First home buyer's report snapshot
Key findings fromm the Genworth first home buyers report
Last year, Genworth surveyed over 3,000 recent and prospective first home buyers to understand what they think about the housing market. The report uncovered several interesting insights into the first home buyer, who make up a quarter of all home buyers.
First home buyers are ready to enter the property market
Majority of first home buyers believe it is a good time to buy. These home buyers are motivated by their life stage, falling house/apartment prices and low interest rates. Customer sentiment indicates more prospective first home buyers will enter the market soon, as these buyers are waiting for the housing market to moderate.
Buy now, with or without a deposit
Increasing numbers of prospective and recent first home buyers are purchasing property without a 20 per cent deposit. First home buyers are buying quickly, with most recent first home buyers purchasing a property in less than six months. This is shorter than what prospective home buyers imagine it will take to buy their first home.
Friends, family and schemes to buy a house faster
Most first home buyers didn’t completely fund the deposit for their first home. Using family assistance to supplement a deposit is a common strategy.
For those doing it alone, some are considering using government schemes. Due to the finite amount of grants and specific conditions, LMI may also be used for first home buyers wanting to buy their first home sooner.
Investment properties: the new first home?
Investment properties are increasingly favoured by prospective first home buyers, particularly those in Sydney. One in 10 recent first home buyers use their first property for investment rather than to live in.
Short-term ownership an emerging strategy
First home buyers now plan to own their homes for nearly half of the time of the national average. Trading-up allows home owners the chance to enter the market quickly and then move up to a more desirable home once they have built enough equity to sell at a profit.
Genworth has responded to dynamic market conditions by developing new product offerings that provide more options and greater flexibility
Apartment living on the rise
First-home buying applies more to apartments than houses in Melbourne and Sydney. The most common property type in these two cities is a small apartment. Outside of these two areas, small houses are still the most popular property to buy.
The importance of media
Digital media is a tool that first home buyers use to understand the property market. A third of first home buyers used the internet as their primary source of information on understanding property.