First homebuyers in rush to buy

Low rates and low property prices are spurring three out of four prospective first homebuyers to enter the property market before 2010, according to the latest Mortgage Choice First Homebuyers Survey

Of the 1,012 respondents who took part in the survey, 76% said they planned to enter the property market, compared to 40% when the same survey was conducted six months ago (July 2008).

The nationwide survey also found that the number of first homebuyers planning to make financial sacrifices in order to purchase their first home has fallen by over 22% to 71%, which suggest they are in a better position to buy.

First homebuyers also have a preference for houses over units or apartments, with more than three quarters (76%) looking to purchase the former, compared to 54% in 2008.

The main motivation to purchase property this year was historically low interest rates (65% of respondents), while 49% said low property prices influenced their decision to buy this year, while a further 35% said rent was too expensive.

Forty five percent of respondents said that the increase to the First Home Owners Grant was 'too good to refuse'.