More than half of potential future Australian home buyers believe they can afford a standalone house in the next five years.
The survey of 1,500 prospective home buyers, of which 50 per cent comprised first home buyers, found that 55 per cent of first home buyers want to buy a standalone house in their desired location by 2027.
The data from Great Southern Bank revealed that Australians were prepared to make trade-offs in order to achieve their dream.
For example, 71.6 per cent of all respondents would consider buying an apartment or unit as another means of housing and 24 per cent said they would be willing to move to a less desirable suburb to buy their ideal house.
The data comes as home ownership has become more difficult for many Australians as rising interest rates and high inflation tighten household budgets.
The year ended with the Reserve Bank of Australia’s final 25-bp cash rate hike in December, taking the cash rate to 3.1 per cent.
Great Southern Bank’s chief customer officer, Megan Keleher, said it’s great to see Australians not giving up their dream of home ownership.
She added that the vast majority of Great Southern Bank home loan customers are ahead on their repayments, showing they are financially prepared to manage any further interest rate increases.
“Those unsure about the way forward should not give up on their aspirations to one day own a house but could consider a variety of steps along the journey.
“The journey to owning a standalone house or your forever home may take time and may require trade-offs in the process.
“This may include options like buying an apartment, a duplex, a smaller house or even moving to a location slightly further afield to take that first step onto the property ladder.”
In addition, the survey also revealed that budding first home buyers are relying on the government’s Home Guarantee Scheme, including the Regional Home Guarantee to get their first property, with 72 per cent hoping to use the support compared to just 55 per cent who purchased in the past five years.
“Looking at smaller or more affordable housing options might also mean the property is within the price caps that apply for the government’s Home Guarantee Scheme, including the new Regional First Home Buyer Guarantee, providing another boost for first-time buyers,” Ms Keleher added.
Given that more than 1 million mortgage holders were estimated to be at risk of ‘mortgage stress’ in the three months to October 2022, as the cost of home ownership has skyrocketed, the government is working to deliver on its election promise to boost housing investment and supply across Australia.