Difficult times for first home buyers

According to a new survey conducted by realestateview.com.au, 21% of ‘would be’ first home buyers are missing out on entering the property market due to the inability to obtain finance.

Securing finance is proving to be one of the most difficult hurdles to overcome when purchasing a property and for first home buyers it is ever so difficult. The Australian dream of property ownership is becoming ever so out of reach.

“The Housing Sentiment Report for the March 2014 quarter also found that 49 per cent of potential buyers had been put off by rising prices and 48 per cent had been priced out of the market or outbid.” (Excerpt from rebonline.com.au)

When you access all the costs associated with purchasing a property it is astounding to see the amount of capital that is required. Saving for a deposit could potentially be the number one barrier for first home buyers.

Over the course of a decade the average mortgage size has doubled and despite record low interest rates first home buyers are faced with soring utility bills and an increase to the cost of living In addition to the rising cost of house prices and demand for bigger deposits by the banks.

On the flip side, realestateview.com.au also interviewed renters who had no intention of buying.

The survey also found that 28.7 per cent of renters had avoided the market because they couldn’t afford to buy in their preferred area, 25.7 per cent considered the market overpriced and 22.5 per cent thought it would be cheaper to rent.

Auction Results:

Sydney: 78%
Melbourne: 68%
Brisbane: 33%
Adelaide: 67%
(*Source APM)

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