Purchasing a Home In Australia is often the single largest investment a person or family will make. However, the younger generations are giving up hope of ever buying their own home.
A report from the AIHW (Australian Institute of Health and Welfare) pointed out that the younger generations may be restricting themselves out of their market needs on their personal choices. Research shows these younger generations of Australians are living with their parents for longer because of the high cost of living, and they are getting crippled by debt. This is what Australia is experiencing right now, the change of generations when it comes to homeownership, with younger households being influenced by factors which limit their ability to become homeowners such as economic challenges, lifestyle choices, and work-home preferences.
Purchasing a home is not simply an issue of saving up a deposit and then purchasing a property. If you have a 20% deposit that can get you settled for repayments that is just right for you, afford a number of options with the types of mortgage you could access and it is surely the best option because banks require up to a 20% deposit, the amount a first home buyer needs to save can be impossible to raise in a short span of time. This is exactly why it is no surprise to find that young first home buyers are finding it increasingly difficult to purchase a Home In Australia.
There are a lot of other fees including stamp duty fees, transfer fees, government fees, building and pest reports charges, LMI (Lenders Mortgage Insurance), and right of ownership and solicitor’s fees that can sum up to thousands of dollars.
Also, strict lending requirements, huge upfront costs, the market price of living, and wage growth are stagnant. These factors have combined to make the Great Australian Dream to be as “harder than ever. ” This is despite the gradual decrease in property prices in most Australian cities. You still need to earn a great salary to buy a home.
Sometimes or in most instances, it is important to be realistic about what you can afford. First home buyers should completely understand their budget, and what they can only afford in the interest of maintaining the lifestyle they want.
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