The coronavirus pandemic has fast-tracked the home buying intentions of young Australians, according to research.
According to research commissioned by Mortgage Choice and conducted by CoreData in October 2020, 45 per cent of the 1,023 respondents said they were more likely to purchase a home due to the coronavirus pandemic.
While the majority of respondents (85.9 per cent) said they had changed saving and spending behaviour since the pandemic (with 70 per cent saying they intend to maintain these habits), young people were found to be particularly keen to save.
According to the research, saving money is now rated as the highest priority for young people. In order to buy a house sooner, 60.2 per cent of respondents said they were reducing their spending, 58.5 per cent were contributing more to their saving accounts, and 43.4 per cent said they were applying for first home buyer government grants.
A similar proportion were feeling optimistic about achieving their home ownership goals, the research found.
Brokers to help first home buyers chase Australian dream
However, while optimism was high, almost a third (32.4 per cent) of first home buyers were found to have minimal confidence in understanding and choosing home loan features, while one in 10 said they were not confident at all.
Correspondingly, brokers were found to be the key professionals relied upon for home buying, with respondents claiming they would seek out professional advice to help reduce mortgage-related costs and financial worry, as well as to achieve greater control and understanding.
Speaking of the findings, Susan Mitchell, chief executive of Mortgage Choice, said: “COVID-19 has given us all a wake-up call, and for young people, this is to focus their attention on their financial goals.
“Despite the challenges of getting into the property market, young people are not giving up on the great Australian dream. In times of uncertainty, it is human nature to want stability, and this is what investing in property can provide.”
Noting that home buyers can access “the most competitive home loan rates on record” and government support, she highlighted that “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,” she said, encouraging borrowers to contact a broker to help “make sense of the often overwhelming process of applying for a home loan”.
The findings echo recent comments made by Raine & Horne CEO Andrew Brien, who recently suggested that the closure of international borders, along with more affordable entry points and government stimulus, could encourage younger Australians to start their real estate journey earlier.
[Related: Cancelled gap years could trigger FHB frenzy]
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