A Bankwest/Mortgage and Finance Association of Australia (MFAA) research report found that 43.8 per cent of potential first home buyers are saving money in case the economy deteriorates. 47.9 per cent are now looking at purchasing cheaper properties that originally planned.
The new report comes as welcome relief after a year where first home buyers were encouraged into taking out loans they couldn’t afford by the Federal Government dangling the First Home Vendors Boost carrot in front of them. The boost was watered down at the end of September and will be removed at the end of the month. 28% of first home buyers said the grant simply over-inflates house prices.
» First Home Buyers Shun McMansions – MFAA, 23rd December 2009.
» McMansions out of favour after grant slashed – News Limited, 23rd December 2009.
» McMansions out of favour after grant slashed – Sydney Morning Herald, 23rd December 2009.