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Ninety-one per cent of mortgagors believe the Great Australian Dream of home ownership is more achievable for first home buyers than ever before, new research conducted by CBA has found.
The findings come in a study of 1,012 home loan customers, conducted by Commonwealth Bank, which found that 91 per cent of mortgagors (both CBA and non-CBA) see home ownership as being more achievable for first home buyers (FHBs) than ever before.
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This is markedly up from last year, when one in five Australians (20 per cent) saw home ownership as out of reach.
Those under the age of 30 are also more positive – with 89 per cent of young people believing home ownership is within reach, up from 74 per cent the year before.
Interestingly, more young people believe home ownership is the Great Australian Dream, with 75 per cent of those under the age of 30 stating it was, compared to 69 per cent of those over the age of 30.
Younger people were also more ready to buy investment properties – with 28 per cent of those under the age of 30 expecting to buy an investment property within the next two years. Overall, just 15 per cent of respondents said they intended to do so.
The report also found that 31 per cent of established borrowers were concerned about falling house prices.
CBA’s executive general manager of home buying, Dan Huggins, commented on the findings: “Our research shows a large shift in the number of people who now feel the dream of property ownership is achievable.
“Over 90 per cent of Australians said property ownership was achievable for potential first home buyers so long as they are willing to make sacrifices with regards to their spending,” Mr Huggins said.
“This data suggests Australians are taking an increasingly optimistic attitude towards the property market.”
Mr Huggins stated that current interest rates and market conditions are encouraging first home buyers to get into the market.
“Interest rates are currently sitting at historical lows and, in many parts of the country, property prices have come off their peak, representing a good opportunity for home buyers to start shopping for a property,” he said.
The findings remain consistent with increasing levels of FHB lending in recent months. Based on data from Australian Finance Group (AFG), 14 per cent of the $13 billion of mortgages lodged by AFG’s brokers in the first six months of 2019 were for FHBs – the highest proportion since 2013.
According to the ABS, the percentage of first home owner-occupiers has been increasing each month since the federal election result. Currently, FHBs make up 18.9 per cent of owner-occupied dwellings.
[Related: FHBs help non-majors hit record high in broker space]
