Majority of future first homebuyers only intend to save for 1-2 years
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.*
Local Mortgage Choice mortgage broker Melissa Jackson 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,” Melissa 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 Melissa.
“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 want to learn more about your home loan options, call 0405 315 227, or log onto www.mortgagechoice.com.au/melissa.jackson.
For further information or to arrange an interview, please contact:
0405 315 227
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.
About Mortgage Choice
Mortgage Choice has sourced a home loan for well over 350,000 people since 1992. It works with all manner of property finance borrowers via hundreds of franchises.
The company writes one home loan every 15 minutes in Australia by providing professional guidance on, and choice of, products offered by an extensive panel of leading lenders. Many of its brokers provide a broader service, helping customers source commercial and personal loans, asset finance, deposit bonds and providing referrals for risk and general insurances.
Uniquely, Mortgage Choice pays its franchisees the same commission rate for home loans they write, regardless of rate paid by the lender a new customer selects, working in the customer’s best interests to tailor a solution to them.
To cater to the growing needs of our customers, Mortgage Choice soft-launched in October 2012 its new financial planning business. Mortgage Choice Financial Planning will officially launch in FY14.
The company has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Recent recognition: 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited, a fully owned subsidiary of Mortgage Choice, holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Visit www.mortgagechoice.com.au or call customer service on 13 77 62.