First Home Buyers Give Up
First Home Buyers Give Up – One-fifth of Australians will give up on the dream of buying their first home in the next two years if home loan interest rates hit between 8 and 9 per cent, according to a survey from home loans broker Mortgage Choice.
By yesterday afternoon all four major banks had increased their standard variable home loan rates by 0.25 per cent, taking average mortgage rates to about 7 per cent, The Australian reports.
On Tuesday the Reserve Bank put the cash rate up 25 basis points to 4 per cent.
Mortgage Choice, which releases its first homebuyers survey today, said it found 2 per cent of first-time buyers would give up the hunt for a home if interest rates rose 25 basis point.
“As of Tuesday, these people would no longer be looking to purchase their first home,” the broker said, noting that the survey had been undertaken late last month.
Shani Maund, 23, recently began again looking for a studio apartment in inner Sydney in the $300,000-$350,000 price range after getting cold feet just over a year ago in the midst of the global financial crisis.
Ms Maund said there were always 10-15 people waiting to inspect the property when she arrived.
“The market is certainly hotter now (than a year ago), but it should cool if rates rise.
First Home Buyers Give Up
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