We all now know the government is in chaos, we are hearing
of "Uncertainty" "Scandals" particularly in local councils,
however during my time in Real Estate, I have not witnessed a time such as
this, whereby the “First Home” buying market in completely dead!
Our thriving Real Estate buyers “the youth” have gone
packing to the far west and completely disappeared or have lost any enthusiasm
to buy property, simply because it is far too hard or better yet too expensive!
Our office is in Dulwich Hill within the “thriving” Inner
West corridor, and there has been a shortage and decrease in “First Home” buyer
interest to date, to the point that there are not more first home buyer
enquiries getting any traction at all.
Wake up government! Look at what’s happening with the
property market and adjust your policies accordingly, or be prepared for a
property decline. This decline will not be due to “Interest rates” this decline
will simply become of age through “Vacancy Rates”
Being in the property game for over 15 years I have raised a
valid point that I believe the government should really consider to help the
youth of Australia and help kick start the buying market for the generations to
come.
That theory is below;
Release the
superannuation for the youth ( age
20+30) to buy their first home or investment. There are obvious hurdles around
this however, what good is super above the age of 50, if the youth cannot enter
the market place?
Let that rest with the
public! Would like people’s feedback on this one?
Have your say here;
Great article by Jessica
Darnbrough below, however we need to address real concerning issues within the property
industry.
GUEST OBSERVATION
Heading into 2015, I
think we can expect to see a steady increase in the level of refinancing.
The Reserve Bank’s
decision to cut the cash rate in February will no doubt encourage more home
owners to review their current mortgage, which may prompt them to take the
plunge and refinance into a more competitively priced home loan.
But while an
increasing number of home owners could potentially be inspired to refinance
their mortgage as a result of the rate cut, I do not expect to see a dramatic
increase in the number of new home buyers entering the market.
Given how low
interest rates already are, the February rate cut is unlikely to persuade
potential home buyers to bring their property purchase plans forward. Instead,
potential buyers will continue to take their time and enter the market at a
point that is convenient for them.
That said, the
Reserve Bank of Australia together with other industry regulators, including
the Australian Prudential Regulation Authority (APRA), will still keep a close
eye on what is happening in the property market as they will want to make sure
the rate cut doesn’t artificially inflate the property market – especially in
Sydney.
As part of the
Reserve Bank’s February cash rate decision, governor Glenn Stevens said the
Bank would work closely with “other regulators to assess and contain economic
risks that may arise from the housing market”.
This statement
strongly suggests industry regulators won’t hesitate to implement certain
lending restrictions if the latest rate cut results in a sudden and dramatic
increase in demand for property.
Source: Paul Salsano & The Property Observer
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