Surprising new generation of home buyers

Each month, the banks to gather all of your information in loans are going to whom and for what. This is sent to the good people of the Bureau of Statistics, which will be published shortly after.

The most recent publication is clear as day. The amount of loans that go into being an investor of the housing is, finally, in retirement, and the amount of go to owner-occupation is skyrocketing, as this graph below shows.

For a long time, first time home buyers where you may be out of the market. The percentage of first home buyers fell below 13%. But now, as the market is getting unlocked, that is emerging again.

First time home buyers suddenly up 16.6 percent of the market, the highest level in nearly four years. It is still a way out of the average 22 per cent, a level which was applied in the 1990s, but it seems that finally the youth are clawing their way back.

WHAT IS HELPING

One of the factors is that the price of housing. Have softened a lot in Perth as the mining boom ended. More recently, even in Sydney, the pressure has finally gone.

The government can take the credit for this move. It forced banks to offer higher interest rates to investors and to any person that is just to pay the interest.

As you can see in the following chart, a large gap that has opened up between the interest rate that you pay as an owner-occupant and the rate of interest that you pay as an investor. The gap is even greater if you have an interest-only mortgage.

Chart that shows the differences in home loan rates. Source: Banks websites; RBASource:Supplied

To be clear, these changes are made by the prudential regulatory, that is independent, so that our Treasurer Scott Morrison can’t take all the credit.

Playing with the rules around bank lending is part of what they call the prudential regulation. You may see the word prudent sitting in the name and that is exactly what it is. Giving different lenders, different rates of interest makes that speculation on the property less attractive.

That not only makes the market more accessible to first home buyers, but also, by reducing the amount of hot money that can move in and out, makes the market a touch more confident and a little less prone to an accident. The only question is why banks do not, and a long time ago.

THE FUTURE

A future in which home ownership is out of reach is not one that I would like to live. I don’t own my own home by now, but I would like to one day. It is not in anyone’s interest to see house prices rise to bubble levels and then crush the economy when they fall.

For a time it seemed that Australia was on the verge of a division along the lines of property. There are those who hold land and those who had to pay to use it.

But not everyone can be an owner, or there would be no one to rent a property.

The last symptom of the dystopia that was the risk blind youth that was presented in the assets of the portfolio of stories, the celebration of small pieces of equity in sixteen units of crap at the periphery of the city (and living with mom and dad). The increase in the cost of borrowing from investors is without a doubt make your life more difficult, but it should make owner-occupation more feasible for the rest of us.What does the super deposit scheme mean for you?0:44

The Turnbull government has announced that young people will be able to use their retirement funds to save for a first house deposit, so how exactly does it work?
On August 1, 2017a month ago/display/newscorpaustralia.com/Web/NewsNetwork/Finance – syndicated/