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:

RSVP @ Sustainable Australia

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%)

(Source: CoreLogic)

Preliminary Weekend Auction Clearance Rates (11th – 12th of March, 2017)

Source: CoreLogic

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%.

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.

See this week’s best first home buyer homes

Tweet of the Week

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Written By,

First Home Buyers Australia

First Home Buyers Australia
First Home Buyers Australia

Australia’s leading organisation specialising in assisting first home buyers achieve the great Australian dream of property ownership.