For the first time in a long time, it appears that a tidal shift has taken place within the First Home Buyers landscape. First Home Buyers are entering the market in droves, which is great news.
What has led to this seismic shift is often prematurely linked to record low interest rates, but this isn’t the clear cut case. Rather, it’s been the effort of both Federal and State Governments embarking on a pro First home Buyer policy that has paid Dividends to well, First Home Buyers!
First Home Buyer activity is sitting at a 10-year high, and I feel the anecdotal evidence suggests First Home Buyers are now in the driver’s seat, providing much-needed relief when they arrive at an open home, trying to outbid investors and existing property owners. The bulk of this competitive buying edge is driven from the various Stamp Duty, building concessions and Lenders Mortgage Insurance relief afforded by different levels of Government.
The explosion of First Home Buyers is reassuring, especially after a tumultuous 2020 to say the least. However, what I don’t want to see lost in the flurry of housing transactions is the need to ensure affordable housing. Unfortunately, the focus Governments and Media outlets have on the family house as Nest Eggs can be misguided, as the home you live in rarely provides any investment income, and the equity is meaningless unless you utilise it, a concept rarely understood.
It is the security of tenure and spiritual benefit of homeownership that should be promoted, not bragging rights afforded at the weekend BBQ on how much ‘my house has gone up by’. To be frank, the only two days you really know what your home is worth is the day you buy it, and the day you sell it.
A shift in mindset around housing is needed to ensure affordability for future generations. Rather than reading or hearing another article or political head trumpeting the ‘performance’ of property as an asset, or another ‘investor’ picking up yet another property, it would be refreshing (in my opinion) to see how policymakers and industry advocates are continuing to support affordable property ownership for all Australians.
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