It is a well-known fact that breaking into home ownership is a growing challenge for young South Australians. However, more unknown is how the challenge of entering the housing market has impacted the mindsets of young homebuyers in the state.
What the research says
New research from HomeStart has now gone some way to unlocking the views and attitudes of South Australian homebuyers. The research gathered the opinions of 500 potential homebuyers, and generally showed a positive attitude towards home ownership. But it also highlighted some potentially alarming sentiments.
More than 70% of respondents to the survey viewed home ownership as being important and more than 50% linked it to a secure financial future, demonstrating that housing still holds a valuable place in the hearts and minds of South Australians. However, more than 40% saw owning a home as nearly impossible for their generation and almost 70% rated it as ‘hard’ to enter the market, clearly highlighting the difficulties faced by homebuyers.
The main barriers to home ownership were listed as the cost of living, current income level and the deposit required to get finance to buy a home. The results clearly highlight the dilemma many young people face; while they view owning a home as a key to a secure financial future, they are finding it as hard as ever to break into the market.
Homebuyers should take some positivity from the fact that South Australia still remains one of the best places to buy a home in Australia. With steadier market conditions – avoiding the peaks and troughs of other states – South Australia has some of the lowest median house prices in Australia, with Adelaide’s median price sitting at around $430,000.
Homebuyers in South Australia have also had the benefit of generous State Government grants over a number of years now, providing incentives to get into the housing market sooner. South Australian homebuyers also have access to innovative finance products available through HomeStart Finance, such as lower deposit loans and shared appreciation loans that boost the amount homebuyers can borrow.
HomeStart is one of only two state government home ownership assistance models operating in the country and remains committed to helping people get started sooner, with innovative home loan products targeted at middle-income earners and a range of solutions to help reduce upfront costs.
Home ownership will never be challenge free but with the help of innovative house finance models and products in the market, aspiring homeowners don’t need to give up on their dream.
How did you feel when you were in the early stages of home ownership – did you ever think you wouldn’t make it? Do you have any advice for young and aspiring first home buyers?
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