The threat of future interest rate rises and escalating petrol prices are not deterring first home buyers, according to the latest MIAA/BankWest Home Finance Survey.
The Reserve Bank's announcement last week that interest rates would remain on hold was an additional boost to home owners' confidence, although 56 per cent of those surveyed expect rates to rise in the next quarter.
The survey shows interest rates, falling house prices, petrol prices and employment law changes are not deterring over 60 per cent of potential first home buyers who expect to enter the market within the next three years.
Chief Executive Officer of the Mortgage Industry Association (MIAA), Phil Naylor, said the findings indicate a promising outlook for the housing market, which appears to be rebounding from its low point in 2004.
"Those interviewed who intend to buy their own house or unit are obviously not being scared off and are determined to buy rather than remain renters," Mr Naylor said.
When it comes to owning a home, the survey found most first home buyers are excited about the prospects of renovating to their taste (89 per cent), feeling financially secure (75 per cent), and having a stable family home (68 per cent).
Many first home buyers agree that home ownership has more advantages than renting (64 per cent), with 68 per cent agreeing that there are many restrictions on renters, such as not being able to have pets.
BankWest Head of Broker Sales Phil Colton says: "Today's first home buyers are aware of the benefits of owning a home and while many are naturally concerned with the level of debt involved, 68.5 per cent believe the ability to one day own your own home outweighs the commitment of a mortgage.
"The survey also indicates that many first home buyers are financially independent - more than half (52 per cent) said they would not rely on family support mainly because of the sense of achievement of doing it on their own and without any strings attached."
Mr Naylor said the survey findings reflect the recent housing finance figures released by the Australian Bureau of Statistics, which show the number of first home buyer commitments are at their highest level since March 2002.
