First home buyers tighten belts to save for dream purchase
WOULD you give up a holiday for your first home?
A recent survey by Mortgage Choice found that 83% of first home buyers are prepared to sacrifice aspects of their lifestyle, with 60% willing to miss out on a holiday if it meant getting into the market earlier.
The 2013 Mortgage Choice Future First Home Buyer Survey discovered the majority of first home buyers plan on saving for an average of only one to two years.
From the 1000 Australians surveyed, one in four future first home buyers only plan to save an average of 10% of their monthly income after tax.
Mortgage Choice spokeswoman Jessica Darnbrough said it was surprising to see home buyers weren't saving more.
She said Australians should knuckle down to save a deposit.
"Of course, this doesn't mean that you need to cut out all of life's little luxuries," she said.
"If you put a savings plan in place and set realistic, achievable goals, you should be on your way to home ownership in no time."
According to the findings, 24% of respondents were happy to delay having children and 19.4% said they would move back with parents or in-laws to save rent.
When it came to concerns, 48% of respondents said they were anxious about the length of time it would take to pay off the mortgage.
Gladstone Ray White director John Fieldus said young people took great pride in owning their car and in having home ownership.
"This has been particularly evident in Gladstone where finding rental property has been unstable in recent years," he said.
"Tenants have run the risk of having to move every six months.
"I think home ownership is still very much the great Australian dream, particularly in Gladstone where incomes are higher."
Mr Fieldus said the result of a 10% average of savings for a first home was a consequence of banks loaning 90% plus, on many properties.
"People are keen to take on property ownership and they often find that 10% is the doorway to this."