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Rising rents and home prices will cause the first homebuyers to face double pain

Ms. King was responsible for advice and client care at Stockspot, an online investment adviser, and used this service to make investments.

“We are helping many customers save on home deposits by investing. It’s very popular,” she said.

Richard Dennis, Chief Economist at the Australian Institute, emphasized the tax incentives offered to investors as trying to buy a home in the face of rising rents and rising real estate prices is a “big challenge”. ..

“No one should be surprised that investors bidding on home prices are significantly raising the rent they are charging. That’s the plan,” he said.

“House prices are too high, so I hope they go down, but politicians don’t want to say that because two-thirds of Australians own or repay their homes.

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“We’re putting young people in a pinch. We’re pretending to be trying to solve a problem, but for two-thirds of Australia’s population, they don’t feel it.”

Dennis urged reform of capital gains tax discounts (a position currently rejected by both major political parties) and policymakers to reconsider the complete exemption of family homes from capital gains taxes. ..

He also proposed a reconsideration of public housing.

“For example, Australian defense housing provides low-cost housing to tens of thousands of defense personnel. Why can we do it for teachers, nurses, and elderly care workers? Couldn’t you? “

Mortgage broker Aaron Christie-David sees that while most of the income goes to rising rents and home prices, first-time home seekers are trying to save.

Some renters struggling to save are getting help from mom and dad’s banks.credit:Peter Ray

“That’s what I call I’m caught in a rental trap,” said Atelier Wealth’s managing director. “It hurt their self-confidence … and by the time they save a little more, the prices have gone up little by little, so it feels like the goalposts are always on the move.”

He said more and more buyers are receiving gifts from mom and dad’s banks to keep track of their deposits quickly.

He is investigating whether clearing student debt will increase his borrowing capacity and proposes to exempt mortgage insurance for those who save 15% of their deposits instead of the usual 20%. Advised first-home applicants to consider.

Buyer agent John Carew also sees parental assistance as a “really common” feature of the market, as baby boomers bring wealth transfers to priced offspring.

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Some potential buyers live with their families to reduce costs, but they are potential in both home-based and monthly rent checks. Buyers are motivated to find their place.

“There seems to be some upward pressure on rents in Sydney right now,” said the founder of Mayfield Property Buyers. “They say,’Dead money for rent, we just want to enter the market.'”

Rising rents and home prices will cause the first homebuyers to face double pain

Source link Rising rents and home prices will cause the first homebuyers to face double pain

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