October 08, 2013
While 83% of first homebuyers say they are prepared to sacrifice aspects of their lifestyle in order to get onto the property ladder, the majority only plan to save for an average of 1-2 years before buying, according to the 2013 Mortgage Choice Future First Homebuyer Survey.
The annual study of more than 1,000 Australians revealed that despite rising property prices, one in four future first home buyers are still only saving an average of 10% of their monthly income after tax-similar to 2012 when property prices were on average 8.7% lower.*
Mortgage Choice spokesperson Jessica Darnbrough said it is surprising to see homebuyers aren't saving more, especially given the survey also found that more buyers are concerned by rising prices this year at 29% compared to 22% in 2012.
“If Australians are serious about getting on the property ladder, they need to knuckle down and start saving a deposit sooner rather than later,” Ms Darnbrough said.
“Of course, this doesn't mean that you need to cut out all of life's little luxuries – If you put a savings plan in place and set realistic, achievable goals, you should be on your way to home ownership in no time!”
According to the research, 60 per cent of future first home buyers would be willing to miss out on a holiday if it meant they could get on the property ladder sooner.
In addition, 24% of respondents said they are happy to delay having children, 19.4% said they would move back in/stay living with parents or in-laws in order to save on rent and 8% said they are willing to move to cheaper share accommodation.
When it comes to concerns around buying a home, 48% of respondents said they are anxious about the length of time it will take to pay off the mortgage, while 47% worry about not being able to afford the repayments - up from 44% and 46% in 2012 respectively.
“Making sure you get the right home loan for you and your needs is extremely important. A mortgage broker can do the leg work for you by thoroughly researching the market, helping you get the most suitable loan for your circumstances,” said Ms Darnbrough.
“The combination of historically low rates and competitive offerings from Australia's lenders is extremely appealing for anyone considering purchasing property in the near future. By looking at your purchasing options now, you may be able to get ahead of the speculative rising property prices, and secure a good deal.”
*Statistic sourced from RP Data
About the survey
The Mortgage Choice 2013 Future First Homebuyer/Recent First Homeowner Survey of 1,000 Australians who were looking to purchase their first home in the next two years or who bought their first home in the last two years ran online in September 2013.
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.