Potential first home buyers 'should act now'

Australians who are considering buying their first home should do it now, an expert has said.

Speaking to the Age, Frank Gelber, chief economist with business forecaster BIS Shrapnel, noted that as access to credit becomes more difficult and house prices rise, securing a home loan will only become more difficult.

’’There’s not much you can do about it at this stage; we are not building enough houses,’’ he said. ’’It gets worse from here. From a strategy point of view, if I was going to buy a house I’d buy it now."
The newspaper noted that during the previous decade, Melbourne’s median house price doubled to the high cost of $460,000.

It said that the likely interest rate rises this year and the lack of new housing available across Australia could mean that the proportion of a family income needed to meet home loan repayments will rise this year.

The comments may encourage Aussies to compare home loans in search of the best deals. This week, Loan Market chief operating officer Dean Rushton told the Australian Associated Press that despite the huge rise in the demand for 100 per cent home loans, most borrowers will struggle to secure such loans from the major lenders.

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