More than 50 per cent of first time buyers currently in rented accommodation are now finding the shift to homebuying an even greater challenge, up from 38 per cent in March 2010, according to the latest Bankwest/Mortgage and Finance Association (MFAA) Home Finance Index.
Simultaneously, the index revealed there’s been a significant decline in upgraders interested in purchasing property due to the level of debt required, with only 34 per cent of respondents actually feeling it’s a good time to buy a new home, compared to 44 per cent previously.
“Many homeowners are opting to live in their houses for longer, renovating along the way to improve comfort but avoid high debt levels,” said MFAA chief executive officer Phil Naylor.
The Home Finance Index also revealed an increased number of tenants believed rent is too expensive, up 67 per cent from 63 per cent in March.
The number of renters content to continue renting to maintain their lifestyle, dropped down to 19 per cent from 23 per cent in March.
These results indicate a strong desire to shift back towards the property ladder, said Bankwest retail chief executive Vittoria Shortt.
Looking further away from the city centre or for a smaller property are the trade offs these first time buyers are prepared to make, said Shortt.
In contrast to first time buyers, the index has revealed that more homeowners shifting properties are keen to move closer to the city, 38 per cent, up from 24 per cent in March.
Now that the First Home Owners Grant is lower, families are increasingly bearing the weighty request to fund the initial house deposit.
According to the index, compromises first time buyers are prepared to make to break into the real estate market include:
- Nearly 25 per cent are continuing to live at home to save money for a deposit;
- Approximately 55 per cent believe the current economic climate has led them to look for cheaper property;
- More than 42 per cent said they are looking for a smaller property;
- Nearly 20 per cent are prepared to move from the city to the suburbs.
More than 53 per cent of first time buyers are stashing away some savings in the event of economic instability, while homeowners said they would like to put more money aside, a figure up to 55 per cent compared to 35 per cent in March.
Other money saving strategies being considered by homeowners considering a move include:
- Looking for an established property (38 per cent);
- Lowering the mortgage (35 per cent);
- Looking for cheaper and smaller properties (35 per cent and 29 per cent respectively).
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Sunday, October 31, 2010
Thursday, October 28, 2010
City house prices unchanged, growth flat
Sunday, October 24, 2010
Australia’s most affordable suburb records top value in property sales
The total value of property sales across the nation is up by 30 per cent compared with five years ago, according to RP Data.
For the year to July 2010, total property sales amounted to $213 billion, a healthy climb from the same period five years before when total property sales reached $165.5 billion.
While a selection of Australia's most premium suburbs with a median house price well over the $1 million mark have topped the list of 40 suburbs, including Australia's most expensive suburb – Bellevue Hills in New South Wales – surprisingly Australia's more affordable suburbs have also hit the list.
At 27th place is the nation's number one cheapest place to buy, Devonport, Tasmania, with a median price of $250,000 and $62,947,353 in total value of property sales.
These statistics demonstrate increasing demand for dwellings and the growth in the values of property over the past five years, said RP Data senior research analyst Cameron Kusher.
"For vendors, these conditions equate to additional profit to be made from the sale and for property professionals it translates into additional commission," he said.
Of the top 40 suburbs with greatest total value across the nation, 36 suburbs are within capital city regions, while three of the remaining four are regional spots located on either the Gold Coast or Sunshine Coasts in southeast Queensland, said Kusher.
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