This article is from the Australian Property Journal archive
The Real Estate Institute of Australia has welcomed calls by the Iemma Government for the Federal Government to allow first homebuyers to access some of their superannuation as a home deposit.
According to the REIA, despite the cooling Sydney housing market, home loans in New South Wales remains the least affordable in Australia.
According to REAI, in the December quarter 2005, the proportion of family income required for payment of the average mortgage in New South Wales was 36.5%, and had been at that level for the last six months of 2005.
As a general rule, lenders require a deposit of 5% from first home buyers and based on the December quarter 2005 Sydney median house price of $518,000, this would require first home buyers to have saved $25,900 before being able to buy their own home.
REIA president Tony Brasier said this is a tough call when many first home buyers are also paying rents of around $260 per week for a 3 bedroom house, starting or raising a family, paying off accumulated HECS debts, and generally trying to realise some of the aspirations Australians hold for their adult lives.
“It is not only Sydney where first home buyers face difficulty. Right across Australia, the increase in house prices and the decline in home loan affordability has squeezed first home buyers out of the market,” he added.
In the December quarter 2005, only 18.7% of all dwellings financed were first home buyer purchases, compared with an average of 21.8% from July 1991 to June 2002, when prices started to rise.
“The REIA supports access to voluntary superannuation contributions for first home buyers to make a deposit on their home,” Brasier concluded.
By Nelson Yap
