First Home Buyer Warning: Don’t Wait in Vain
Progressive mortgage broking franchise, MoneyQuest, has today called on first home buyers to not delay entering the housing market in the hope that prices will soon fall.
According to MoneyQuest Managing Director and finance industry leader, Michael Russell, there are fewer first home buyers entering the market than ever before.
‘In the past couple of weeks a number of so-called property experts sat around a crystal ball yet again claiming the imminent arrival of a housing price fall. This has been a familiar pattern since 2008, whereby academics continue to predict corrections – anywhere from 10% to complete Armageddon,’ said Russell.
But in reality, Australia has seen consistent year on year growth since 2012 with a little over 5% growth in the past decade. Although some people are legitimately financially shut out, Russell is concerned that many who have the capacity to enter the market today are deferring their decision based on unfounded predictions.
While Russell acknowledged that first home buyers need to be very mindful when considering the type and location of housing, Australia’s population growth and housing undersupply is continuing to fuel the present housing cycle.
Housing prices have risen by an average of 8.1% in the past three years (to March 2016), with a mean price of $612,100. This means that today’s first home buyers need to save an additional $49,580 a year just to keep pace with the market – which is clearly beyond them.
‘My recommendation to first home buyers is to see a licensed mortgage broker to discuss their circumstances and determine their borrowing capacity. They will then be in a position to make an informed, confident decision and objectively assess whether they can enter the housing market today,’ advises Russell.
For further information or to arrange an interview, please contact:
Michael Russell
Managing Director
MoneyQuest
[email protected]
(03) 9583 6598
Julie Ryburn
General Manager – Operations
MoneyQuest
[email protected]
(03) 8616 9377
About MoneyQuest
Established in 2007, MoneyQuest was founded with a clear goal – to make property ownership easy and rewarding for everyday Australians. Since then, our growing team of brokers has helped thousands of families and investors build their financial future – from first home ownership right through to retirement.
Visit www.moneyquest.com.au or call 1300 886 100. Money Quest Australia Pty Ltd is a Credit Representative (No. 396857) of ratesonline.com.au Pty Ltd, Australian Credit Licence 384404
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