Younger Australians are finding more “out-of-the-box” ways to strategise their entry into the housing market.
NAB’s latest research found several ways and compromises these young buyers are willing to make to be able to achieve homeownership. Here are some of the highlights:
- 40% said they are considering buying with a friend or someone other than their romantic partner.
- Around a third are willing to buy and rent the property out initially.
- Roughly 20% said they would consider moving into a share house.
- The most common compromise buyers are willing to make is the amount they are willing to spend.
- A third of all buyers would trade off the size of the land, garden, or outdoor space, while a little less than the same would give up their preferred locations.
- Only one in 10 buyers are not willing to compromise at all on their wish list.
NAB executive for homeownership Andy Kerr said younger people are not getting anything to hinder them from achieving their homeownership goals.
“Younger Australians aren’t letting meeting a partner or getting married later in life hold them back from owning a home now — people are definitely looking at their options and casting the net wider when thinking about who they could buy with,” he said.
“Interestingly, our data shows that first home buyers aren’t being deterred from entering the property market, despite the market softening overall and rising cost-of-living. Buyers are just thinking outside of the box to make it happen.”
A separate report from BOQ Group Savers found that a third of savers put buying a home on top of their savings goals this year.
And it would seem that buyers are still at an advantage this year, given the current market conditions that put them in a unique position to negotiate on prices more aggressively.
CoreLogic research director Tim Lawless said buyers are no longer facing a sense of urgency to make a purchase decision.
“They can negotiate on price more aggressively — if they don’t secure a price they think reflects good value, they can simply move on to the next property amid persistently declining prices,” he said.
Photo by gritsivoleksandr on Canva.