First-time investors shut out young couples

UNTIL recent years, first-time house buyers (FTBs) were predominantly young couples forming families and trying to buy a home rather than making a property investment.

Nowadays, the majority of FTBs are actually property investors and it’s their buying activity that is the primary driver of house price inflation.

The easy availability of 100% finance, combined with low interest rates and ever-rising house prices, has made residential property a virtually risk-free investment, where the buyer may put up 0% of the capital cost but gets to keep 100% of the capital gain, tax-free.