As our property experts continue to debate whether Australia is in the midst of a pricing bubble, recent research for the Swiss-based Bank for International Settlements (BIS) has revealed that Australian property prices are now higher than they typically have been in comparison to both rental prices and incomes. Corroborating a recent analysis by the International Monetary Fund, the BIS has found that house prices were 50 percent higher than usual when compared with rents, and 40 percent higher relative to incomes.
Property experts up and down the country have described the Australian property market as “overvalued” – little comfort to those seeking to get a foot on the property ladder. A keen observer of Australia’s property market, New Home Group general manager Karl Mifsud commented in a recent interview that: “The state of the market is of no great surprise to those of us with an interest in property, and for two key reasons. First, the supply of new housing is falling well short of demand. Second, the ‘baby boomers’ – the ones looking to sell – typically have a substantial proportion of their money invested in their properties and, understandably, want to sell at a high price in order to fund their retirements; prices that are beyond the reach of the generation beneath them: the ones looking to buy. Affordability and low supply are the two biggest hurdles prospective home owners currently face.”
Home ownership used to be seen as a ‘rites of passage’ for Australians, certainly since the 1950s, but to the financially hard-pressed today, it’s nothing more than a pipe dream.
So what are the alternatives? Some Australians are resorting to renting, an economically sound strategy for those not wedded to the great Australian dream of home ownership. But for the many who view renting as ‘money down the drain’ and who still crave their own home, New Home Group offers a timely solution. Their Home Build Assist scheme is the result of the Group’s extensive expertise within the property market and its considerable leverage in the construction sector; it enables prospective home owners struggling to accumulate the required funds to meet banking criteria for home ownership to take advantage of the unique opportunity afforded through the scheme to instead build the home of their dreams, thanks to a “complete consultation” service which works with clients from financing to build concept to build creation. As Mifsud observes, buyers often struggle to “see the mirrors in the smoke” and get through the ‘red tape’ when it comes to navigating the home build market; but the “hand-holding” nature of the Home Build Assist scheme ensures that prospective home owners are able to avoid unforeseen pitfalls and comply fully with myriad of construction regulations. And it very clearly works: hundreds of hard-working Australians who would otherwise struggle to get a foot on the property ladder are now happily settled in the home of their dreams, thanks to the Home Build Assist scheme.
If you’d like to know more about how the Home Build Assist scheme can help you contact: