How first home buyers are saving faster to get off the ‘rental treadmill’

Aussies first home buyers are so fed up with the 'rental treadmill' created by landlords in the past few years they've shredded the time taken to save home deposits despite cost of living pressures.

And the majority of those in Canstar's new First Home Buyer Survey, (61 percent) said they would save more if not for bills and household expenses.

Many FHBs were "radically reducing their spending", purchasing an older property and choosing an apartment over a house to get off renting and buy their own home.

Canstar Editor-at-Large and money commentator Effie Zahos said "nine in every ten potential first home buyers were prepared to make compromises to buy sooner".

"First home buyers being able to save more in a cost of living crisis shows how determined Aussies are to get off the renting treadmill. Property prices are continuing to rise but rents are also rising to historic highs. Renters are no doubt feeling the pressure to get a foot on the property ladder."

Many are asking for help from the Bank of Mum and Dad, for whom 29 per cent are receiving some form of support including cutting out rent completely - which is a barrier to saving for 49 per cent of FHBs.

The Canstar survey found parents were willing to let children stay rent free to save (8pc), help with their living costs (7pc), give a financial contribution to their deposit (7pc), go guarantor on their loan (5pc) and in 3pc of those surveyed mum and dad bought with them to get their child's name on the property title.

The level of support from parents was higher this year (29pc) than last year (21pc), which helped 1,088 potential first home buyers save an average of $1,605 a month - up $188 or 13pc compared to the same time last year, and cutting the time taken to save a 20pc deposit by two years for singles.

A massive 89pc were stressed about their ability to build a large enough deposit, and while 62pc of potential FHBs were regularly saving, 13pc were not in a position to do so yet.

If you're a first home buyer and had enough of paying someone elses mortgage, give us a call to see how we can get you in your own home!

Article sourced: REA

Home Loans
Written by Chloe Boswell
20 July, 2023
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