It’s being bantered all over the press everywhere, the property market has out priced first home buyers and they have magically disappeared from the market place…
Blogger: Todd Hunter, director, wHeregroup
They are gone and don’t look to return anytime soon…
Are they? Are they really?
I personally would like to know who came up with this data and where it came from.
In NSW since the First Home Owners Grant (FHOG) and the Stamp Duty concession was abolished, with the exception for new properties, there is no way to actually gauge who is a FHB and who is not.
There are no forms to fill in, no boxes to tick on the loan application form, no sections to fill in on the land transfer.
So I ask, how do they know this???
It sounds like some fancy media or marketing hype that someone has conjured up and now the media herds are running with it like no tomorrow.
For those who have ever dealt with the wHeregroup, you would have had contact with one or both Rebeccas. Well Rebecca, my personal assistant (B2 we call her) has recently purchased her first unit.
Now this unit was in the Sutherland Shire but was not new… B2 wanted to live in the Shire so rather than buy a new house and land package in the western suburbs, where there is available land, she opted to pay the stamp duty and live where she wanted to live. And as the $7k grant is no longer available, her transaction went through undetectable as a first home purchase.
In the past I have exposed inaccuracies in the stats and supposed property indexes.
Well it appears that this fictional statistic has also been skew iffed… And it’s such an easy fix… All we need is a box ticked on the land transfer so the type of purchaser can be calculated correctly.
I do agree, however, that it is becoming increasingly more difficult to first homeowners to get into the market; especially in the Australia’s capital cities… but C’mon lets not over exaggerate things.
Lets find solutions…
It may mean that FHB’s may need to take a different tact in investing in property, whereas they may have to buy a cheaper investment property or two in large regional areas where house prices are still around the $300k – $350k mark and increase their wealth in those properties. So that when they sell they have a much larger deposit for their home… as the game changes so must your game plan…
But one thing’s for sure, we certainly don’t need is a whole bunch of negative inaccurate hype deterring our future generation from buying property.
About the Blogger
Director and location researcher for the wHeregroup, Todd Hunter had accumulated a personal property portfolio consisting of 50 properties by the age of 31.
He is a regular commentator for Smart Property Investment.