Trying to buy a new property as a first homeowner is a bit like trying to sneak into a nightclub underage:  NO ENTRY.

According to Domain’s First Home Buyer Report, an average-earning couple wanting to buy an entry-level house would have to put more than a third of their combined income towards loan repayments.  On that basis, they’d already be stranded in mortgage stress territory before they’d even begun their journey.

Of course, property “experts” are claiming that now has never been a better time for “Firsties “.  Lower prices, firmer wage growth, and higher interest accrual on savings should create the perfect climate.  But the numbers don’t lie.

Sure, it’s now easier to save for the deposit in the short term, but it’s the long-term burden of mortgage repayments that’s the killer. Those cunning interest rates might be all smiles for the gushing savings account, but they’ll soon stab you in the back when it comes time to pay down the loan. And that’s not all.  The ever rising cost of living is already eating into precious household funds. So, even getting the initial upfront payment to the vendor is not as simple as it seems.

The proof is in the pudding. January figures report an 8.1% fall in new owner-occupier first home buyer loans.  It’s the lowest it’s been since 2017, despite a flurry of government grants.

Although it looks like it should be a first homebuyers market over the coming months, CoreLogic researchers say it’s too soon to call.

If you’re finding it tough to get into the market, come and chat to us about an easier and much faster way to grow your wealth.  Our doors are always open to prospective investors and our motivation is to help the average Aussie secure a more prosperous future.