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Best countries for first-time home buyers
Over the past few years, it has become increasingly difficult for young first-time purchasers to enter the real estate markets. As a result of the 2008 finance crisis, real estate inflation slowed, but in most markets it remained well above the increase in wages. Regrettably, the study found that those economies with the highest real estate rises had the lowest rate of increase in net income, with some wages falling and housing rates soaring.
At the same time, the highest paid economies were enjoying shrinking or even falling house values, making them the best places for first-time purchasers. The UAE took first place, where in 2016 mean actual salaries received a push, while the country's housing markets recorded a loss in value of -7.96%.
Recent strong declines in property values in some of the country's hot spot towns suggest that the housing price vulnerability is narrowing much faster than in other global geographies. Singapore also ranked among the top five for the first time, with wages rising by a whopping 3.7%, but housing costs fell further by 3.37% after the federal administration intervened to slow rising housing costs.
The Turkish economy has become one of the worst climates for promising home owners, with house values skyrocketing by over 16% in 2016 and incomes rising by a meager 0.6% in actual terms. Turkey's strategically positioned position as a "bridge" between East and West makes it a top class destination for overseas investment, pushing up house values and making them totally prohibitive for the ordinary citizen.
No wonder that the British residential sector has grown disproportionately in recent years due to the flat rate of inflation and the rampant rise in real estate prices. By 2016, the costs of a home had risen by an annual mean of 5.7%, while salary increases were only moderate at 2.3%.