Housing Affordability Hits The Wall
First Home Owners have been confronted with higher interest rates and inflating house prices continuing on from the end of 2009 reports SMH. This has effectively put a holt on new purchases for customers wishing to enter the property market for the first time according to data from The Housing Industry Association and the Commonwealth Bank. With interest rates at an all time low, increasing strong international investor interest and slow growth in housing construction, housing is only getting more expensive and out of reach for the majority. Many prospective home owners feel that even with well paying jobs, good savings habits and additional grants that housing prices are simply rocketing ahead at a rate which cannot be caught. The housing affordability index rose by 18.4% in December 2009 after a fall in September of only 3.3%.
Simon Reibelt from Oasis Home Loans Northern Beaches said that the data showed property’s increasing investment potential, and that it would only give better returns. Though coming at such a high cost, people entering the market should research extensively the best options for their situation, looking outside mainstream lenders for more affordable products.