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ISCOVER
Staff Reporter
While a majority of first home buyers believe now is a good time to buy, it seems many are reluctant to do so, with just 17 per cent saying they will purchase within the next three months.
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According to the national RAMS First Home Buyers’ Pulse Check survey, three in four first home buyers say now is a good time to buy.
RAMS chief executive Melos Sulicich said the results suggest first home buyers are taking a “wait and see” approach when it comes to property, preferring to take the time to research the market.
“Although many first home buyers say the time to buy is now with interest rates recently coming down and property prices relatively stable, the days of Government incentives that drove sizzling hot demand and frenzied purchasing decisions amongst first home buyers are definitely over,” Mr Sulicich said.
“Good deals are out there for first home buyers but a general lack of confidence to take the first step may see some miss out on their ideal property to savvy investors.
“Buying a first home is one of the biggest but also the most rewarding decisions Australians can make so it’s important to have the right balance between weighing up your options and jumping in,” he said.
“Interestingly, the most important factor when choosing a first home is “good value” (7.7 out of 10) followed by proximity to transport, shops and lifestyle (6.8 and 6.7 respectively). FHBs have told us they are less likely to be influenced by an emotional connection to a property or a prestige location, (4.4 and 3.8 respectively).”
Since the launch of the annual RAMS FHBs Pulse Check Survey four years ago, the profile of the typical first home buyer has evolved.
According to Mr Sulicich, first home buyers are more likely to delay their first purchase to their mid to late 20s, reside in a capital city and be employed full-time with high incomes.
There has been a steady increase over the years of FHBs saving 50 per cent or more of their household income towards a home deposit, possibly suggesting that higher property prices are leading to a greater savings burden over time.
The 2012 RAMS survey shows those people living with family say they are more likely to be able buy a home within three months due to financial support and backing, compared to those who are renting.
About 70 per cent of first home buyers are renting and 26 per cent are living with parents or other family members to get a head start into their first home.
