First-time house buyers delay the dream
With the property market still hot, first home buyers appear to be heeding the warning signs and putting the quarter-acre dream on hold.
Monday, December 5th 2005, 6:42AM
by The Landlord
The Reserve Bank's efforts to slow the boom by increasing interest rate rises - including a further rise expected this week - appear to be trickling through, and experts says a real estate trough over the next two years is unavoidable.Quotable Value's residential price movement report showed property values rose 14.5 per cent in the 12 months to October, a slight decrease on the 12 months to September. And real estate agents spoken to by the Sunday Star-Times also said the market was cooling.
First home hopefuls told the Star-Times they were reconsidering investment options until the market bottomed. One, magazine sub-editor Mark Broatch, has put off plans to buy for at least six months and has his deposit in a high interest earning account.
"We reckon we've missed the big capital gains over the past decade," said Broatch. "And we've waited this long, what's six months more to see what happens in the market. Plus, it means we can save a bigger deposit".
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