First homebuyers not rushing this year

First homebuyers not rushing this year

Posted on Thursday, November 15 2012 at 2:09 PM

First homebuyers are ageing and saving longer, according to the 2012 Mortgage Choice Future First Homebuyer Survey.

Of 1000 Australians who plan to buy their first home
in the next two years, 41 per cent will be aged between 30 and 39 years, 39 per
cent will be 18 to 29 years of age, and 14 per cent will be aged over 50 years,
the survey reports.

The increase of first homebuyer numbers aged over 30
years has increased by a staggering seven per cent, from 54 per cent last year
to 61 per cent this year.

The survey also found that first homebuyers intend to
save longer before making a first purchase – up from 1.8 years last year to two
years this year.

Job insecurity also ranked higher in this year’s
survey, with almost one in five (18 per cent) upcoming first homebuyers
claiming this is their greatest concern, the survey found.

On the other hand, fewer buyers are concerned about
missing the boat in rising house price terms – 22 per cent this year compared
to 31 per cent last year. Even fewer first homebuyers are concerned about the
potential for rising interest rates to impact borrowing power – eight per cent
this year compared to 14 per cent last year.

“While many of the economic
indicators such as rate cuts, lower house prices and improved affordability
might suggest now is a good time to buy, people are still nervous about their
ability to sustain employment,” Mortgage Choice spokesperson Belinda Williamson

“Home ownership is still
the dream for many Australians, however it is important to feel confident in
your financial future before taking on the commitment of a property purchase.”

Fifty-seven per cent of first homebuyer survey
respondents claimed that their decision to purchase property was to set
themselves up financially for the future by getting their foot in the door, 49
per cent said it was for family lifestyle reasons, and 42 per cent said it was
to avoid rising rent.

“The overall cost and
financial benefits of home ownership are going to add weight to the decision
but as our survey results show, the more emotional factors such as where you
envisage bringing up your children is very high on the influencing stakes,”
Williamson says.

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