First home buyers look for cheaper homes

According to the latest Bankwest/MFAA Home Finance Index, an increasing number of first home buyers are keen to put their foot on the property ladder. Only 19% of renters were happy to keep renting in a bid to maintain their lifestyle.

Bankwest retail chief executive Vittoria Shortt said there had been a strong shift in the desire of first time buyers to get onto the property ladder since the March 2010 Bankwest/MFAA Home Finance Index. “Rising rents have shifted many young peoples’ focus back to home buying.”

They also found that first home buyers were changing their expectations, and were prepared to make trade-offs to enter the property market, like looking further away from the city centre or for a smaller property. First home buyers were also looking for family help with deposits now that the First Home Owners Grant is lower.

The Index showed first home buyers are only too happy to make a range of compromises if it means getting into their home sooner. Nearly 25% are continuing to live at home to save money for a deposit, while approximately 55% believe the current economic climate has led them to look for cheaper property in Australia.