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Investment Days for FHBs May Be Over Soon

first home buyersPhil McCarroll writes a piece for the website Your Investment Property wherein he writes that the number of first home buyers entering the market as investors is increasing. In comparison to the figures of last year, there is a clear rise in percentage (15.5%), according to a Mortgage Choice Investor Survey.

Owner-occupied properties in desirable locations are too costly

The reason attributed to this ascendancy is the rise in prices along the highly desirable areas. Rather than buying an owner-occupier property in a less desired area, first home buyers are opting to buy an investment property in the more sought out areas.

When the guidelines of the Australian Prudential Regulation Authority (APRA) come into effect, the above percentage may take a beating and first home buyers will most likely return to buying owner-occupier properties.

Change in APRAs guidelines

McCarroll talks about the alterations expected in the investment lending protocols. These changes might see a reduction in the volume of such lending. When this happens, the hardest hit will be the first home investors.

You can read the original article here.

Despite a few smart initiatives and rebates like Grants, the performance of first home buyers has been nothing but disappointing and they are not to be blamed for the paltry show. Any change in market dynamics first hits them hard.

Happy investment days of FHBs

When Chinese investors raid the prestige market (not the territory of the FHBs at all), they feel the pinch, surprisingly, and are all but elbowed out of the property race. APRAs guidelines might come as just another hindrance for the FHBs and stunt their happy days of property investment.