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The many barriers Aussies face on the home ownership journey were highlighted in the FBAA’s Buyer Renter Index Research.
According to the report, meeting the 20 per cent deposit recommendation proved difficult, with 54 per cent of prospective buyers unable to meet the target, opting for lenders mortgage insurance or guarantor loans.
Forty-nine per cent of respondents plan to purchase a property in the next five years. Of the other 51 per cent who do not plan to, 30 per cent cannot afford it.
Just 53 per cent believe now is a good time to enter the property market. There are a variety of issues making people hesitant:
- Eighty-two per cent said purchasing a property is getting harder.
- Seventy-three per cent said finding a property that suits my needs is difficult.
- Seventy-two per cent said they will have to cut back on spending on hobbies and going out to afford a property.
Despite this, 70 per cent said they were actively looking to purchase a property.
Government policy continues to prove a hurdle too, with 59 per cent of those who do not own property dissatisfied with government tax policies and 47 per cent dissatisfied with government housing grants.
Just 28 per cent of those who do not own property are satisfied with government social and affordable housing programs.
Meanwhile, 39 per cent of those with loans are showing signs of potential mortgage stress and are allocating more than 30 per cent of their income to mortgage payments.
FBAA managing director Peter White said: “The Australian property dream is still well and truly alive, but governments must work harder to help people achieve it.
“There has not been an interest rate change since 2023 and it would not surprise me if they again left it unchanged this week. But the clear message from this research is that people are crying out for help and support in the area of government and regulatory policies.
“They desperately want to own property but are demanding action to help them. They don’t want handouts, but they do want policies that make it easier for them, not harder.”
According to White, borrowers should reach out to brokers to help facilitate any questions or concerns with affordability.
“What many buyers don’t realise is that there are often more purchasing options than they realise and some of those options can only be accessed through a finance and mortgage broker,” he said.
“More than half of those surveyed with residential property loans plan to refinance in the next two years, and half say they intend to use a broker. Overall, this research revealed widespread consumer uncertainty around being able to purchase property, and mortgage brokers are best placed to help ease these concerns and provide solutions.
“We know that our customers trust us and that more borrowers choose to use a broker but we should never take that for granted.”
