Aussie homes going cheap

Monday 16 February 2009

Article by Mozo

Homes in Australia are now the most affordable they have been in five years, boosted by the falling interest rates and increased government subsidies.

AAP reports that this presents a solid opportunity for first-home buyers and that a modest home could be purchased by a person with a $70,000 income, which may prompt Aussies to search for low-interest home loans.

Furthermore, the Housing Industry Association (HIA) and the Commonwealth Bank First Home Buyer Affordability index improved by 39.2 per cent to 153.6 points in quarter leading up to December.

This was in comparison to the 110.3 index points for the quarter up to September.

The last time the housing market demonstrated such affordability was in March 2003.

HIA chief executive Chris Lamont said: “For would be first home buyers, conditions have improved significantly and clearly many Australians are taking up the opportunity to get into homeownership.”

Meanwhile, according to The Australian, investment properties are making a comeback and may trigger recovery within the housing market.

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