The best countries for first home buyers
Australia ranks poorly compared with the rest of the world.
Buying your first home should be an exciting endeavour but with the Australian property market being so tough to crack, particularly in Sydney, it's often a nerve-racking and daunting experience. New research has identified the countries where first home buyers are best positioned to penetrate the marketplace.
Analysing data from the Global Property Guide and Hay's Group Global Salary Forecast and cross-referencing this with changing property prices and average salaries in 33 countries, relocation advice company MoveHub has determined the best countries for first time buyers.
The research reveals that in 2016 countries with the biggest property price hikes also suffered the slowest growth in annual incomes. Alternatively, countries with the greatest gains in salary levels enjoyed dwindling and falling property prices, optimal for first time buyers.
The United Arab Emirates (UAE) claimed the top spot, with average wages rising (0.90%) and property prices slumping (-7.96%) last year, closing the affordability gap quicker than most international regions.
Spain, Greece, Singapore and Switzerland rounded out the top five. All of these nations enjoyed high salary growth (up to 3.70%) and depreciating dwelling prices (as low as -5.75%) throughout 2016.
Australia ranked near the bottom of the pack, experiencing a substantial rise (8.65%) in property prices and a very low increase (0.60%) in salaries during 2016.
Turkey was considered the worst, with skyrocketing property prices and meager salary growth in 2016.
In recent years it has become much harder for young first time buyers to infiltrate the property market. NAB's Q3 2016 Residential Property survey found younger generations are taking a non-traditional path to home ownership, investing in property but living and renting in more preferable, inner-city areas.
This strategy, known as rentvesting, is employed by those struggling to afford the property they want.
The underlying appreciation of land values in Australia is also pushing the overall value of housing higher.
Securing a home loan is likely the biggest investment a person will ever make but a new survey has found the overwhelming majority of Australians don't know their current home loan interest rate.
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