Aussies 'should be creative' to overcome housing affordability problems


Thursday 08 July 2010

Prospective property buyers should rethink their options and develop creative strategies in order to overcome Australia’s current housing affordability problems, it has been argued.

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Sam Carter, sales manager at Mark A. Carter First National Real Estate, noted that recent home loan interest rate rises and tighter lending conditions have led to "increased mortgage stress" among home buyers and owners.

He therefore urged consumers to compare home loans and think more broadly about their options when seeking to get the best deals.

Speaking to the Yorke Peninsula Country Times, he said: "There are plenty of lenders who are willing to negotiate if homebuyers are willing to shop around a little and do a bit of homework themselves. It’s up to the individual to take matters into their own hands and ask."

As one possible solution to affordability concerns, Mr Carter suggested that buyers be more flexible by timing their purchases to coincide with a lull in the market, such as winter, when the market generally slows "and lower demand can potentially tip the balance in favour of buyers".

Meanwhile, new research by Bankwest revealed this week that Australian first-home buyers now take an average of 4.5 years to save up for a 20 per cent house deposit.

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