PHOTO: Smashed avocado on toast
According to Mortgage Choice research, while property affordability remains a significant concern, the COVID-19 crisis has caused a shift in priorities, accelerating the desire for homeownership in young people.
Putting brunch on hold, 4 in 5 of those surveyed are now prioritising financial security and nearly 45 per cent of survey respondents are more likely to want to purchase a home now, with a similar number feeling optimistic about achieving their home ownership goals.
Susan Mitchell, Chief Executive Officer of Mortgage Choice, said COVID-19 had provided a wake-up call, and for young people, their focus was now on financial goals.
The majority of survey respondents (85.9 per cent) have changed saving and spending behaviour since the pandemic, with 7 in 10 intending to maintain these habits.
The research found that saving money is now rated as the highest priority for young people.
In order to save and buy sooner, 60.2 per cent are reducing their spending, 58.5 per cent are adding more to their saving accounts, and 43.4 per cent are applying for government grants for first home buyers.
“Despite the challenges of getting into the property market, young people are not giving up on the great Australian dream,” Ms Mitchell said.
“In times of uncertainty, it is human nature to want stability, and this is what investing in property can provide.
“The fact that first home buyers can now access the most competitive home loan rates on record and unprecedented levels of government support such as grants and schemes provides compelling incentives to act on property ownership dreams.”
Many young Australians find buying a home to be a complicated undertaking.
Almost 1 in 3 (32.4 per cent) of first home buyers have minimal confidence in understanding and choosing home loan features, while 1 in 10 are not confident at all.
The research found mortgage brokers are the most likely professional to be relied on in the home buying process.
The key benefits respondents gave for seeking professional advice were to reduce mortgage-related costs and financial worry, as well as to achieve greater control and understanding.
“Mortgage brokers play a critical role in educating first home buyers and giving them the confidence to enter the market.
“Brokers make it easier for first-time borrowers to understand the steps in their home loan journey, compare loan options and make informed decisions about which product best suits their goals and needs,” Ms Mitchell concluded.