First Home Buyers may begin to slowly re-enter the property market in the coming months.
Based on the latest Genworth Financial’s Home Buyer Confidence Index, recent first home buyers have shown they are comfortable with high debt levels, this may well result in other First Home Buyers deciding that now is the time to enter the market.
While home loan affordability remains a key concern for first home buyers, many wanted to step onto the property ladder sooner rather than later but found that lack of adequate deposit is holding potential buyers back.
The Real Estate Institute of Australia has to this end issued a call to the Federal Government to revisit the current levels of FHOG with the view to offering new buyers a boost.
The Mortgage Insurer believes that overall First Home Buyers have no aversion to taking out high lvr home loans – as this is their only chance of becoming home owners.
The Genworth March Index showed that first home buyers are, overall, more comfortable with higher debt and LVR lending than any other home buyer. This is most likely due to the high capital appreciation of housing over the past few years.
To assist First Home Buyers REIA has called to Federal Government to re-introduce a boost to the current First Home Buyer Grant to entice more first home buyers into a flagging market.
In its pre-budget submission, the REIA has suggested a range of measures it claims will increase housing affordability. In addition to increasing the First Home Owners Grant, the group has also called for a retention of negative gearing, a commitment by the government not to increase capital gains tax on property investment nor introduce a tax on owner-occupied homes, the removal of stamp duty and allowing superannuation to purchase homes.