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Speaker 1: Good news on housing. One, it is still a buyer's market,

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Speaker 1: and to a good chunk of the buyers a first

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Speaker 1: time is now. It's the debate we should at least

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Speaker 1: acknowledge that has been for now partially solved. Not long ago,

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Speaker 1: you might remember we were where Australia currently is. Young

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Speaker 1: people could not afford a house, and with plenty of emotion,

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Speaker 1: it was suggested they never would. That was naturally factorily

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Speaker 1: true then and it most certainly isn't now. What is

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Speaker 1: helping is a couple of things. One, the slow rise

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Speaker 1: of prices as we move out of the recession into recovery.

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Speaker 1: The capacity for the wider economy to grow without major

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Speaker 1: house price increases is actually a good debate or question,

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Speaker 1: but one for another day right now though. Two. The

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Speaker 1: other thing that's working is lending. There's a lot of

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Speaker 1: it for first timers. Money attached to small deposits is booming.

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Speaker 1: The reason that's happening is because the Reserve Bank loosened

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Speaker 1: the debt to income rules as well as the LDR,

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Speaker 1: so with less than twenty percent you can get into

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Speaker 1: a home. Australia they've got a better system. The government

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Speaker 1: backed some people into homes with five percent. It's income related, yes,

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Speaker 1: And in Australia there is an attached argument around price increases,

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Speaker 1: given they are building homes and immigrations booming. But here

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Speaker 1: we don't have those problems sadly. But of the two

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Speaker 1: problems young people face one deposit two the price of

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Speaker 1: a house and therefore the mortgage, it's the deposit that's

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Speaker 1: the biggest turtle. I mean, twenty percent of eight hundred

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Speaker 1: thousand dollars is one hundred and sixty grand. Saving that

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Speaker 1: sort of money is ruinous to dream. So the sooner

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Speaker 1: we get past that as a hurdle, the better a

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Speaker 1: mortgage can be managed. But what is most important about

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Speaker 1: all of this is the indisputable truth that housing is

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Speaker 1: a key we dreams, if not an obsession. A house

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Speaker 1: is a retirement plan. The arguments around putting your money elsewhere,

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Speaker 1: spreading the load, spreading the basket, all of that it

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Speaker 1: falls largely rightly or wrongly, on deaf ears. If I

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Speaker 1: had my way, five percent would be the key ten max.

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Speaker 1: If young people have been locked out of housing, it's

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Speaker 1: not the price that's been the killer. It's been the deposit.

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Speaker 1: The Reserve Bank rules have been yet again another of

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Speaker 1: their mistakes. These new stats hopefully are partial rectification. For

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Speaker 1: more from The mic Asking Breakfast, listen live to Newstalk

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Speaker 1: set B from six am days, or follow the podcast

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Speaker 1: on iHeartRadio