The vast majority (83%) of first home buyers are reportedly prepared to sacrifice aspects of their lifestyle in order to purchase their first property – and most of those plan to save for just one to two years, according to the 2013 Mortgage Choice Future First Homebuyer Survey.
The annual study of more than 1,000 Australians reveals that, despite rising property prices, one in four future first home buyers are still only saving an average of 10% of their monthly income after tax, similar to 2012 when property prices were on average 8.7% lower.
Mortgage Choice spokesperson, Jessica Darnbrough, says it’s surprising to see homebuyers aren’t saving more, especially given the survey also found that more buyers are concerned by rising prices this year (29% compared to 22% in 2012).
According to the research, 60% of future first home buyers would be willing to miss out on a holiday if it meant they could get on the property ladder sooner.
An additional 24% of respondents said they are happy to delay having children, 19.4% said they would move back in/stay living with parents or in-laws in order to save on rent and 8% said they are willing to move to cheaper share accommodation.
When it comes to concerns around buying a home, 48% of respondents said they are anxious about the length of time it will take to pay off the mortgage, while 47% worry about not being able to afford the repayments - up from 44% and 46% in 2012 respectively.