First home buying in Australia seems to be increasingly becoming a team effort according to new research from St. George Bank.
A recent survey by the bank has revealed that 66% of people who bought their first home in the 24 months prior to January 2016 did so in conjunction with their partner, a family member or friend.
With a number of areas in Australia experiencing strong capital growth in recent years, St. George Bank retail banking general manager Ross Miller said it was logical that buyers are looking for ways to make entering the market easier.
“Two incomes are better than one so it seems logical for buyers to team up with others if affordability is an issue,” Miller said.
“By purchasing with your partner, family or friend, you can make buying a house a lot more affordable and share the costs, including stamp duty and valuation fees,” he said.
The increased willingness to team up seems to be having other advantages for buyers as well, with 74% of respondents saying they were able to find the property they wanted.
For those who didn’t find their dream home, location (50%), price (46%) and space (45%) were the most common areas in which respondents said they had to compromise.
First time buyers seem to also realise that current low interest rates make now a good time to buy, with a large proportion not wasting anytime on their house hunt.
Of those surveyed, 76% said it took six months or less to find their home compared to 8% who took more than 12 months.
“Record low interest rates make now a good time for borrowers and first home buyers to talk to St.George about their home loan options. St.George has some highly competitive fixed rates on offer for home owners to lock in and have certainty over their financial future,” Miller said.
While many of the surveyed first home buyers claim they found their ideal home, that doesn’t mean they plan to be there ever.
Forty-two per cent of respondents said the plan to live in their property for as long as they can, while 5% said they plan to live there for one or two years.
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