Increased Percentage Rate Of First Home Buyers

A research conducted by CBA (Commonwealth Bank of Australia) has shown that 91% of First Home Buyers are confident that their dream of owning their own home is already within reach.

The percentage came from a total sample size of 1,012 home loan clients, including non-CBA mortgagors. The result from CBA, which gives an outstanding 91% only means that home ownership is now feasible. The research result has a significant difference in comparison to the research result in the previous year, in which 1 out of 5 Australians or 20% have said that home ownership is not feasible.

First home buyers that are under the age of 30 shows an increased in confidence for home ownership as the result in the previous year jumps from 74% to 89%. It is great to know that the younger generation has more hopes that their Great Australian Dream of home ownership is within reach with a 75% beneficial result compared to the 69% of those who are above 30 years old.

Consequently, this younger generation also believed that buying an investment property can be possible within the next 2 years. Generally, 15% out of the 28% that are ready to buy investment properties have already made their plans for buying one.

CBA also has found out that 31% of established borrowers were also interested in the gradually decreasing house prices.

The CBA’s Executive General Manager for Home buying, Dan Huggins made a statement following the research results:

“Our research shows a large shift in the number of people who now feel the dream of property ownership is achievable. Over 90% 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. This data suggests Australians are taking an increasingly optimistic attitude towards the property market.,” he said.

Mr. Huggins’s also stated that one of the factors that encourage first home buyers to get into the property market is because of the current interest rates and market conditions.

 “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 research results are in accordance with the data submitted by the (AFG) Australian Finance Group brokers which shows 14% of the $13 billion of mortgages in the first 6 months of the current year were for first home buyers. This data is the highest percentage so far since 2013.

At present, 18.9% of owner-occupied homes is consist of first home buyers. The increasing percentage of first home buyers is in effect following the results of the last federal election that happened last May.

Author: Shane