Borrowing capacity tops the list of what's most important when purchasing a home, according to new NAB research out today.
More than eight in 10 property professionals (82%) surveyed in the latest NAB residential property survey said the amount buyers were prepared to borrow to buy was the biggest factor, up from 74% a year ago before interest rates started rising.
The survey also found:
· The old adage of 'location, location, location' continued to hold true for many with six in 10 (60%) highlighting good local shopping, restaurants and other amenities as key.
· House size was increasingly important (57% up from 50% in 2021).
In contrast, fewer highlighted buying a house instead of an apartment (45% down from 53%), land size (44% down from 52%), having a work or study area (21% down from 26%) or being in a regional area (16% down from 21%) as key considerations.
NAB Executive Home Ownership, Andy Kerr said the market is starting to see a shift as Australians consider affordability in a rising rate environment.
"A trend we are seeing emerge from the pandemic is more Aussies considering apartments over houses for the first time since the survey began, driven by return to office working and caution on borrowing amounts," Mr Kerr said.
"Affordability and rising interest rates are absolutely part of the equation for home buyers. In a rising rate environment, where people are uncertain on when the rising rate cycle will end, Australians are more cautious on what they can afford.
"In terms of being able to pay a loan, it's important to remember that banks ensure customers can appropriately manage their repayments should interest rates rise.
