Aussie first home buyers more optimistic and determined to get on the property ladder

Westpac’s latest Home Ownership Report shows three in five (62%) First Home Buyers (FHBs) feel more positive about the housing market than 12 months ago.
More than two in five (45%) FHBs have taken up a new source of income in order to save for their first property.
Westpac launches a new Home Saver Calculator to guide first home buyers on their journey to save for a home.

New findings from Westpac’s 2018 Home Ownership Report show first home buyers are feeling optimistic, with three in five aspiring first home buyers feeling more positive about the housing market than they were 12 months ago. Four in five (81%) of this group also believe buying a home is closer now than it was this time last year.

Launched today, the research surveyed more than 1,400 Australian home owners and first home buyers about their home ownership plans over the next five years.

The report found more than a quarter (29%) of first home buyers are considering buying both an investment property, as well as a home to live, within the next five years .

Lauren Fine, Head of Home Ownership, Westpac said: “This surge in confidence and positivity among first home buyers is great to see, and not surprising considering house prices have on average dipped by 2.7% over the past year to date, primarily driven by the Sydney and Melbourne markets.

“However, despite this optimism, a key barrier to first home buyers achieving their dream home remains saving enough for a deposit and upfront costs.

“We’re seeing more first home buyers find new ways to achieve their dream of home ownership, like seeking a second income or taking on extra hours at their job to help get a foot on the property ladder,” Ms Fine said.

The research found that although three quarters of first home buyers have concerns over the deposit required and upfront costs (which can include stamp duty, settlement, solicitor and pest inspections fees), theystill seem determined to get into the market.

When looking at what buyers will do to get into their first home, the research identified two in five first home buyers are willing to get another job or work overtime to get into the property market. Almost all first home buyers today are willing to make additional compromises to achieve the Great Australian Dream, with two thirds willing to go out less and over half willing to go on fewer holidays .

The research also found that three in five Australian feel they are more ‘financially savvy’ and the same proportion are more ‘financially confident’ since they bought their first home.”

To help first home buyers, Westpac has launched a new Home Saver Calculator designed to help buyers understand how long it could take to save for a deposit. The calculator also enables buyers to explore different options available to enter the market sooner such as Parental Guarantee and Lenders Mortgage Insurance.

Ms Fine said: “We know three in five first home buyers are turning to digital resources to better understand what’s involved in buying or financing a home, so we wanted to ensure they had the right tools at their fingertips.”

“Everyone has different needs and the new Westpac Home Saver calculator takes into account first home buyers’ priorities when saving for a deposit, whether they want to achieve their goal within a certain timeframe, or if they have a purchase price in mind or maybe it’s about maintaining their lifestyle”.

“Buying a first home is an important milestone and we know many home buyers also consider it an exciting experience. The more informed people can be from the start, the better equipped they are to embark on the home buying journey and the easier, and hopefully more exciting, the process will be,” Ms Fine said.

For more information on the Westpac Home Saver Calculator, please visit: www.westpac.com.au/homesavercalculator

Media contacts:

Stephanie Cornell
M: 0466 410 689
E: Stephanie.cornell@westpac.com.au

Mary-Louise Dare
M: 0434 699 605
E: mary-louise.dare@westpac.com.au

About the research

The research was commissioned by Westpac and conducted by Lonergan Research in accordance with the ISO 20252 standard. Lonergan Research surveyed 1,479 Home Owners and First Home Buyers. Surveys were distributed throughout Australia including both capital city and non-capital city areas. The survey was conducted online among members of a permission-based panel, between 10th of August and 20th of August 2018. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics. A house-related action is defined as renovating, selling a home, downsizing, buying a home, buying an investment property or upsizing.

Key trends and findings

Three in five (62%) First Home Buyers feel more positive about the housing market than 12 months ago.
- Four in five (81%) of this group also believe buying a home is closer now than it was this time last year.
63% of First Home Buyers feel First Home Ownership is closer now than 12 months ago.
Three in 10 (29%) First Home Buyers are considering both buying an investment property and a home in the next five years; this proportion has increased by 105% since 2017 (14%).
Three quarters of First Home Buyers are concerned with Deposit/ Upfront Costs involved in their first home purchase (75%; cf. 54% HO).
More than two in five (45%) first home buyers have taken up a new source of income in order to save for their first property.
96% of First Home Buyers are willing to compromise or make sacrifices to achieve their priority activity.
Two thirds (64%) of First Home Buyers are willing to go out less and half (52%) are willing to go on fewer holidays.
Of those who have already purchased their first home, three in five (61%) feel they are more ‘financially savvy’ and more ‘financially confident’ (58%).
To better understand with what’s involved with buying or financing a home, three in five (61%) FHBs are turning to digital resources.

[1] 29% in 2018 vs 14% in 2017.
[2] CoreLogic National Home Value Index, October 2018.
[3] 96% of First Home Buyers are willing to compromise or make sacrifices to achieve their priority activity.
[4] 64% of First Home Buyers are willing to go out less and 52% are willing to go on fewer holidays.
[5] Three in five HOs (61%) feel they are more ‘financially savvy’ and more ‘financially confident’ (58%).

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