First Home-buyers and Generation-Y lead the charge with Foreign-buyers
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First Home-buyers and Generation-Y lead the charge with Foreign-buyers
According to the results of our annual Housing Affordability Sentiment Index (HASI) 60% of Australians believe their household savings are better now than in 2012.
HASI figures show 77% of home owners who were hoping to buy another property also wanted to travel overseas in the next five years.
HASI tests Australians sentiment towards housing affordability by measuring four key areas which impact attitudes towards the property market. These are:
· Experience of financial position
· Experience of affordability
· Outlook on financial position
· Outlook on affordability
First homebuyers and Generation Y are driving the surge in positivity in the HASI report despite changes to grant and incentive support favouring new home and unit builds over established homes.
HASI found 46% of the market looking to buy is the first homebuyers compared with 28% at the same time in 2012.
Generation Y are the most positive about housing affordability in the country, driven largely by an optimistic outlook on their financial position.
45% of Generation Y respondents expected their financial position to improve over the next six months, significantly more than any other generation.
The report also showed buyers were willing to make sacrifices to achieve the great Australian dream of owning their own home.
Consistent with 2012 results buyers were willing to give up luxury items such as swimming pools, luxury cars, and overseas holidays in order to afford a home.
However buyers would not compromise on location, 43% of buyers would not consider properties further than 10 km from their ideal location. Investors were more prepared to look further afield, up to 50 km or more.
Among those looking to buy/build that did not already have a mortgage, Gen X were significantly more willing to put 21% or more of their income towards a mortgage (at 56%).
Baby Boomers and those from the Silent Generation were less willing to increase their mortgage.
Gen Y were significantly more willing to increase their level of debt by more than 10% to achieve their desired standard of living (at 27%).
Unsurprisingly, Baby Boomers and the Silent Generation were significantly less willing to increase their level of debt to achieve their desired standard of living at 69% and 80% respectively.
The influx of Foreign Buyers is still steady with the Chinese leading the way but we also have a large number of OS buyers from almost every corner of the globe.
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