While not the top priority, space for a pet is ranked as a higher priority for more first home buyers than proximity to family, new CommBank research has revealed.
When faced with the trade-off, close to two in five (38 per cent) said space for a pet was extremely important when purchasing their first property, compared to just under a quarter (23 per cent) who ranked proximity to family as extremely important.
When looking at the top priorities for first home buyers and what they consider to be important when purchasing a property, the top ranked non-negotiable was property price, with 69 per cent saying it was extremely important for the property to be within their budget. Location of the property (57 per cent) and type of property (52 per cent) were also extremely important, followed by size of the property (41 per cent) and space for a pet (38 per cent).
In addition to understanding the property purchase priorities of first home buyers, the research also looked into what (if anything) first home buyers are willing to give up in order to reduce the time it takes for them to save their property deposit.
The research found that just over eight in 10 (81 per cent) plan to ditch social outings, with nights out, social activities and dates all in the firing line. Further, it seems future Christmas and birthday gifts might be looking a little scarce, with two in five (40 per cent) first home buyers saying they are willing to give up gifts for others to save quicker.
CommBank’s Executive General Manager Home Buying, Michael Baumann, said the research showed that while first home buyers do have their property “wish list”, they are willing to make compromises to achieve their goal of property ownership sooner.
“The ‘Great Australian Dream’ or aspiration of owning a home continues to remain strong among young Aussies who currently don’t own a property, with almost three quarters agreeing buying their first home is one of their biggest financial goals,” said Dr Baumann.
“This desire to enter the property market also means that first home buyers are prepared to be realistic. We found that close to nine in 10 are willing to compromise on their wish list in order to purchase a home sooner.”
When it comes to saving for a deposit, more than three quarters (79 per cent) of first home buyers said they are prepared to cut back on non-essentials to help them save quicker, while seven in 10 (71 per cent) said they would consider following a strict budget. A further 58 per cent said they would access government schemes and just under one in 10 (9 per cent) said they would consider buying with a friend.
“We know that saving for a deposit can be one of the biggest hurdles for first home buyers. However, there are opportunities for first home buyers to enter the property market sooner. In particular, schemes like the Government’s Home Guarantee Scheme, which comprises the First Home Guarantee, the Family Home Guarantee and the Regional First Home Buyer Guarantee, can enable first home buyers to secure their first home sooner and invest in their futures,” Dr Baumann said.
“For those who might consider buying a property with a sibling, partner or close friend, CommBank’s Property Share allows customers to split the cost of buying a home with family and friends while allowing them to retain individual control of their finances, borrowings and repayments.
“When it comes to buying your first home, knowing where to start can be one of the biggest hurdles, so we have a range of tools and tips on our website to help you get started. Most importantly, we encourage any potential first home buyers who are looking to get their foot on the property ladder in the not-too-distant future to speak with their lending specialist or broker to see what finance options and government grants or schemes may be available to them.”
For tools and tips for first homebuyers, visit: commbank.com.au/firsthome
About the research
The survey was conducted by the House of Brand Group, with fieldwork conducted between 29/08/2022-30/08/2022, amongst a sample of n=1,012 nationally representative respondents including n=184 first home buyers, with quotas set on age, gender and location.
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