Guest chris955 Posted April 10, 2013 Share Posted April 10, 2013 http://mobile.news.com.au/business/breaking-news/first-home-buyers-still-priced-out/story-e6frfkur-1226617504532 I found the first paragraph interesting, does it really make a huge difference when interest rates drop by a small amount ? Quote Link to comment Share on other sites More sharing options...
RockDr Posted April 10, 2013 Share Posted April 10, 2013 It mainly makes a difference in making more people think they can afford a mortgage. These are generally the same people who if they do buy, will get caught out when the interest rates inevitably rise again a few years later and they can no longer pay the increased minimum repayments. It might also make a difference for people who are living below their income level and are looking to put a large proportion of their "spare" income towards paying the mortgage off quickly. In this case, the low interest rate means they'll be paying off the capital on their loan much faster, and they'll probably have paid a large proportion of the loan off before the interest rates get too high again. Quote Link to comment Share on other sites More sharing options...
Suspect Device Posted April 10, 2013 Share Posted April 10, 2013 Since living here, I've found that a lot of first time buyers are chasing large houses and don't want to start at the lower end, ie flat / unit. Quote Link to comment Share on other sites More sharing options...
Guest chris955 Posted April 10, 2013 Share Posted April 10, 2013 Yes that is something we noticed, they want to get in at the top but all they manage to do it get in over their heads. Quote Link to comment Share on other sites More sharing options...
RockDr Posted April 10, 2013 Share Posted April 10, 2013 The problem is, most of the units are close to the city and hence the same price as houses further out. Both of which are outside the budget of most first home-buyers. There is a shortage of flats/units in affordable neighbourhoods. Quote Link to comment Share on other sites More sharing options...
paul1977 Posted April 10, 2013 Share Posted April 10, 2013 Australian houses are the most overpriced in the world. Good luck people Quote Link to comment Share on other sites More sharing options...
Guest chris955 Posted April 10, 2013 Share Posted April 10, 2013 Australian houses are the most overpriced in the world. Good luck people Actually according to that story they are second behind Hong Kong Quote Link to comment Share on other sites More sharing options...
paul1977 Posted April 10, 2013 Share Posted April 10, 2013 I stand corrected..!!!! Quote Link to comment Share on other sites More sharing options...
colinmaclec Posted April 10, 2013 Share Posted April 10, 2013 Well that's what renting and homes west is for.......................... Quote Link to comment Share on other sites More sharing options...
paul1977 Posted April 10, 2013 Share Posted April 10, 2013 And for clever people Quote Link to comment Share on other sites More sharing options...
colinmaclec Posted April 10, 2013 Share Posted April 10, 2013 Yup buying at top end of market just cos the media and estate agents tell you it wont crash and paying more for mortgage than rent plus rates and repairs is pretty dumb. property is way to overpriced in most of the western world and its only gonna lead to tears. Will our kids have to take 100 year mortgages to pass on to their children? Quote Link to comment Share on other sites More sharing options...
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