Today’s Australian home buyers are typified as being older and smarter when it comes to investments. Younger home buyers in their 20s are no longer dominating as first home buyers, but those who are in their early 30s are stepping up to the mark.
Today’s First Home Buyers are Investors
Statistically speaking, the largest portion, approximately 14 percent of all home buyers, are first home buyers aged in their 30s. These home buyers are seeking to buy new and established homes as investments, rather than as owner-occupiers.
Property experts are also noting that a larger portion of sibling combinations such as brother/brother, brother/sister or sister/sister are also beginning to emerge in the housing market. These combinations are pooling their finances together so that they can buy property.
Property experts say that they expect the number of these buying combinations to increase as housing affordability decreases. They also estimate that these combinations will aim to buy a property firstly as an investment and then, at a later date, use this investment as a stepping stone to purchase owner-occupied property.
Previous Home Buying Trends
Winding the clock back 20 to 30-years, first home buyers were typically in their early to mid 20s. Many had no children or small children under the age of 5 years. These home buyers also typically bought a home as an owner-occupier, not as an investor.
These home buyers were also buying property that was more affordable when compared to earning capacities. The average house price in the 1970s was estimated to be three times average earnings, today it is estimated to be seven times average earnings.
Are you looking to buy a first home? If so then contact eChoice we can help you find the right home loan.
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!
Written by eChoice