First time buyer's dilemma in Australia

Concern is growing in Australia that first time buyers will be edged out of the property market due to further expected rate increase.

There has been a noteworthy increase in first time buyers during the last year possibly due to monetary grants and tax led initiatives but as these inducements are curtailed and with more interest hikes likely it is expected to diminish to more normal levels.

The opinion coming from the Real Estate Institute of Australia (REIA) is that sales are likely to fall off in the lower price range bracket by the early part of 2010. They advise prospective FTB's to consider further interest rises and build them in to their mortgage budget and not to feel pressured into buying a property without due diligence.

Australia has shown a resilient return to financial recovery. A fall has been recorded in unemployment suggesting improved job security and possible wage increases back on the agenda which should help to encourage FTB's to join the real estate parket, albeit at a slower rate.