Australian first home buyer numbers at lowest levels in four years, rising prices and reduced grants blamed FIRST-HOME buyer numbers have plummeted to their lowest levels in four years as they continue to get crunched out of the nation’s booming property market. Industry experts say entry-level buyers’ hopes of securing a home are being doused by reduced government grants, rising house prices, cashed-up investors and established buyers. Some are suggesting it has never been as tough as now for first-time buyers. Government grants are forcing people down the path of building a new home but building can be more expensive and with the shortage of land and increased demand the time delays can be as long as 6 months before building can begin. Some experts say the first homebuyer market now seems to be harder than it’s ever been, as some lenders are also changing their rules, if you don’t have a least a 10 per cent deposit and have been banking with them for six months or have a credit card with them they won’t except you. Real Estate Institute of Australia data showed in four years the nation’s average median house price has climbed from $518,600 in the March 2010 to $605,500 in the March this year, which is daunting for anyone let alone first home buyers. Record-low interest rates continued when the Reserve Bank of Australia kept the cash rate on hold at 2.5 per cent on Tuesday for the 13th consecutive month, which is mainly helping people who already have a home and mortgage and not first home buyers. With the governments winding back of first-home owner grants and combined housing price increases has created affordability issues, and has made the great Australian dream even tougher for aspiring buyers. There’s a resignation that some people think they might be renting permanently. But Myles Kelly of Advantage Mortgages Australia says “with all this doom and gloom for the First Home Buyers market it doesn’t have to be the case. We help young people develop a long term strategy to buying their first home. It is not an instant thing and with goals, a plan, strategy and cash flow management you can own your first home quicker than you think. Contact Us at Advantage Mortgages Australia to book a meeting with one of our qualified finance professionals to assess your situation. www.advantagemortgages.com.au. AND PLEASE LIKE US ON FACEBOOK   Money experts warn customers over fixed rate home loans A GROWING number of lenders are offering fixed home loan rates in the rock-bottom 3 per cent range but experts are warning customers they could get caught out by these enticing deals, with expensive application fees, ongoing fee costs and hefty revert rates once the loan term expires — some as high as 5.79 per cent — are among the ways customers could get stung by taking short fixed rate loans. One lender last week dropped its one-year fixed year loan rate to 3.99% per cent but financial service firm … Continue reading Blog