Andrew Winter

After recent announcements by the Federal Government relating to changes to benefits received for higher income earners the question is asked – ‘if it is not so attractive, or less affordable, to buy an investment home – who will continue to supply the rental market with housing stock to keep up with demand from an increasing number of people who cannot afford to get on the housing ladder? Is this a never ending circle that could kill the market?

The answer for home owners, home sellers and people just dreaming about their first home is NO; it will not kill the market.

Anyone who has been involved in the housing industry over several decades will tell you the market always goes in peaks and troughs – we are currently nicely buried in the proverbial trough. However housing values; and that is actually the only element anyone cares or comments about, are affected by far more elements than just the governments latest fads. A popularity, or unpopularity, of an area, location of a home, employment, the home itself, interest rates, lending criteria’s, sellers over optimistic value of their homes
And good old fashioned demand from people just wanting to own their own piece of Aussie soil. These factors all impact on a market that in reality is very, very complex.

MY main concern with all media coverage relating to the housing market and the research and figures regularly quoted is the fact these statements are so general, for every one in a suburb that has made a loss; I guarantee someone in that suburb has made a profit too!! Losses make more dramatic news.

So what state is the Aussie housing market? As far as I am concerned it is a solid market place that is currently very accommodating for buyers ready to grab a good deal, it is not good for sellers who what top dollar and it is tough for people requiring big loans, but hang in there. No one can guarantee you will make a profit on any home but if you don’t initially the secret is to hang on long enough and you will!