3 Fears Of The First Home Buyer in Australia.
06/02/09 09:08 AM
One of the
biggest fears of first home buyers everywhere, is
that they may never get on to the property ladder
at all. This is a real social stigma in Australia
where 70% of people own, or are buying their own
homes.
The Federal Government’s ‘First Home Owner’ grant that was increased in October 2008 has encouraged a flood of calls to mortgage brokers. Young hopefuls are looking to take advantage of the grant to make that first big step toward a place of their own.
Unfortunately the grant ends on June 30th 2009 although mortgage brokers are lobbying for a six-month extension of the grant. There was very little interest in first home buying through 2008 until the grant went up. So it was just the reassurance and encouragement that first home buyers needed to overcome their reticence.
The Federal Government’s ‘First Home Owner’ grant that was increased in October 2008 has encouraged a flood of calls to mortgage brokers. Young hopefuls are looking to take advantage of the grant to make that first big step toward a place of their own.
Unfortunately the grant ends on June 30th 2009 although mortgage brokers are lobbying for a six-month extension of the grant. There was very little interest in first home buying through 2008 until the grant went up. So it was just the reassurance and encouragement that first home buyers needed to overcome their reticence.
A second
equally large fear for first home buyers is the
fear of failure. The fear of making a big financial
mistake that could end up in bankruptcy and
foreclosure. Clare McGrath a 28-year-old laboratory
manager put it this way.
“Dave and me have wanted a place of our own for years now and have been saving towards it. But how safe were our jobs and what could we afford? How far should we stretch our budget to get a home we would love? The mortgage market can be very confusing and frightening to first home buyers who will probably only buy 2 or perhaps 3 houses in their lives.
Clare again explains. “We did well in finding a mortgage broker who understood our situation and took us through a very complete and interesting financial health check. He helped us look at our incomes and expenses. He gave us good estimates of our mortgage repayments based on our ability to service a home loan. He took into account all of our assets and liabilities and our precious deposit. We had never realized before how much our mortgage depended on so many things”
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“Dave and me have wanted a place of our own for years now and have been saving towards it. But how safe were our jobs and what could we afford? How far should we stretch our budget to get a home we would love? The mortgage market can be very confusing and frightening to first home buyers who will probably only buy 2 or perhaps 3 houses in their lives.
Clare again explains. “We did well in finding a mortgage broker who understood our situation and took us through a very complete and interesting financial health check. He helped us look at our incomes and expenses. He gave us good estimates of our mortgage repayments based on our ability to service a home loan. He took into account all of our assets and liabilities and our precious deposit. We had never realized before how much our mortgage depended on so many things”
Full Story