If you’re looking for a mortgage broker in Baldivis, you will probably be happy with the latest Housing Affordability Report. The report is compiled by the Real Estate Institute of Australia and Adelaide Bank. The big news is that the first quarter of 2016 brought us the best housing affordability since 2013.
Affordability is determined by the proportion of the median income needed to meet the median mortgage repayment. According to the report, the current proportion is 30%. This is a drop of 2.4% but 30% is seen as a huge milestone.
According to Damian Percy, General Manager of Adelaide Bank, 30% is considered to be the borderline between a homeowner having or not having “housing stress.” The only states or territories that didn’t see a decrease in the proportion of income it takes to meet mortgage repayments was the Northern Territory, who saw an increase of 0.7%.
In Western Australia, the news is even better. It only takes 22.9% of family income to meet housing payments.
What it Could Mean to You
We see right now as a perfect time to “trade up,” buy your first home or buy your first investment property. Interest rates are low, prices are rising but still affordable and income is high enough to make housing a bit easier. We do not foresee this combination of factors ever being here again. Even if the interest rate is lowered one more time, it may or may not offset the inevitable continuation of the rise in housing prices.
Five or ten years from now, we could easily see people wistfully discussing how great of a year 2016 was to buy a home or to buy investment properties. If you are thinking of buying a home now, don’t “wait a year.” You may find the costs of buying a home considerably higher.
Housing prices tend to go upward. Interest rates fluctuate but their norm over the last 25 years has been much closer to 5% than the current 1.75%. Don’t make the mistake of waiting too long; it could cost you a lot of money.
To learn more or to talk to a mortgage broker, call Smartline Rockingham today: 1300 958 730.