I am sure many of you have read articles referring to the research paper from the Reserve Bank of Australia. The extensive study found the average homebuyer would be better off renting if house price growth slows below its long-term average. I think one key item that has not been taken into account is that homebuyers have the opportunity to renovate, re-create, style and add value.
Even if property prices grow more slowly, my thoughts are that because buyers have the ability to add value with additions and renovations which along with forced savings no doubt puts them in a better financial position in the longer term. Many young people argue that owning a property can restrict their lifestyle. My thoughts…. Have a good life but also buy, own and add value whilst you’re young and energetic.