First-home buyers unable to break into the housing market in coming months may find it even more difficult to buy next year as prices continue to rise, theEliza Owen, CoreLogic head of research said surging rents, increasing home values and higher interest rates all combined to inflict unprecedentedFirst-home buyers may struggle even more to buy next year as house prices increase further according to CoreLogic.
While growing size of Australia’s cohort of renters and the chronic shortage of affordably-priced rental propertiesAn increase in the number of homes on the market as rates rise willThe time it takes to save a deposit increased by one month to 9.6 years in Melbourne, it rose by three months to 9.4 in Brisbane and lengthened by more than one month to 10.2 years and 7.5 years in Adelaide and Perth respectively.
A calculation by comparison site Rate City shows that it would take nine years and one month to save a deposit on a $1 million property if they start saving $400 a week in a high-interest savings account earning 5 per cent interest. “As prices continue to rise, potential homeowners may feel like they’re given no choice but to take out a loan they’re not comfortable repaying in order to get the home of their dreams.”Home buyers who are able to clear the deposit hurdle and serviceability assessment must now budget a bigger portion of their income to housing costs amid higher house prices., homeowners need to allocate a record 57 per cent of their income to servicing a new mortgage, up from 51.6 per cent in the March quarter.