More than half of Australians with a property goal feel unsure about how to take the first or next step, despite feeling more optimistic than they did nine months ago, according to new research from Aussie Home Loans.
The research, commissioned by leading mortgage broker Aussie, highlights the effect confusion and uncertainty are having on the ability of aspiring property buyers to take advantage of the current favourable home loan lending conditions.
Although 64 per cent said they are excited about the possibility of achieving their property goals in 2021, 1 in 3 respondents also reported feeling helpless and worried when it comes to their prospects in the current market.
Over half (53 per cent) said market conditions are one factor holding them back from achieving their property goals, including 35 per cent who identified competition in the market and 31 per cent who pointed to difficulty finding the right property.
Aussie, CEO Lending, David Smith, said the clear message for aspiring property buyers who have found themselves feeling ‘stuck’, is that they are not alone.
“The disparity in our research is striking. Australians are hearing about the low interest rates, the government incentives and grants, and they know there are opportunities in the property market, but they can’t seem to shake the emotion of feeling stuck and helpless.”
“With two in three aspiring buyers missing out on properties because the market was too competitive, over half not knowing what suburbs they can afford to buy in, and two in five confused about the current house prices in their desired suburb, the current housing boom is creating a form of ‘progress paralysis’ amongst many Australians,” he said
“To help property buyers become unstuck and shake off this paralysis, Aussie Home Loans has created the Suburb Spotter Map, an interactive map which draws on CoreLogic data to help prospective buyers quickly and easily spot suburbs across Australia that they could buy in based on median property prices, deposit amounts or the deposit they have saved or would like to save.”
“We wanted to create a thought starter for property buyers to help them understand not only median property prices but, even more importantly, the deposit required in their desired suburbs, along with the ability to expand their search to find surrounding suburbs which may meet their criteria and be that little bit more within reach.”
“We understand finding the right home can take time, but there are also other larger issues at play when it comes to people feeling they can’t move forward.”
“Our research found that 2 in 3 are missing out on properties because they were not ready and over half of Australian property buyers say they don’t know where to start when it comes to obtaining a pre-approval, despite a pre-approval providing an important head start in the current market, where houses are taking an average of just 36 days to sell.”
According to the research, Australians are also confused when it comes to understanding home loan language (45 per cent), how to secure the required finance or a home loan (40 per cent) and the pre-approval process (41 per cent).
“If you don’t understand the home loan process, you can speak to a mortgage broker with no obligations, who can help you understand your financial situation and borrowing power, explain the schemes and grants that may be available to you, and assist you in explaining and obtaining pre-approval,” he said.
“In 2021, there are significant opportunities for first home buyers, movers, upgraders, downsizers and investors, but with this competitive market it’s important to do your homework and get organised in advance, so the next time your dream property comes along, you’ll be ready to make your move.”