Australians are feeling more confident about their home buying plans, according to new research.
The latest Westpac Home Ownership Report has found 44% of Australians plan to buy a new home in the next five years – increasing 9% since July 2023.
Additionally, increases have also been recorded in those planning to buy an investment (up 6%), those planning to upsize (4%) and those planning to renovate (4%).
For first home buyers however, the research uncovered a different story, recording a 3% decrease in Australians planning to achieve home ownership in the next five years with 86% admitting recent cost-of-living pressures have delayed their home buying plans.
To combat affordability challenges, aspiring homeowners are getting creative and becoming more open to compromises to break into the market. More than half (56%) are planning to buy with their partner (up 16%), three quarters are willing to buy somewhere they weren’t previously considering (up by 9%) and half are considering ‘rent-vesting’ to achieve home ownership.
Almost half (47%) of the respondents also said they were willing to pay for Lenders Mortgage Insurance (LMI) to get into their first home sooner, with two thirds cutting back on expenses like food delivery to help save for a deposit.
Westpac Managing Director of Mortgages Damien MacRae says Aussies are sharpening their focus on long-term goals.
“While some buyers have paused their housing plans, the intention to buy remains strong and prospective buyers are becoming more ruthless with their goals”, MacRae noted.
“They understand it’s a big task, but they are determined to break into the market and are willing to compromise to get there.
“Buyers are casting their expectations wider, willing to compromise on location and are forgoing everyday luxuries like food delivery. They are also more inclined to relocate and move to apartment living.”
The research further uncovered that while a house is still the preferred property this has decreased by 5 percentage points since 2021, while apartments and units have jumped up by 7%.
Additionally, preferences for a townhouse have doubled and house and land package preferences have quadrupled4.
“During the pandemic we saw more buyers seeking property further from the city in pursuit of more space, however it appears buyers are willing to concede on location in order to get a foot in the door”, MacRae concluded.
