On the one hand, people want the value of housing to continue to increase which benefits homeowners and those with investment properties. Then on the other hand we're battling with skyrocketing rent prices and house prices which have gone up enormously.
Heck, there was a house I rented which sold for $570k in 2020 and is now worth approx $760k.
So when I read in the article "The grim outlook for the 2023 property market has come from investment bank Jarden, which said the Reserve Bank’s “hawkish” interest rate hikes to calm inflation was to blame." I have little sympathy.
It's a grim outlook perhaps for those who either own a property or own multiple, but not for many of us looking to buy our first home. The house prices are going down to adjust to where they should have been prior to the increases in inflation.
First home buyers cannot afford and shouldn't be buying in a market where we have recordly high interest rates and properties that have increased in value in the short term by upto 40%. It's peoples first home for god sake.
House prices and the associated interest rates have skyrocketed so much in the short term that agencies are seeing people who bought and built homes can no longer afford it during settlement. Where a home that was purchased 1-2 years ago upon finishing can no longer afford it and that's taking into account the loan serviceability buffers which banks have had in place.
That's the price of an average at best 1 bedroom condo where I live. Shit is cray
To get into that, which would in most previous years be the next logical life step, I'd be going from splitting a $1500 studio basement suite with my gf, to splitting a >$4k/month mortgage after saving 120k for a down payment.
Heck, there was a house I rented which sold for $570k in 2020 and is now worth approx $760k.
So when I read in the article "The grim outlook for the 2023 property market has come from investment bank Jarden, which said the Reserve Bank’s “hawkish” interest rate hikes to calm inflation was to blame." I have little sympathy.
It's a grim outlook perhaps for those who either own a property or own multiple, but not for many of us looking to buy our first home. The house prices are going down to adjust to where they should have been prior to the increases in inflation.
First home buyers cannot afford and shouldn't be buying in a market where we have recordly high interest rates and properties that have increased in value in the short term by upto 40%. It's peoples first home for god sake.
House prices and the associated interest rates have skyrocketed so much in the short term that agencies are seeing people who bought and built homes can no longer afford it during settlement. Where a home that was purchased 1-2 years ago upon finishing can no longer afford it and that's taking into account the loan serviceability buffers which banks have had in place.