Almost one in three (32%) first home buyers would prefer to rent than commit to buying a property.
According to the Home Loans Insight survey commissioned by finder.com.au, this has tripled since last year’s survey where just one in 10 (10%) said they would rather rent than buy. There was also an increase in the number of Australians who are staying home, with 14% admitting that it's easier to live with their parents, compared with 10% last year.
Michelle Hutchison, money expert at finder.com.au, said the low interest rates have had little impact on first home buyers.
“Despite the cash rate pause for the 15th consecutive board meeting, it has done little to renew first home buyer activity.
"Our Home Loan Insights Survey found that first home buyers aren’t in a hurry to jump into the property market, with fewer first home buyers planning to save a smaller deposit to get onto the property ladder sooner. Last year, about two in three (62%) were planning to save a smaller deposit to buy a home sooner but now, 41% would buy a property with a smaller deposit.”
Saving enough for a deposit is still the biggest concern for prospective homebuyers, according to the survey. About two in five (38%) said they find it difficult to save. However, this has dropped from the survey results last year, where 51% of respondents said they couldn't save enough for a deposit.
The Home Loans Insight survey was commissioned by finder.com.au and conducted by global research provider, pureprofile. It surveyed more than 1,000 Australians.