Reserve Bank’s ‘big miscalculation’ as under 35s priced out of homes
Research undertaken by UNSW has declared home ownership out of reach for young Sydneysiders.
Judo Bank advisor and respected economist Warren Hogan told Jim Wilson the current market is “very worrying” for under 35s.
The NSW government has floated a reform of stamp duty, including a $25,000 grant for first home buyers.
Whilst such a scheme would help some enter the market, “it doesn’t change the fundamental problem” Mr Hogan said.
“The problem is interest rates – they are way too low.
“More importantly, the Reserve Bank is making a big miscalculation in my view, by telling everyone they’re going to remain here for the next three years.”
Home buyers and investors alike are in for a “painful adjustment” when rates increase again, he warned.
Press PLAY below to hear his analysis in full