Most Australians would be happy to make some sacrifice - work harder, play less, or buy a less expensive house - in order to buy their first home, according to the results of a recent survey conducted by a national mortgage broker.
Mortgage Choice National Manager Corporate Affairs, Warren O'Rourke said the research, which focused on those who plan to buy their first home within the next five years, provided a fascinating insight into the lives and mindsets of Australia's upcoming first homebuyers.
"With housing affordability at a low, we knew it would be intriguing to uncover the demographics and inclinations of today's Australian first homebuyer to be," Mr O'Rourke said.
"Some of the results were not anticipated and others serve to strengthen our picture of the typical person or couple and their determination to buy their own piece of this country - the great Australian dream."
The independent online survey asked a range of questions of 1003 Australians who planned to purchase within the next five years.
12 per cent of respondents said they intended to buy within the next six months, 25 per cent within 12 months, 34 per cent within two years and 29 per cent within five years.
Interestingly, Generation Y was the age group least likely to be concerned about not being able to afford repayments (37 per cent) on their home loans. Baby Boomers were the most concerned (47 per cent).
Almost all (95 per cent) the respondents planned to make sacrifices in order to buy a home. The most common sacrifices were cutting back on spending (34 per cent), taking an additional job (10 per cent) or purchasing a less expensive property than desired (14 per cent). Nine per cent said they would sacrifice an overseas trip.
The age group least willing to make a sacrifice was the Post-War Generation, at 14 per cent saying no to changing their life to buy a home. The members of this group who were intending to sacrifice were least likely to cut back on spending (25 per cent) but most likely to move to a cheaper location (11 per cent).
As for having a deposit ready for their home purchase, most respondents were likely to have saved less than $10,000 (39 per cent). Almost a quarter (22 per cent) had saved nothing at all and another 22 per cent had saved between $10,000 and $30,000. A very committed 3 per cent had saved over $150,000.
Of these soon-to-be first homebuyers, 61 per cent will buy the 'traditional' way i.e. with their marital or romantic partner, but a solid 30 per cent will buy on their own. It is a trend that continues to increase.
"The state with the most solo buyers was WA, at 34 per cent which is interesting when we consider that WA now ranks second in terms of highest average house price. VIC followed WA at 31% and, unsurprisingly, the state with least was NSW with 27 per cent said Mr O'Rourke.
"It is also encouraging to see that, given the current housing affordability difficulties for many, a number of respondents will use not so traditional methods to enter the market. Nothing will get in the way of those who want their own home."
Two per cent said they will purchase with a sibling, 2 per cent will purchase with other family members, 2 per cent will purchase with friends and 2 per cent will use their parents as their loan guarantors.
Interestingly, in a country where much is publicised about shortages of land and affordable houses, 56 per cent of respondents said they plan to buy a house and 13 per cent will buy a house and land package.
The states in the house-buying lead were NSW, WA and SA, with 57 per cent for each state following this traditional Australian housing 'dream'. 52 per cent of VIC and QLD respondents chose this type of home.
Nationally, 17 per cent intend to buy a unit/apartment, 9 per cent a townhouse, 6 per cent rural property and under half a percent will start with buying land.
