First home buyer delays expected
IT just got a little bit harder to get into your first home, with experts predicting wait times of three months to as much as seven months or more off the latest government cutbacks.
First home buyers in Queensland and ACT should brace for a longer wait to get into their new homes, with 76 per cent of experts predicting the cutting of first homebuyer grants would add three months or more to the time it takes to save a deposit.
Queensland cut its first homebuyer grant by $5000 from yesterday (July 1) while ACT is on track towards complete abolishment of the grant in a year's time.
Even worse, a massive 41 per cent of experts surveyed in the July finder.com.au Reserve Bank of Australia cash rate survey expected the delays to push to seven months or longer off the cutting of FHOGs.
Leanne Pilkington of Laing+SImmons told the survey that "stamp duty exemptions, in lieu of the complete abolition of this tax, alleviate some of the pressure would-be first home buyers are undoubtedly experiencing in trying to accumulate a deposit".
Finder's Economic Sentiment Tracker also saw positivity eroded by 10 percentage points when it came to housing affordability which dropped just 23 per cent in June.
The good news was that experts were unanimous in their belief that RBA would keep the cash rate on hold when its board meets tomorrow, with most experts not expecting any movement on rates from the central bank until 2019.
Graham Cooke, finder.com.au's insights manager said there was little change in the survey from the previous six - "no change coming now and none on the horizon in 2018. Economists' predictions of when a rise will happen have now been almost fully pushed into 2019."
The RBA board's monthly monetary policy meeting decision is expected to be released at 2.30pm Tuesday.