Thank you for pointing out another permabull fallacy for me to...

Thank you for pointing out another permabull fallacy for me to debunk.

That is the one about first home buyers suffering, but who really cares? Everyone else sails along buying their Cottosloe beach pad, or whatever their dream house may be.

If you remove first home buyers from a market, you set off a chain reaction that gradually works its way through the rest of the market. The perfect example of this is Perth right now.

Eg I'm a first home buyer, and bought in Maddington. I want to move to Canning Vale. However, because affordability is so poor in Perth, there's no first home buyers, and sure as hell no one else wants to live in Maddington.

Consequently, the Canning Vale vendor doesn't get a sale, which means the Rivervale vendor doesn't get a sale, which means the South Perth vendor doesn't get a sale.

IMO, the section of the market that is really hurting at the moment is the real blue chip areas...Peppie Grove, Cott, whatever. It's simplistic to say that's because of affordability issues, but it illustrates my point.

First home buyers are an extremely important sector of the market - ask Warnie if you don't believe me. You can't just nobble these people and think everything is going to be ok.

Affordability is a big issue for everyone, including asset rich middle age property speculators.