CBA say’s housing affordable…..Government say’s it’s not……but does nothing about it
FHBA Market Update: 13/06/2017
HOUSING…..we see it everyday. We all understand the function and purpose of housing. We all know we have an option to buy a property….or rent one.
And because we all know as much as this, almost every Australian has an opinion about it. Our opinions are often influenced by own personal financial circumstances, goals, beliefs and political thoughts (amongst other things)…but almost all of us form an opinion on this topic.
So naturally, when the topic of ‘is housing affordable or not’ comes up, we are all going to have an opinion on this. If you are an investor, you will likely say housing is affordable and home loans are repayable. But if you are priced out of the property market by investors, you will likely be on the side that housing is ‘unaffordable’.
It is healthy for the public to have different views on such issues. But what we need our leaders to do is come up with policies that reflect the need to get a balance between the different needs of our citizens.
It doesn’t exactly help when our biggest bank, CBA, say’s housing is affordable, while the Government say’s housing is not affordable…..yet despite this view, the Government has made no action to address what they say are concerned about.
Confused by all this? You aren’t the only one!
In today’s FHBA Market Update, these different views on housing affordability are explored further; we take a look at the latest housing prices; plus why Victoria’s new proposed measures to help housing affordability are a good thing.
Enjoy reading the weekly FHBA Market Update.
News affecting first home buyers
In the past week, housing affordability has continued to dominate headlines:
- House prices affordable, or unaffordable? – Do you think property prices are affordable or unaffordable? Everyone seems to have a different opinion…..just compare CBA’s thoughts with the Governments – find out more in ABC News
- FHBA applauds Victoria government – In an exclusive interview, FHBA co-founder Daniel Cohen has explained why FHBA like’s the recent housing affordability proposals announced by the Victorian government and why FHBA hopes other states will consider adopting similar measures – read Daniel’s interview in The New Daily
- One week to go until the Housing Affordability Summit – This Sunday the 19th of March FHBA co-founder Daniel Cohen will join Mark Latham & Dr Cameron Murray on stage at a public housing affordability debate in Sydney. 114 tickets already gone, 26 remain – details + RSVP to the Sydney event here
Capital City Price Movements
The CoreLogic Daily Home Value Index (as at 13/March/2017):
- Adelaide – 479.20 (Qtr + 0.81% / Yr + 2.80%)
- Brisbane – 551.55 (Qtr + 0.17% / Yr + 3.91%)
- Melbourne – 900.99 (Qtr + 6.38% / Yr + 14.39%)
- Perth – 577.28 (Qtr + 0.83% / Yr – 3.22%)
- Sydney – 1106.53 (Qtr + 5.63% / Yr + 18.58%)
Preliminary Weekend Auction Clearance Rates (11th – 12th of March, 2017)
Interest Rates Update
Last week the Reserve Bank of Australia (RBA) met to review the official cash rate. The RBA board opted to leave the cash rate unchanged at 1.50%.
- Learn more about the RBA rate decision
- Compare a range of savings account rates
- Compare a range of home loan rates
New Homes of the Week (ed. 45)
Last week the Victorian Government announced a range of measures they plan to introduce to assist first home buyers get into their first home, sooner. One of those proposed measures was a $10,000 First Home Owners Grant (FHOG) bonus to eligible first home buyers who buy a ‘new’ home in a regional location (which would take total Grant payments to $20,000 for those eligible). For this week’s edition of FHBA New Homes of the Week we decided to focus on regional Victoria by showcasing 5 great house and land packages for first home buyers.
Tweet of the Week
This morning’s headlines.And @ScottMorrisonMP continues to pretend that negative gearing doesn’t need to be reformed.
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First Home Buyers Australia