As mortgage brokers, we like to keep current on all factors affecting the housing market in the Rockingham, Kwinana and Baldivis areas. We feel it is our responsibility to provide our clients with the best and most current information possible. Recently, we came upon some new data from the Australian Bureau of Statistics that confirms suspicions we have had about the housing market for a while.
It isn’t a large percentage, but less Australians are becoming homeowners than in 1996. We don’t know why the ABS doesn’t have more updated statistics, but the ones they revealed this month represent a 4.3% drop in homeownership from 1996 to 2011: 71.2% to 66.9%. Worse yet, the homeownership in young families, the 25 to 34 age demographic, decreased by 10.2%, dropping to 42% in 2011 from 52.2% in 1996.
Another statistic of concern: in 1996, 11.1% owned their homes outright. By 2011, that number had decreased to less than 2%.
What it Means to You
We don’t fully know why the numbers are as they are but we do have some educated guesses. There has been a trend for children to stay in their parents’ homes longer, waiting until they are older to purchase their own homes. Also, a generation of baby boomers is beginning to age. Many are downsizing into units. Some move into their children’s homes. Some move into aged care facilities.
Either way, for those who want to become first homeowners, there are a lot of benefits. The Government wants to stimulate the housing and construction industries. In WA, they are doing this by offering a $10,000 First Home Owner Grant. In addition, WA offers the First Home Owner Rate of Duty which is great for new properties but also saves money if you are buying an established home.
Call Smartline Rockingham Today
It may be easier for you to obtain a home loan than you think. To learn more or for a free consultation, call Smartline Rockingham today: (08) 9527 1800.