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Sep 23, 2015 at 10:54 am | 0 Comments
Concerned with the housing affordability issue RBA governor, suggested some things to cop up the home buyers in future.
Mr Stevens told the Parliamentary House Economics Committee there is a “very significant issue of intergenerational equity at work” in the housing market.
He said, “Historically, it has always been the case that the first-time entry into the market is a struggle. It was for me and everyone here. I think perhaps it is a bit more daunting now because the size of the deposit you need to accumulate is larger. That is why we see many families actually helping their children and transferring the wealth through the generations that way”.
According to the RBA, if there will be a proper arrangement and configuration of land, along with all the necessary amenities present at the place then it can lead to solve the housing expensiveness.
Mr Stevens in his statement also clarified the exact cause of regulatory measures. He said, “Cognisant of the risk that very low interest rates may foster a worrying debt build-up, regulatory initiatives are in place to maintain sound lending standards and capital adequacy. hasten to add that the objective of such tools is not to control dwelling prices, but to contain leverage. The evidence is emerging that they are doing their job”.
News Source: www.rebonline.com.au/breaking-news/9557-more-housing-has-to-be-the-answer-says-reserve-bank