One of the main responsibilities of any mortgage broker is to keep up to date on anything that affects the housing and finance markets. At Smartline Rockingham, we are dedicated to ensuring that you find the right home loan with the best possible terms and the lowest possible interest rates.
Consequently, we are always reading about housing prices and interest rates. One of the common themes for the last few years has been a “housing affordability problem.” While we aren’t saying it is easy for a lot of families to buy a home, we don’t think the ability of Australians to afford their own homes is out of line when compared to other countries and when compared to our history.
Recently, we found a piece by the “experts” on switzer.com.au that agrees with our general perception of the housing market. We would like to provide a few highlights.
According to a global 2013 study, our home ownership rate is close to 70%. That is slightly higher than the US, Canada, France and Great Britain. It is squarely on the desirable portion of the “Bell Curve,” which would be between 60-80%.
While our home prices in proportion to our income is higher than in past years, that has been more than offset by the ability of many to put down as little as 5% to secure a loan, when the number used to be 20%. Home ownership actually begin to decline in the 1980’s, which was before other financial indicators began to decline. This indicates a choice of lifestyle more than an “affordability problem.”
If there is a “problem,” it’s that we choose to live in large urban areas. More of our land is at a premium than in other countries or than in the past.
In other words, we’re doing fine.
To learn more or for a “mortgage checkup,” call a mortgage broker at Smartline Rockingham today: (08) 9527 1800.