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Nearly three-quarters of future home buyers expect to rely on government schemes and financial support, according to new data.
Data from Great Southern Bank (formerly CUA) has revealed that the vast majority of future home buyers expect to rely on government or financial assistance when purchasing their next property.
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According to the survey of 1,500 Australians, more than half (54 per cent) of home buyers who had bought a house in the past five years said they had made use of government schemes and financial support when buying their home, or intend to do so when buying their next home. Just 15 per cent said they did/would not.
However, for those planning to buy a house in the next five years, the proportion of buyers seeking to access government assistance (such as grants) to help them buy their house rose markedly, to 72 per cent.
The survey found that home buyers in the Northern Territory and Western Australia were the most likely to make use of schemes and support (100 per cent and 77 per cent) followed by Tasmania (75 per cent), NSW (72 per cent) and ACT (71 per cent).
Home buyers in Victoria were the least likely (60 per cent) followed by Queensland and South Australia (67 per cent).
Despite many home buyers having moved to the regions during the COVID-19 pandemic, only 61 per cent of home buyers said they would buy their next property here.
When asked about the type of location they would seek to buy properties in, the outer suburbs was the forerunner for future home buyers (69 per cent saying they would buy here), followed by the inner-city suburbs (64 per cent).
The central business district (CBD) was the least favoured location for home buyers, with just 58 per cent saying they would buy their next home in city centres.
Noting the figures, the chief executive and managing director of Great Southern Bank, Paul Lewis, revealed that the bank had helped more than 3,000 Australians purchase a home through government schemes such as the First Home Loan Deposit Scheme, with total lending exceeding $1 billion.
He said that the recent expansion of the Home Guarantee Scheme in the federal budget was therefore “welcome news”, given the high proportion of borrowers who would likely seek to access these in future.
“Typically, the government schemes enable buyers to purchase a home with a smaller deposit, often as little as 5 per cent, while avoiding some of the added costs that are typically incurred by borrowers with a smaller deposit – like thousands of dollars in Lenders Mortgage Insurance,” he said.
“The Home Guarantee Scheme is a step in the right direction. If house prices are making it more difficult to buy, that just means all of us – government, banks, and other stakeholders – must work harder to help make home ownership a reality for younger Australians.”
However, Mr Lewis added that “there is still more to be done to address the challenges facing first home buyers”, conceding that there was “no silver bullet”.
“That is why we are talking to political stakeholders to advocate for a range of measures to benefit homebuyers, including support for lending for alternative housing forms such as tiny homes, container homes, and demountables,” he said.
“We also see the promotion of innovative home ownership models, such as shared equity and rent-to-buy schemes, playing a part in helping first home buyers.
“As a customer-owned bank whose purpose is to help all Australians own their own home, this is something we are passionate advocates for.”
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