Sydney, Nov 2: In the dynamic real estate landscape of 2023, first-time home buyers (FHBs) are increasingly turning to innovative strategies to fulfil their homeownership dreams.
The recently released Helia Insurance Home Buyer Sentiment Report for 2023 sheds light on the key motivators driving FHBs, highlighting their determination to escape the rental market and make timely investments before potential house price escalations.
A significant 51 per cent of respondents expressed concerns about the affordability of rent, while 43 per cent are eager to secure a property before prices surge further.
Helia Insurance, a leading provider of Lenders Mortgage Insurance (LMI), introduces a flexible monthly strategy that empowers individuals to enter the property market sooner.
This innovative approach to homeownership allows prospective buyers to take their first step with as little as a five per cent deposit, subject to meeting their lender’s eligibility criteria.
Importantly, the long-term advantages of early entry into the property market can outweigh the initial costs associated with LMI.
The report also delves into the challenges faced by FHBs, with over 90 percent finding the property purchasing journey stressful.
A staggering 85 percent consider buying their first property more challenging than ever, and 80 percent struggle to accumulate a 20 percent loan deposit.
As a result, many are exploring alternative strategies to realize their homeownership dreams.
Greg McAweeney, Chief Commercial Officer of LMI at Helia, emphasizes that LMI offers an alternative strategy to achieve homeownership.
It not only facilitates entry into the property market but also positions buyers to potentially invest in larger homes and begin building equity sooner.
Helia’s award-winning Deposit Comparison Estimator serves as a valuable tool, enabling buyers to explore financial options based on their saved deposit.
The report also highlights the sacrifices made by FHBs to save for their properties.
These include cutting back on dining out and takeaway food (54 percent), forgoing treats like takeaway coffee (48 percent), and even reducing spending on medical or wellness treatments (23 percent).
Many FHBs are turning to overtime (32 percent) and taking on secondary jobs, such as driving or freelance work (24 percent), to boost their property savings.
While the majority of home buyers still prefer to invest in capital cities (66 percent), there is a noticeable shift among FHBs considering locations outside the capitals (67 percent, down from 77 percent last year) due to affordability concerns.
Melbourne remains a favored city for home buyers (26 percent), followed closely by Sydney (23 percent).
Large proportions of buyers are also exploring areas outside the major cities.
The report underscores that alternative pathways to homeownership, such as assistance from the “Bank of Mum and Dad,” remain popular.
Over two in five FHBs receive financial support from family members, commonly in the form of deposit contributions (60 percent) or acting as guarantors (29 percent).
Furthermore, Government First Home Buyer Assistance Schemes are attracting one in three eligible individuals.
The 2023 Helia Home Buyer Sentiment Report, commissioned by Helia and conducted by CoreData, offers invaluable insights into the attitudes, behaviours, and outlooks of over 3000 home buyers, including FHBs and investors across Australia.
With over 55 years of expertise in the Australian residential mortgage market, Helia is dedicated to supporting home buyers, having aided 69,073 individuals.
Their 2022 annual report reflects their commitment, with 43,051 new policies issued, ensuring secured home loans valued at $20 billion.
Helia continues to be a dependable partner on the journey to homeownership.
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