Humble Home Buyers

Realmark managing director John Percudani provides the following comment in light of Premier Colin Barnett’s views that first home owners need to take on a more modest approach in their home ownership expectations.

There appears to be a right of passage way of thinking among first home buyers, who believe they deserve or are expected to have the standard 4x2 home. But is this actually what they really need? Or are people buying into a social stereo type by buying the house that they think meets others expectations?

The fact of the matter is that many first home buyers cannot afford the homes that many of them are securing and as a result their lives are being put into disarray by being faced with a debt that they can not financially manage.

And this cost does not just stop at the mortgage payments. As many first home buyers quickly find out, it also involves the ongoing costs of maintaining a home, paying rates and energy. Even increased building costs relating to green considerations are increasing housing building costs with questionable returns.

The Federal Government’s first home buyer post GFC incentive merely distorted the market stability and lured buyers prematurely into the market resulting in more loan defaults further down the track.

As a society, Western Australia needs to make a change to the housing supply and the structure of homes to offer first home buyers something they can afford.