First-time buyers should be given access to their superannuation funds to allow them to afford to buy a house. That’s the suggestion of former Prime Minister Paul Keating who was speaking at an investors’ conference last week. He made the suggestion following figures in August that showed first-time buyer activity was at a 15-year low. Under current legislation most people have to be 60 before they can access retirement funds unless they fall into exceptional categories. With rising property prices, especially in Sydney and Melbourne, first-timers are struggling to get on the property ladder at a time when lower mortgage interest rates should be making it easier.
Townhouse development will open up posh suburb
The College Park suburb of Adelaide is generally only affordable for those who can secure well above $1 million – but a new development is set to change that. While the median house price in the area is $1.8 million a development of 50 townhouses being built on derelict land will be around $670,000, making home loan repayments more affordable for young professionals.
Is Melbourne growing too big and too tall?
There’s a boom in construction in Melbourne which is great news for the building industry and those who are looking to move to the city, but is it being done in the best way? Critics of the current trend for high-rise apartment blocks say that the towers are packed with small living spaces and that the density in the city will lead to a lack of amenities and the erosion of communities. Those who are very much in favor of the increased development point to the demand; Melbourne’s population is set to almost double in the next 40 years and lack of supply will do nothing to help with affordability. It is also noted that the extra population being attracted to the city because of the availability of apartments is a boost to the vibrancy and economy.
Homeowners frequently better at managing debts
Figures from the Australian Financial Security Authority show a greater number of people are entering into debt arrangements with lenders, having found themselves living beyond their means. Personal loans and credit card debt are among the biggest problems and young Australians with high-flying jobs are often the ones getting into unmanageable debt. Roger Mendelson who runs Pruska Fast Debt Recovery says that it is not usually homeowners that run into trouble as they need a certain amount of discipline to save for a deposit and to stick to repayments on their home loan.
Collections: Mortgage News