First Home Buyers turn to Rentals

A new survey suggests that deposit saving pressures might be forcing Australians to trade first home buyer aspirations for a renting lifestyle.

The finder.com.au Home Loan Insights Survey polled more than 1,000 Australians and found one in three (32%) would prefer to rent than commit to buying a property.

This is a significant jump from the same survey last year, where only one in 10 (10%) said they would prefer to rather rent than buy.

There was also an increase in the number of people living with their parents to cope with financial and housing needs – 14% compared to 10% in 2013.

 

Read more: How to save for a deposit (without depriving yourself)

Saving a deposit remains the biggest challenge for aspiring first homebuyers, with 38% conceding it’s out of range for them. However this figure has improved from last year, when 51% of respondents felt they couldn’t gather a deposit.

The survey showed a positive sign of improved consumer confidence, as fewer Australians are concerned they won’t be able to meet mortgage repayments – 16 percent as opposed to 29 percent last year.

Michelle Hutchison, finder.com.au’s Money Expert says the results are a concern if they represent a longer term trend.

“It’s the lowest level of first home buyers we’ve ever seen,” she says.

“The latest Housing Finance figures from the Australian Bureau of Statistics show the proportion of first home buyers hit a new low of 11.98% out of all home loans financed in September 2014.”

There were 6,339 first home buyer loans financed in September – 1,760 fewer than in September 2011.

“There is still hope for first home buyers who want to get into the property market,” says Hutchinson.

“Property is one of the safest and best long-term investments because it’s likely to rise in value over a long period of time, so it’s worth considering your options.”

 

thanks realestate.com.au and www.finder.com.au