A healthy demand for property is likely to continue in 2016 despite recent news of a market slowdown.
Increasing variable interest rates and stricter credit policies may have seen property prices drop 1.4% across Australia’s combined capital cities in the quarter ending December 2015, however, a new survey conducted by Yellow Brick Road (YBR) shows that saving for a first home or investment property makes up 40% of Australia’s financial New Year’s resolutions.
“In this current environment, you might expect to see property taking a back seat to financial aspirations such as saving and budgeting or consolidating debts. However, the Australian dream of owning property and the security that comes with it – is still dominant,” YBR spokesperson Lyndsey Douglas said.
Douglas said a cooling in the market will open up the property aspirations of those who may have faced affordability pressures over 2015.
“The property market is changing rapidly with some cooling predicted in previously hot areas. The upside is that it might ease some of the affordability pressures faced by first home buyers as competition from other buyers declines,” she said.
“The challenge though is increased rates and tougher calls by lenders who are having to turn more prospective borrowers down based on their ability to service their mortgage.”
Other top financial New Year’s resolutions were to decrease debts (25%), to budget (15%), save for travel (10%) and get superannuation sorted (7%). Then there was a small percentage that said in 2016 they were going to just enjoy their disposal income (2%).