First home buyers edged out of housing market by investors

ABS data released on November 12 shows  2924 fewer  loans for first home buyers were approved in the September quarter, compared with the equivalent quarter last year. First home buyers were hardly one-in-eight  borrowers in spite of the low interest rates.

This year to date, the number of loans approved for first home buyers has almost halved.  

The disappointing figures across Sydney can be attributed to NSW government’s decision to dump the $7,000 First Home Owner Grant and end stamp duty exemptions worth up to $17,990 for first home buyers purchasing existing homes.

Instead, the Government’s New Home Grant Scheme has helped the investors and has paid 9,802 grants to property investors and  existing  home owners buying a second property ”“ further putting first home buyers out of the market.

Overseas investors have also impacted the market thus causing a steep rise in housing prices pushing young home buyers out of the market who now tend to stay with parents or rather in shared rental accommodations. It takes now, would-be young home buyers much longer to save for a deposit for a house as the prices hit the roof with aggressive investors edging them out.

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