Good news for brokers: homebuyer confidence is strong, while graduates could present a new, valuable revenue stream, according to Genworth.
Genworth’s latest research shows homebuyer sentiment at a post-GFC high, while a surprising number of graduate property investors are flooding the market, it said.
“In Australia, we have a very debt-conscious society. In the UK, especially pre-GFC, lenders and borrowers were a lot more gung-ho. Lenders here don't have a big appetite for lending at greater risk," researcher Alan Shields told Australian Broker Online.
The insurer’s bi-annual Homebuyer Confidence Index showed a 2.2% increase in positive sentiment from March 2012, bringing it to 98.4%
More than half of those surveyed believe now is a good time to buy.
It was a very positive assessment of Australia’s homebuyer market, defying several negative assessments by analysts, including BIS Shrapnel, over the past two weeks.
However, Shields said the rise in graduates owning an investment property was one of the most surprising results.
"[We looked at] recent graduates, and the proportion of them that don't own their own home, but have an investment property is 12%. Compare that to the general population, which is around 5%," he said.
CEO Ellie Comerford added Australia had the second-highest rate of younger homeowners, or potential first home buyers, "living with mum and dad."
Meanwhile, when asked about low doc and 90% to 100% LVR loans, Comerford said Genworth did not support them.
"What we saw, post GFC, was a move away from that. But it was largely driven by consumer sentiment," she said.
"At the end of the day, there's still an appetite for people to borrow above an LVR of 80%...we certainly don't support LVRs above the traditional range."