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Guest chris955

First home buyers still priced out.

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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.

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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.

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Guest chris955

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.

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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.

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Australian houses are the most overpriced in the world. Good luck people


paul :jiggy:

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Guest chris955
Australian houses are the most overpriced in the world. Good luck people

 

Actually according to that story they are second behind Hong Kong ;)

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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?

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