Almost one-third of Australians will celebrate their 40th birthdays in rented accommodation, according to new research.
Mortgage brokerage firm Mortgage Choice found that about 28% of Australians will be 41 years or older at the time of purchasing their first home. Survey respondents cited the inability to save up for a deposit (33%) and the incapacity to keep up with loan repayments (26%) as the main roadblocks in getting into the property market.
Nearly all participants (95%) expected to make sacrifices in order to be able to afford their first home and prepare for interest rate rises, including purchasing less expensive property than they first desired and possibly taking up a second job.
Two out of five participants reported having saved less than $10,000 for a deposit, while 22% had saved nothing. Victorian and NSW residents were among the most determined to save, with 12% having saved more than $60,000.
One in three respondents (33%) revealed they're planning to buy their first home alone, while two-thirds (60%) will buy their first property with their marital or romantic partner.
The report also found that homebuyers' level of knowledge on the property buying process remains relatively low, with one in five respondents admitting they have 'no idea' and about three-quarters acknowledging they have 'some idea'.
"The lack of knowledge of borrowers is a case in point for reputable mortgage brokers being a useful resource for information, tips and a broader view of the mortgage maze than just one lender can provide," explained Warren O'Rourke, national manager corporate affairs, Mortgage Choice.