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FHB Strike: Australia's first home buyers - where have they gone?; Pull forward due to FHB grant changes will subdue FHB demand into 2014
Topic Started: 23 Aug 2013, 03:33 PM (8,181 Views)
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Changes needed to get first-home buyers back in the real estate market

MICHAEL MATUSIK
September 14, 2013 12:00AM

THERE is a widely-held perception that has to do with the concept of value for money.

Housing in Australia - and in particular, new housing - is not perceived as offering "value". In fact, quite the contrary. Some would say there's little bang for our buck when it comes to housing.

But offering value for money is quite different from being unaffordable.

Affordability myth busted

First-home buyers, for example - let's just call them Gen Y for the sake of a name - statistically may well be able to afford to purchase a home.

Yet the long-term average in Australia for the take-up of loans by these first-home buyers is only a 15 per cent market share.

A stumbling block for the Gen Y cohort today could well be a generational mismatch between this group and the expectations of the financial services industry.

Our normal banking process for home loans - that of requiring a savings history, sizeable deposit, full-time work, lengthy periods of employment and a stable record - may be at odds with the way in which today's younger generation wants and sometimes needs to work.

This group is more mobile when it comes to changing jobs - the Australian Bureau of Statistics shows that those in the 20-24 year age group are three times more likely to change jobs in a year than those in the 45-54 year age group. And this group, also, are more willing to take up the growing job opportunities in our system, of contract or project work.

Read more: http://www.news.com.au/realestate/buying/changes-needed-to-get-firsthome-buyers-back-in-the-real-estate-market/story-fndban6l-1226725032377
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Our normal banking process for home loans - that of requiring a savings history, sizeable deposit, full-time work, lengthy periods of employment and a stable record - may be at odds with the way in which today's younger generation wants and sometimes needs to work.


Michael Matsuik is clearly as thick as two planks, and is obviously no student of history. His ideas have sub-prime written all over it, and these ideas have come about because many property bulls are clamouring for something - anything - to keep younger FHB's purchasing.
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First home buyers priced out of the market

By Christina Zhou
Monday, 23 September 2013

First home buyers have remained on the sidelines despite the advantage of low-interest rates and government stimulus for new properties.

SQM Research’s managing director Louis Christopher has told a property seminar in Sydney that investors and upgraders, rather than first home owners, have been driving the recovery.

“What we may be seeing is a combination of investors using self-managed superfunds to get into the property space,” he said.

“We’re seeing more developments being built in Sydney’s west, and I think investors have been jumping in on that, and I think we’ll see a lot more of it.”

While first home buyers appear to struggle with house prices, especially in Sydney, Mr Christopher believes there are still options if they make sacrifices.

“First home buyers are being priced out of the market but I think they still have choices, and this is a bit of a dilemma,” he said.

“You have to live somewhere that may not be your first choice, it may be almost your last choice, but the choice is still there.”

First home buyers may have to rent and save for longer and decide whether they want to keep up or get into the market.

“They’re getting pretty dismayed by the price rises, which have already happened,” he said.

“And what’s been happening when they try and buy properties, [is that] they’re getting priced out.”

However, Mr Christopher remains optimistic that there will be a first home buyer response in Sydney’s west as they take advantage of the $35,000 government concession.

“In an optimal world, what we would see is a pick up in first home buyers buying new homes because that generates the economic activity that the RBA is hoping for and also creates a reasonable supply response too,” he said.

For more from the SQM Conference, including the top Sydney suburbs you should be watching, read this story with gallery attached.

Read more: http://www.propertyobserver.com.au/finance/first-home-buyers-priced-out-of-the-market/2013092265179
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Many potential FHB's are emigrating. 92,250 last 12 mths....
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