Australians trying to buy their first home are being driven away by strict serviceability testing and higher interest rates, with mortgage demand in its sharpest fall since 2022.
Saved ye a click bait
Falling buying power right alongside falling house prices.
House prices are falling because first time home buyers don’t earn enough to buy a house and aren’t buying
but the stat is misleading, house prices and sales of the most expensive homes are doing very well
it’s the average and poor who aren’t buying houses and the cheaper homes aren’t selling
It’s not interest rates that are the problem, it’s wages and house prices that are the problem
I reckon another factor is the cost of living and inflation is eating into everyone’s ability to save money.
So it makes it even harder to accumulate enough for a deposit, as well as continue to pay off a loan.
I have it on good authority that cost of living pressures and inflation are entirely attributable to the Labor government and Anthony Albanese in particular.
According to all the business owners I know he inherited an economy that was running like clockwork and drove it in to the ground with his unfair and unAustralian spending on things that business neither wants nor needs.
Also he is punishing landlords for their success.
Additionally if he goes after trusts they are convinced that every successful entrepreneur in the country will leave and take their money with them.
They must be telling the truth right? They get all their talking points from a select handful of investment bankers who are fearless truth tellers after all…
every successful entrepreneur in the country will leave and take their money with them.
… fine?
I always want to ask, “If these are the talented go getters you imply… Why is their passive income potential being capped a bad thing? Couldn’t they just shift away from buying heaps of property and shifting their holdings into trusts to reduce their tax bill and move towards starting more businesses and new enterprise?”
I literally know people who have shut down successful businesses because they could make more money for less work as professional land lords, so how is the current (or former) structure incentivising business ventures?
The prices aren’t ‘easing’ across the board. Sure a lot of overpriced properties have dropped a bit but houses at the lowest end (i.e. the ones first home buyers are after) are still getting more unaffordable
Also plenty of wealthy buyers who aren’t first home buyers will be moving snapping places up while prices are low.
This is why building affordable homes, of all styles, in all locations is important.
That shouldn’t be a surprise - all the affordability problems are still there as the price falls are so far minimal, then add in a well publicised potential to financially screw yourself by spending years owing more than the property you buy ends up being worth.
As soon as I read the headline ( well, the only bit I did read ) I had the same thoughts as yourself. It’s pretty bloody obvious isn’t it. Too many people have been suckered into the FOMO situation.
Now people are looking at it in a totally different way and it’s a Fear Of Getting Fucked. ( Doesn’t have the same ring to it as FOMO tho )
I don’t have a fear of getting fucked. I have an assumption of getting fucked. At every possible economic opportunity.
Fear Of Fucking Up?
Because no one wants to buy in a falling market and possibly be left with a loan worth more than the property… especially one who is mortgaged to the hilt and relying on capital gains to get them to a window where they can refinance away from the single lender that would give them money
looks like a few more slum lord apartments coming onto the market at a good discount… but more then a few are real buyer beware stuff.
if i can keep gainfully employed, we might be able to buy next year 🤞
Hang in there! I’m rooting for you mate 💪
Adding to the comments here, knowing what you dedicate the next 30 years to will probable be uninsurable, if not destroyed within your lifetime doesn’t help either.
Hurricane, flood or wildfire country?
They’re all growing
Yeah we’re in the edge of hurricane country though we get a lot of nor’easters. But had a drought the last 2 years. Our house is at least in a area of minimal flood hazard.
