Why October saw the fastest growth of home values in two years | The Business | ABC NEWS

The prospect of getting a foot on the property ladder continues to worsen for first home buyers, thanks to a strong Spring auction season which saw capital city home values climb at the fastest pace in two years.
Now there’s evidence rent-vesting is on the rise, as first time buyers break into the property market as investors.
Mortgage broker George Samios says people are having to buy houses in suburbs they don’t want to live in, so they’re living with mum and dad and buying for investment.
As Nassim Khadem reports, lower interest rates and government incentives for first-home buyers will continue driving people back into the market, with anticipation of at least one more interest rate cut next year.
National prices rose 1.1 per cent in October and 6.1 per cent over the year. The median home value is now almost $873,000 dollars
Perth led the monthly gains, followed by Brisbane, Darwin, Adelaide, the regions, Melbourne, Sydney, Canberra and Hobart.
Cotality head of Australian research, Eliza Owen says a rising number of investors have an edge on first home buyers because many already have some equity under their belts.
“However, about six percent of first home buyer loans that are secured are first home buyer investment purchases, so we’ve created a system where it’s more viable for some people to buy a home, not because they’re going to live there, but to buy it to grow their wealth”, she says.
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