PERTH’S tanking jobs market is reputed to be the biggest weight on property prices across Perth.
Full-time employment has fallen in WA for the past 21 months, and now stands at 6.3 per cent, with many areas outside of Perth over 10 per cent and rising.
The biggest weight on the property market is the high rate of part-time and casual work that is fast replacing the traditional full-time, 40-hours-a-week work.
In today’s property market, you may get a loan from the bank if you have a full-time job, but you would have no chance on a part-time one.
Simple arithmetic reveals a first-time homebuyer wanting to buy a $350,000 property would need at least a $100,000 deposit on the loan and a parent or relative to go guarantor for them.
For a couple with two part-time or two casual jobs, it will be very difficult, if not impossible, to even find a loan officer to look favourably on their loan application.
With many full-time jobs vanishing, I see this as the biggest constraint on the market of existing properties.
With no growth in full-time work envisaged, we are heading for future generations who will never be able to own their own homes, as their parents and grandparents did.