More than six out of ten Australian first home buyers (66%) have joined forces with their partner, family or friend to purchase their first property, according to new research by St.George Bank.
The survey of first home buyers reveals 74% of respondents have found the property they wanted and those who didn’t had to compromise on the location (50%), price (46%) and overall space and size (45%).
Evaluating what properties provide good value was ranked the most difficult process for first home buyers (57%), followed by choosing what suburb to buy in (47%), and working out their affordability (42%).
Ross Miller, General Manager for St.George Retail Banking said the results show that first home buyers are adapting to new ways to achieve the great Australian dream of buying a home.
“Two incomes are better than one so it seems logical for buyers to team up with others if affordability is an issue. By purchasing with your partner, family or friend, you can make buying a house a lot more affordable and share the costs, including stamp duty and valuation fees,” Ross said.
The research indicates first home buyers are aware that now is an ideal time to get their foot onto the property ladder with 76% of respondents stating it took six months or less to find their home compared to 8% who took more than 12 months.
“Record low interest rates make now a good time for borrowers and first home buyers to talk to St.George about their home loan options. St.George has some highly competitive fixed rates on offer for home owners to lock in and have certainty over their financial future,” Ross added.
Summary of Key Findings:
- 33.9% of respondents purchased their property on their own, compared to 66.1% who purchased with their partner, family or friend
- 73.6% of first home buyers found the property they wanted while those who didn’t had to compromise over the location (49.8%), price (45.7%) and overall space and size (45.3%)
- Evaluating what properties provide good value was ranked the most difficult process (56.8%), followed by choosing what suburb to buy in (47.3%), and working out their affordability (41.6%).
- 76.6% of respondents said it took 6 months or less to find their home compared to 8.4% who took more than 12 months
- 42% of respondents plan to live in their property for as long as they can compared to 5% who plan to live in the property for 1 to 2 years
- 60% of first home buyers funded the majority of their deposit through a dedicated savings plan
- The top saving strategies first home buyers used to save for their home are: being frugal with household expenses (60%), cutting back on eating out/entertainment/shopping and holidays (55%), and living with family (29%)
