The Daily Telegraph editorial: It’s a buyer’s market out there for first time homebuyers

Homeowners have held an advantage over buyers for some time and, at one point, property values were increasing so quickly that houses were effectively earning more than their occupants. But, that cycle is now at an end — it’s a buyer’s market out there.

A disaster for some can be a boon for others.

Last month’s huge NSW hailstorm, for example, cost insurance companies tens of millions of dollars and saw many cars hauled away for repairs.

But Sydney panel beaters spent the next few weekends flicking through yacht catalogues and paying off their children’s private school fees.

Likewise, a downturn for Kings Cross bars following the introduction of tighter regulations has caused cash to begin flowing elsewhere in the city.

Reinald Struwig and Natalie Byrne have just bought their first home in Parkway Drive, Marsden Park, after saving for three years. Picture: Monique Harmer.

In the housing market, homeowners have for some time held an advantage over buyers.

At one point property values were increasing so quickly that houses were effectively earning more than their occupants.

That cycle is now at an end. It’s a buyer’s market out there, and the young and thrifty are poised to make their move.

They might be focusing on Granville, where only four years ago a typical apartment ran to about $542,000. That price is quite a reach for someone on an average salary of $86,000, but prices have since fallen.

Throw down a 20 per cent deposit on a $487,000 Granville apartment and you’ll likely be paying an affordable $2000 per month in mortgage costs.

Obviously, this is bad news for property owners in that suburb whose investments are now stalling. Against that, years of concerns over the ability of younger Australians to enter the property market now give way to genuine opportunity.

It’s a buyer’s market out there. Picture: Taylor Adam

As demographer Bernard Salt tells The Daily Telegraph, improved affordability is a welcome change for a generation that may have given up hope of owning a property.

“Prices were rising faster than they could save and faster than their wages were increasing,” Salt points out.

“Young Aussies can get into the market if they have the willpower to save.”

His final line is key. Even in previous eras of affordability, saving is always the most vital element. Just because houses are within reach does not mean they will become available to the financially reckless.

Indeed, some younger Australians may have allowed themselves to spend on overseas holidays and other luxuries in the belief that a house would never be a viable option.

That excuse is no longer valid. If young people really want to buy, it is time now to rein things in and save.

DRUGS ARE NEVER A GOOD CALL

The Daily Telegraph has previously described many so-called music festivals as drug festivals with incidental songs.

That view is evidently shared by young paramedics who have attended these festivals in their professional capacities.

“You know it’s never going to be a good call when it’s a festival call,” paramedic Chenea Roles explains.

As a curious debate continues over potential drug testing, the reality of these festivals eludes many who support such testing.

Those supporters seem cheerfully unaware of the sheer extent and life-threatening recklessness of festival drug use.

ONE JOB TWO PAYMENTS

Certain workers in the live animal export trade are winning both ways.

They are paid for their work. And then they can potentially earn money from animal rights movements for images of allegedly mistreated livestock.

Further to recent revelations about export workers being offered cash inducements, one worker in particular provided images because he was “motivated by money”.

In other emails, the whistleblower central to the live export scandal complained to Animals Australia about receiving only $500 when he expected $2000. According to Animals Australia CEO Glenys Oogjes, everything is above board.

“As the de facto watchdog of the live trade for over a decade — a role the recent Moss Review confirmed — our procedures continue to be completely open to the regulator or any other authority,” she said.

“The people who came forward took a clear risk.”

And received a clear reward. This does not call into doubt those images, but it does justify monitoring of animal rights groups and their practices.

The Daily Telegraph, printed and published by the proprietor, Nationwide News Pty Ltd A.C.N. 008438828 of 2 Holt St, Surry Hills NSW 2010, at 26-52 Hume Highway, Chullora. Responsibility for election comment is taken by the Editor, Ben English.