First Home Buyers Entering The Property Market Essay

1144 Words Apr 7th, 2016 null Page
First Home Buyers Entering the Property Market

INTRODUCTION

In this report…

Demand Conditions

Demand refers to the amount of a good or service a consumer is willing and able to buy at a given price. Demand conditions have resulted to a “price bubble” that has continued to grow throughout sydney’s property market. this price bubble has been formed due to increasing demand for property throughout Sydney. As a low supply of housing contributes the idea of elevated competition in the housing market. Income in a rising property market is an important variable for first home buyers, as they may be outpriced of the current market due to competitiveness of the market itself. Insufficient funds in order to obtain loans and to cover overall costs will create consistent problems. As rent has continued to grow in cost, the risk of purchasing housing, for first home buyers has become a more attractive and suitable action taken by the population of Sydney, This will influence the current population to consider the choice of “taking the big leap” in order to secure housing. This therefore leads to an increase in overall demand for property pushing prices higher and higher. Taste and preferences create higher costs in certain areas of Sydney. Factors such as coastal living, close proximity of transport, shopping centres, airports as well as close access to the City and facilities will all push housing prices in areas…

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