First home buyers feel housing affordability strain

An overwhelming majority of new buyers who plan to purchase within the next two years believe housing is unaffordable in their state.

According to Mortgage Choice’s annual First Home Buyer Survey, 80.6 per cent of those purchasing property for the first time consider housing to be ‘unaffordable’.

First home buyers in NSW were the most disillusioned about property prices, with 86.9 per cent of survey respondents saying that housing was unaffordable in their state.

Victoria was next with 85.7 per cent, followed by Western Australia with 81.4 per cent, South Australia with 76.8 per cent and Queensland with 75.4 per cent.

Mortgage Choice chief executive John Flavell said the federal government should introduce measures that would make it easier for first-time buyers to purchase property.

“While the various states currently have first home buyer grants in place for those who purchase a newly built property, nothing is given to those buying established properties, which is approximately 80 per cent of all first-time buyers,” he said.

According to the survey, 42.5 per cent of respondents said they would like to see the government introduce a first homeowner grant for established properties, while a further 30.6 per cent would like to see the government remove stamp duty for first-time buyers.

“With property prices rising steadily across most markets, a lot of first-time buyers are finding themselves priced out of the market,” he said.

“Now we have a new prime minister in place, I would like to see the plight of first-time buyers receive the attention it deserves.”

[LinkedIn: What can be done to help first home buyers?]

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