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First Home Buyers

Majority of First Home Buyers Believes, Housing is Unaffordable

November 13, 2015

An annual first homebuyers survey has been done by Mortgage Choice, that shows, the majority among the first homebuyers counts the housing to be unaffordable.

The figures collected shows that 80.6% people who are buying house for the first time thinks that buying the house is difficult to afford. At this Mortgage Choice chief executive officer John Flavell commented,“The issue of unaffordable housing was more predominant in certain states”.

At this he said, “The percentage of first home buyers who consider housing to be unaffordable is significantly higher in New South Wales and Victoria than it is in Queensland and South Australia”.

The percentage of people who are saying housing to be hard to afford were as follows in various states:

  • The highest percentage found to be in New South Wales of 86.9 per cent.

  • In Victoria the people found with the same issue were 85.7 per cent.

  • In South Australia the percentage found to be 76.8 per cent.

  • In Queensland the people were about 75.4 per cent.

The data released from ABS shows that the average home loan has grown almost four times faster than the average Australian full-time wage in the last two years.

At this Flavell says, “The average home loan size in Australia is now approximately 4.5 times larger than the average wage – up 25% in the last two years. By comparison, the average loan size was 3.9 times the average full-time Australian wage in 2013”.

To conclude the survey done, 42.5 per cent home buyers proposed government to introduce a first home owner grant for established properties, whereas 30.6 proposed government to remove stamp duty for first time buyers.

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