April 05, 2011 – First home buyers are urged to take part in a “buyer’s strike” by a campaign that is gaining force online. This campaign is made to drive down property prices.
A tax reform lobby group called Prosper Australia has attracted thousands of support online and in the streets for its campaign. The tax reform lobby group also stated that first home buyers should stand aside because they will be the worst affected when property prices fall which is said to be forthcoming.
According to spokesman David Collyer, first home buyers would visage financial ruin when their house prices fell below their debt. He also stated yesterday that the problem is prices of a house has gotten too high that working two jobs and having a good deposit is no longer enough to buy a house in Melbourne.
Meanwhile, the whole property market has relied on first home buyers buying houses so that sellers could cash out and buy superior properties.
Collyer said that without the first home buyers, second home buyers cannot sell or trade up their houses.
Catherine Cashmore, a buyer advocate stated that the issue has caught the attention of many people despite the prices leveling off in the past six months.
Cashmore also added that first home buyers are not in the market of buying houses for sale at this moment due to the outrageously high prices of houses which they can’t afford.
According to Chris Richardson, of Deloitte Access Economics, the high house prices in Australia are the result of 20 years of economic growth without a recession.
A decline of 2 percent in the prices of houses across the state in the September quarter is shown in the latest report of the market released by Victoria’s Valuer-General. A number of the chief falls were in the up market suburbs such as South Yarra.
