Victoria, the toughest place to buy
Victoria, the toughest place to buy according to The Age newspaper research published recently.
Ms Christina Zhou says that “first home buyers struggle most”. “First home buyers have a tough task, but new figures show that when it comes to saving a deposit and making repayments, Victorians are ding it the toughest in the country. Despite official interest rates being at a historic low of 1.75 percent, analysis shows it is harder for first timers trying to buy a property now than for those in the 1990’s.
Melbourne’s median house price sits at a record high of $762,962, as price growth continues to outstrip weak wage rises. New modelling by Domain Groung chier economist Andrew Wilson, based on the average income and first home buyer loan from the Australian Bureau of Statistices, has found it is harder to save a deposit in Victoria than in NSW. …While it is easier now to for home owners to make repayments than in 2005 to 2008 – when interest rates were higher- its still more difficult than in the mid-1990’s to early 2000’s….. The problem for first home buyers is not the repayment of the loan, the problem is savings. ……….The hardest part between now and the 1980’s is the deposit savings.”
My son has just graduated University and is employed full time. He has a HECS debt to pay off as most graduates do. He has a car to pay off and all of lifes other commitments to meet. Its not easy to save 20% of the median house value as well and buy a home.
At Buyer Solutions, we advocate that people save and enter the property market as soon as they can manage. This takes discipline, flexibility and commitment.
Gen Y’s are a little sick of hearing about home buying. Many don’t aspire to ever own a property. We encourage young people to make compromise and possibly rent where they want to live but buy and investment elsewhere. Here is a good article for young aspirational property buyers to read and to pass on to your kids and family.
Once you have successfully saved your deposit, come in and meet with Buyer Solutions team and ensure you buy well and set your self up well in the property market. You don’t want to waste all that good work and make a poorly informed buying decision that could have costly consequences. We have a proud and successful track record buying homes for first home buyers since 2001.
For independent advice on buying or selling real estate, contact Buyer Solutions +61 3 9816 8555 or email jspencer@buyersolutions.com.au
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