First home buyers choosing to invest
A property agency has claimed the number of first home buyers is skyrocketing, but that buyers are choosing to invest rather than become owner-occupiers.
While recent figures from CoreLogic put first home buyer participation at a record low, iBuyNew chief executive Mark Mendel has claimed first home buyer numbers are swelling, but that buyers are choosing the route of investment rather than becoming owner occupiers. Mendel said the number of first home owners buying through iBuyNew had risen 188% since 2014.
But Mendel said the market for first home buyers as owner occupiers had "collapsed".
“Even though property in most cities is very affordable with interest rates set to stay at historical lows, young Australians have been put off entering the market and they prefer to rent,” he said. “The reality is that the great Australian dream of owning your own home is fading and the goal of being a home owner is diminishing."
Mendel called on governments to remove barriers for owner occupiers.
“It’s an issue for state and federal governments with the current schemes to entice first home buyers out of the rental market either out of date or ineffective. We have also found that stamp duty which can add many thousands of dollars to the cost of a property purchase is also a major deterrent to first home buyers.”