The greatest hurdle for first home buyers isn’t actually the purchase price.
Most lenders now require a 20% deposit due to APRA requirements designed to mitigate against the kind of bad loans that helped trigger banking collapses in the US and UK during the Global Financial Crisis; the few lenders who will lend more than 80% of the purchase price also require the upfront purchase of mortgage insurance, which in itself can run into thousands of dollars.
With property last year being named as Australia’s largest industry, it is certain that any government policy that damages the real estate industry will impact everyone in Australia, says Harcourts Australia’s CEO, Marcus Williams.
Owners of properties which generate an income are eligible for significant taxation benefits. Find out how. Also, eight ways to make your rented house a home.