Perception of housing affordability on the rise
Perception of housing affordability on the rise
Posted on Monday, September 23 2013 at 3:06 PM
Generation Y first homebuyers are driving positive sentiment when it comes to housing affordability.
The annual realestate.com.au Housing Affordability Sentiment Index (HASI) shows
easing household expenses and debt, combined with increased household savings,
is pushing first homebuyers into the market.
Around 46 per cent of the market looking to buy are now first
homebuyers, compared with 28 per cent at the same time in 2012.
Reflective of this increasing positivity, the past 12 months have seen
strong growth in Australian property values, with figures showing an increase
of 5.4 per cent in home values across the country.
Financial commentator and finance editor for research and ratings organisation
CANSTAR, Justine Davies, says the results indicate home ownership is becoming
more affordable, partly due to low interest rates boosting consumer sentiment.
“As well as low interest rates though, there’s also the fact that Gen Y
are getting older, with a greater proportion of Gen Y settling into their
careers and, as the HASI found, feeling financially confident. That confidence
is translating into a willingness to enter the property market.”
Davies offers the following tips for first homebuyers looking to enter the
market:
- Decide where you want to live before you start
looking. This will save you time and energy. - Factor in a future rate rise of three per cent when
deciding what’s affordable for you. - Get to know the market. Attend open house and
auctions before you start talking to agents. - Shop around for a great value loan and compare
interest rates. - Work out what your upfront costs will be.
- Get a property inspection. This can highlight any
structural faults as well as the presence of termites. - Maximise your chance of getting approved for a
loan. Check your credit rating and ensure there are no surprises. - Be patient. Be clear about what you’re looking for.
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Perception of housing affordability on the rise
Why you shouldn’t believe the
property bubble story
Investors nudge first homebuyers out of the market
Attorney-General issues warning to agents
Buyers still face finance hurdles
Understanding auction-speak
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/OMGjF50OYtQ/perception-of-housing-affordability-on-the-rise