The truth about home ownership
22 July 2014
It’s no secret that homebuyers face significant barriers when it comes to home ownership.
But a quick review of HomeStart’s annual Home Truths survey paints a refreshingly positive attitude, revealing the majority of young South Australians still believe in the home ownership dream.
The Home Truths survey provides an annual snapshot on the views of 18 to 40 year-old South Australian non-homeowners.
Around 60 percent of the 500 respondents considered home ownership to be of great importance and part of a secure financial future.
On the flipside, 42% of young people felt it was nearly impossible to own their own home and 21% of respondents felt they would never own their home outright.
Homebuyers in South Australia should take some comfort in the fact that Adelaide remains one of the best places in the country to get into the property market.
Prices have remained relatively steady over many years now and we’ve avoided the peaks and troughs experienced by many other state capitals.
At the same time, we continue to have one of the lowest median house prices for a state capital city in Australia – just above $400,000 for Adelaide – as well being one of the most active regions for first home buyers.
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. Whilst the grant for established homes recently ended, there is still a generous $15,000 grant available to build a new home or purchase a house and land package.
There are obviously still a number of barriers that stand in the way for homebuyers, with the survey revealing that the top three challenges to home ownership are the rising costs of living, current personal income levels and difficulties in saving a deposit.
While it’s difficult for policy makers to do much about the first two of these challenges, the deposit challenge is something that’s being actively dealt with by some lenders such as HomeStart.
More innovative products are available in the market, 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 that help reduce upfront costs.
Our priority is to ensure that aspiring homeowners do not give up on their dream.