October 14, 2013
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.
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.
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.
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.