Author: Virginia Irwin

First home buyers are getting older

The Greater’s Lending Manager for Tamworth and surrounding areas, Virginia Irwin says a new survey shows first home buyers are waiting until they are older and saving for longer in order to buy their home. She shares some tips to help first homebuyers reach their goal faster.

A new survey has found that the number of first homebuyers aged 30 and over is now more than 60% up from 54% in the previous year.

This annual online survey of 1,000 Australians who plan to buy their first home in the next two years found 41% of first homebuyers will be aged 30-39 years, 39% will be 18-29 years of age, 14% will be 40-49 and 6% will be aged over 50 years. Hence, or more years has increased survey to 61%.

First homebuyers now intend to save for an average of two years before purchasing their property, compared to 1.8 years in 2011.

The survey found first home buyers had fears about:

  • job security (18% in 2012 compared to 11% in 2011)
  • rising house prices (22% in 2012 compared to 31% in 2011)
  • the impact of interest rates on their ability to purchase their first home (8% in 2012 compared to 14% in 2011).

The three biggest barriers holding all Australians back from purchasing property are: 

  • the rising cost of living impacting people’s ability to save a deposit (37%)
  • rising property prices (20%)
  • the rising cost of rent also impacting their savings (13%).

 The survey was conducted by Mortgage Choice.

With the rising cost of living it is hard to save for a deposit, after paying rent. If you are really serious about getting that deposit and your dream home here are my three tips to help you achieve your goal sooner. 

1. Write a list of all your expenses and see where you can cut back. Not buying a coffee every day will save you almost $1,500 per year. 

2. Put some savings direct from your pay into a Bonus Saver Account which gives you bonus interest if you make that one deposit and no withdrawals in a month. Transfer any other savings you have at the end of the month into that account. If you haven’t got money in your everyday account it is easier not to spend.  

3. Get the home loan that is right for you. Shop around for the best rates. Look at the comparison rate to get the true cost of the loan (including fees and charges). 

If you’d like to know more about buying your first home please read our FREE First Homebuyers Guide, call into a branch or phone us on 131386. 

How did you save for your first home? Please share your story and tips below.