Housing Industry Association (HIA) economist Harley Dale believes that home affordability will continue to be a problem for 2014, as both economic and financial situations in the country has yet to show any optimistic signs in the previous month’s results. This also came after the Reserve Bank announced its intention to keep the interest rates on hold for the near future.
The latest Affordability Index by the HIA showed that capital cities are experiencing the effects of home affordability, with Hobart homes becoming 9.2% less affordable. Sydney affordability also dropped by 4.4%, followed by Perth at a 2.5% drop and Brisbane at 1%.
Despite these numbers, housing affordability issues for all capital cities cannot be generalized, as investors in Adelaide and Melbourne saw a 5.5% increase in home purchasing capacity. Affordable properties are still available, so ensure that you do your research and consult a financial planner to find the appropriate location of the property that suits your financial capacity.
Read more about this on the Smart Property Investment website.