels and office developments. Not real estate and specific suburb take over.

It is said 60 million Chinese have the ability and desire to invest abroad. Just a small percentage of that market if Australia was their country of choice have the ability to change the landscape as never seen before.

Re: Home Dream Fades For First Time Buyers In Australia
 

I know a few in that category as well. They prefer to ply their trade all over the world and find it far more convenient to rent at the high end of the market be that London, Sydney or Asia.

Re: Home Dream Fades For First Time Buyers In Australia
 

London used to be close to par on rent and mortgage repayments providing you had the deposit to stump up. Not sure where it is now.