The dream plan has always been relatively simple: rent a home until you can afford to purchase one. During the rental process, most will try to put some of their money into savings so that they can purchase a home further down the road. In Australia, this has become nearly impossible to do as borrowers are having a difficult time saving.
The affordability of housing in Australia continues to fall and inturn, the cost of rent has continued to rise. This has caused homebuyers who need to wait to save the funds necessary to purchase to face the inability to do so. In some studies, those that have not purchased a piece of property yet believe they will never be able to do so in the future.
More so, it has become difficult for those that are just starting out in the business of owning a home to continue paying for it. Repayments are becoming strained tasks each month.
According to a survey done by Datamonitor as reported by News.com.au, some 55 per cent of those people that do not have a mortgage and participated in the survey do not believe they will be able to afford one.
House prices here rose 12.3 per cent over the last year. In comparison, in the New Zealand market, some potential homebuyers believe that the housing market may become one of a buyers market, as many see the value of prices will either stay the same or even drop over the next year. New Zealand affordability is also very low.
