First home buyers at record level but big challenges ahead in 2018


first_imgFirst home buyers have hit a record level in latest monthly data, but there are challenges ahead for those yet to get on board.FIRST home buyers have hit a record monthly level when it comes to borrowing, according to latest data.Australian Bureau of Statistics figures found there were 10,227 owner-occupier finance commitments by first home buyers in August of this year — the highest level reached since December 2009.But lawyers and conveyancers are warning that 2018 will see some big challenges thrown in the path of those who haven’t got a foot on the property ladder yet.Two out of three Australian property lawyers and conveyancers believed that even with concessions “2018 will be even harder for first home buyers”, according to GlobalX research.More from newsParks and wildlife the new lust-haves post coronavirus22 hours agoNoosa’s best beachfront penthouse is about to hit the market22 hours agoState first homebuyer concessions helped spur a surge in FHBs in August.CEO Peter Maloney warned housing prices were still a major barrier for many first time buyers, especially given continued rises in major cities.“Unfortunately the state of the market means house prices are continuing to increase at a far greater rate than annual wages,” he said. “While the industry is encouraged by the recent surge in the number of first home buyers, it is sceptical that this trajectory will remain constant over the next 12 months.”Law firm K & L Gates partner Warren Denny said it was very challenging for those entering the market for the first time. “They must feel like they are chasing their tail, because prices are rising at a rate which is higher than the rate they can save for a deposit,” he said. FREE: GET THE COURIER-MAIL’S REALESTATE NEWS DIRECT TO INBOXlast_img

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