Property purchasing goals have remained intact in Australia despite the COVID-19 crisis, with less than a quarter altering their goals in the current environment, according to research.
A survey by online brokerage Lendi has found that 61 per cent of respondents said the coronavirus pandemic, government stimulus measures and the broader economic environment have not impacted their property ownership goals.
The survey of 1,100 Australians has revealed that 17 per cent said they have become more ambitious about their home ownership goals, while 22 per cent said they have become less ambitious.
The survey, which asked respondents about their life goals and what they put on hold in 2020 and what they have in store for 2021, found that 20 per cent put off moving to a new area in 2020, while 21 per cent plan to move to a new area in 2021.
In 2020, 19 per cent postponed buying a property, while 19 per cent have planned to purchase a property in 2021.
Meanwhile, 10 per cent of the respondents put off selling their property last year, while 21 per cent intend to sell a property in 2021.
Commenting on home ownership goals among the respondents, Lendi co-founder and CEO David Hyman said: “The great Australian property dream appears to have survived the pandemic and only 22 per cent of people say their home ownership goals have become less ambitious in the current environment.
“This buoyancy is in part due to low interest rates which, for those with a secure income, are making it a great time to buy rather than rent.”
When respondents were asked what their biggest financial concerns were for 2021, the top issues were utility costs (23 per cent), rent (15 per cent) and mortgage repayments (14 per cent), alongside food and grocery costs (14 per cent). Stagnant wages were cited as a concern by 10 per cent of the respondents.
Nearly half – or 47 per cent – of those surveyed said that they will consolidate or reduce their debt in 2021.
“Low interest rates have certainly helped ease the pressure for many Australian households, and in 2021 we will see more Australians consolidating their debts to pay them off faster,” Mr Hyman said.
When asked about overall financial goals, 50 per cent of respondents said that they were forced to reset their financial goals during 2020, but 48 per cent said they feel more optimistic about reaching their goals in 2021, while only 21 per cent feel less optimistic.
Compared with 2020, 42 per cent of people think that they will be able to save more money in 2021, while 33 per cent believe that they will be able to earn more money this year.
“The events of 2020 saw many Australians forced to put life on hold, but 2021 looks like we’ll be seeing plans reignited with a greater sense of enthusiasm and perhaps even security,” Mr Hyman said.
“Whether it’s taking holidays, renovating, moving or having kids, it seems Australians are keen to crack on with it and get things back on track during 2021.”
The survey results for home buying intentions in 2021 have been released at the same time as data from the Commonwealth Bank Household Spending Intentions (HSI) series, which has shown that spending intentions for home buying declined in December 2020 compared with November 2020 figures, but were higher than the levels a year ago.
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.
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