Mortgage Choice recently conducted an interesting survey regarding first home buyers. Whilst it showed that 83% of first home buyers were prepared to sacrifice aspects of their lifestyle so that they were able to climb onto the property ladder, the majority of them believed that they would only have to save for between one and two years in order to establish enough savings to purchase their first home.
The study covered over 1000 Australians revealed that despite the rising home prices, one in four future home buyers are still only saving 10% of their monthly income. This is similar to 2012 when property prices were around 9% cheaper than they are today. I find it surprising that despite the rising house prices, first home buyers are not saving more even though 29% of them were worried about rising house prices. However, despite not saving more, the first home buyers seem serious in their intent to get into a home.
60% indicated that they would miss out on a holiday to get into their home, 24% said that they would delay having children, and in a really bold move, 29.4% said that they would be willing to move in with in-laws to save on rent. Rather than move in with the in-laws or parents (or have your kids move back into that peaceful empty nest, there are other options such as family guarantees which can allow first home buyers to get into a home with no upfront deposit.
There is also the First Home Owners Grant (FHOG) which gives an incentive of $15,000 to first home buyers as well as concessions on stamp duty. This alone could save you over $25,000 that you would otherwise need. If you or someone you know is looking to buy their first home, we would be very happy to discuss the various options with them.
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.
If you would like any assistance, please give me a call on 02 6363 1122.
I cover the entire Central West of New South Wales, including Orange, Bathurst, Dubbo, Mudgee, Cowra, Lithgow, Cobar and all places in between.