TOPIC: Did the cost of buying a house or unit mean that you lived at home with mum & dad for longer? NEW STAT: Over the past year, there was an increase in the number of Australians who are staying home, with 14% admitting that its easier to live with their parents, compared with 10% 12 months ago. Source: Finder.au Full media release: Australias biggest Reserve Bank Survey by finder.au shows eight experts are now forecasting a possible cash rate drop next year – five of which have changed their predictions from last week. The finder.au Reserve Bank Survey reveals the five experts who have changed their cash rate forecast from last week: • Shane Oliver, AMP Capital • Scott Pape, Barefoot Investor • James Bond, Financial Services Council • Noel Whittaker, QUT Business School • Bill Evans, Westpac Just last week, there were three other survey respondents who were expecting a cash rate fall next year, including: • Andrew Wilson, Domain Group • Stephen Koukoulas, Market Economics • David Scutt, Scutt Partners With news of possible interest rate drops, its likely to heat the property market further, by fuelling competition and higher bids for property auctions. While its good news for existing borrowers as lower mortgage repayments are on the cards, its bad news for first home buyers, who are already struggling to enter the property market. A recent Home Loan Insights Survey by finder.au showed that more Australians have given up on the property market and are choosing to rent. There were triple the number of first home buyers preferring to rent (32%) than commit to a mortgage, compared to last year (10%). There was also an increase in the number of Australians who are staying home, with 14% admitting that its easier to live with their parents, compared with 10% 12 months ago. Its important for first home buyers who are planning to buy to not overstretch themselves, as interest rates are expected to rise in the next couple of years, even if there might be one more rate cut. Borrowers and prospective home buyers need to prepare for a buffer of at least 2 percent, which means an extra $400 per month in mortgage repayments for a $300,000 home loan. If you can not afford this extra cost, you will be in over your head and you need to consider reviewing your budget or lowering your costs by refinancing or renegotiating with your lender. #SydneyProperty #sydre Photo credit: Google Earth
Posted on: Sat, 06 Dec 2014 01:58:50 +0000
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