Sarah Megginson, senior money editor at Finder, said the rapid rise in property prices, sales above advertised price guides and stiff competition had proven to be a challenge for early home buyers.
“For some people, it is a multi-year situation; they have several years of savings, then the process of looking for properties and trying to find one that fits, ”Megginson said.
The first home buyers face stiff competition. Credit: Peter Rae
According to the report, of the first 1,100 home buyers surveyed, only a quarter had bought or planned to buy with a deposit of 20 percent or more.
Of the 372 respondents who had already bought, in April, more than a third had exceeded their initial budget.
A previous investigation found that first home buyers would take 11.4 years to save a 20 percent deposit for a home that cost $ 738,975, the national average in March, according to the latest ANZ CoreLogic Housing report Affordability. This represents a family income savings rate of 15 percent annually.
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But the prospects of first home buyers are changing. Australia’s average home value has fallen for two consecutive months and is expected to fall even further as consecutive interest rate hikes reduce borrowing power and increase mortgage repayments.
Although competition and prices had eased, Megginson said it was unlikely to help first-time home buyers buy much faster because rising interest rates reduced the amount they could ask for in loan. He encouraged early home buyers to take their time looking for the right home and to get a pre-approved loan first so that they have a firmer budget and do not risk delays in financing.
Sydney real estate agent Jackson Cox of Richard Matthews Real Estate said most of his first customers buying homes in the west interior had been looking for six or 12 months.
“I think it will be easier for them to buy, but I also hope they are more apprehensive,” he said, adding that rising interest rates and falling property prices could make first-home buyers they are even more nervous to make the wrong purchase. decision.
Cox said stiff competition and prices last year had made it difficult for first-home buyers. They also tended to take longer to adjust their wish list of properties to their budget and were more likely to make the mistake of investing too much in one property and risking losing others.
First home buyer Jasmin Kelaita, 34, is among her recent clients. He bought a two-bedroom apartment in Croydon Park with his partner, after about six months of searching.
The first home buyer, Jasmin Kelaita, spent about six months looking for her first property. Credit: Dean Sewell
Their search began in Ashfield and Summer Hill, then expanded to the inner suburbs of the west and west, Kelaita said, and they chose to prioritize quality over location.
“They quickly took a price off all the areas we wanted … and the places we were looking at when we were going to auction would be $ 150,000 above the guide,” he said.
“We would go to seven or eight different views every weekend and see nothing.”
If they hadn’t secured a home the week before their pre-approval expired, along with their place in the first home loan deposit plan, they probably would have rented for a few more years.
“Honestly, I think [we were able to buy] because the market calmed down; because people were a little worried [rising] interest rates, the auctions weren’t as busy as we thought. “