NSW first home buyers borrowing $300K
The size of the average mortgage taken out by first home buyers in NSW has grown by $50,000 to $299,000 in less than a year.
The federal government claims that its boosted first home buyers grant is stimulating the housing market but experts warned of the potential danger of a housing bubble as young couples take on loans they will struggle to maintain.
First-home buyers are taking out a record 28 per cent of the value of all home loans, Bureau of Statistics figures released yesterday showed.
Julian Disney, an affordable housing expert from the University of NSW, said the surge in borrowing runs the risk of overinflating the lower end of the housing market.
“We have just got to make sure that we don't get a recovery on the back of over-extended young couples.”
Source: Sydney Morning Herald