A recent assessment of the Australian residential property market by ANZ has painted a bleak picture for future generations wishing to own their home. After more than a decade of strong economic growth, Australia is in need of houses to shelter its ever increasing population.

It is anticipated the coming years will see a shortfall in the amount of available housing (up to 200,000 residences short throughout Australia) which, combined with a tight rental market will cause property prices to further increase. Adding to the housing availability problem is a tight rental market with advertised rents in NSW increasing 21.6% in 2007. If these current trends continue, demand will outstrip supply in the not too distant future leaving many families stuck paying rent for the rest of their life; a far cry from the great Australian dream of owning your home.

Australia’s chances of slipping into recession over the next coming years seems to be minor, so why is housing affordability at such a low rate? Current market analysis shows that the RBA’s moves to curb inflation involves the increase of interest rates. This leaves many home owners who have maxed themselves to their borrowing potential to suffer mortgage stress and for the unlucky few- lose the family home. So what does this mean for current home buyers? While the current stagnation in the housing market was needed to correct unsustainable growth, now is a great time to purchase.

For many people the only know way of home ownership starts with a deposit of 20% of the total property value. At OwnYourHome.com.au we provide the opportunity to start the home ownership cycle for a fraction of the cost. To find out if you qualify for this programme fill in our registration of interest form and we'll assess your current circumstances.

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Source: http://www.anz.com/documents/economics/Housing Snapshot April 2008.pdf