Rising House Prices: Most First Home Buyers Need Alternatives

Soaring house prices are presenting a significant challenge for aspiring homeowners in Australia, with new research revealing that the majority (76%) of first-time buyers (FHBs) lack the traditional 20% deposit.

This Helia-commissioned CoreData study paints a stark picture for FHBs, highlighting the need for alternative pathways to homeownership.

Key Findings:

• Deposit Shortfall: The research surveyed over 1,000 home buyers and found that 76% struggle to save the traditional 20% deposit due to rising house prices.
• Shifting Strategies: Faced with this hurdle, 58% of home buyers are exploring alternative routes to enter the property market.
• Government Schemes: Rising Interest but Limited Reach: While government assistance programs are witnessing increased interest (48% considering them in 2024 vs 30% in 2023), eligibility restrictions may be hindering wider use, with only 33% of recent buyers leveraging these schemes.
• Alternative Solutions Gaining Traction:
• Dream Homes on Hold: The report highlights the impact on aspirations, with 84% acknowledging their first property won't be their ideal one, and 35% considering giving up altogether.

LMI: A Bridge to Homeownership

LMI allows FHBs to enter the market sooner and build equity faster by enabling purchases without a full deposit.

Experts See Buyer Resilience

Industry experts are encouraged by the willingness of prospective buyers to explore alternative pathways to achieve homeownership.

Mortgage Brokers: Key Navigators

The report emphasizes the growing importance of mortgage brokers:

• Increased Broker Usage: 56% of recent home buyers reported using brokers (up from 54% in 2023).
• Benefits of Brokers:
• Importance of Guidance: With 42% unaware of alternatives without a 20% deposit, Helia highlights the crucial role of brokers: "Mortgage brokers are a first point of contact, supporting, guiding, and educating aspiring home buyers... In this challenging market, brokers can unlock unique solutions."

Looking for Guidance?

Nfinity Financials, a team of experienced mortgage brokers, can help navigate the complexities of homeownership and explore alternative options. Contact Nfinity Financials today to turn your dream of homeownership into a reality. Call us at?0405 593 807 to book a consultation today! ?For additional assistance, secure an appointment at: https://team.nfinityfinancials.com/paragdixit/. ?We're here to help you!