Aussie dream a reality

First home aspirants are buoyed by more help, writes

MILLENNIALS believe the COVID-19 pandemic has allowed them to get much closer to buying their first home, a new report has found.

One in two millennial home buyers (those aged 24 to 39) are hopeful they can get the keys to their first home within the next one to two years as a result of a subdued property market.

In ING’S Future Focus: Homeownership Report it found many are making changes to fast-track saving up a decent deposit including:

• 59 per cent are directing budgets towards savings;

Sophie Elsworth

• 37 per cent hustle;

• 36 per cent moving back in with their parents;

• 50 per cent would consider living further from the city (45km or more).

ING’S head of home loans Julie-anne Bosich said the findings showed first-time property buyers “haven’t given up on the great Australian dream”.

“They are very focused on savings and getting into home ownership,” she said.

“Covid has changed their lifestyle and it may mean they taking on a side have to re-evaluate the type of home they want to buy and where – they might look at an outer area or cheaper area.”

The report found many Millennials were also making lifestyle sacrifices to fatten their savings.

This included limiting personal spending, reducing dining out experiences, cutting back on recreational drinking, quitting their gym membership and dating less.

There are also government initiatives to help first-time buyers crack into the market, including the First Home Loan Deposit Scheme (FHLDS). The second tranche opened on July 1 and allows eligible borrowers with just a 5 per cent deposit saved up to enter the market.

Realestate.com.au’s chief economist Nerida Conisbee said the inquiries on their site by first-time buyers had surged in recent months.

“We can see that first-home inquiries are rocketing ahead across every state and capital city,” she said.

“There are a lot of things driving it including that therea are no investors around and first home buyers often compete with them.

“We also have very low interest rates so it’s cheaper to borrow and there are lots of state government grants available.”

The FHLDS has on offer another 10,000 spots for eligible borrowers to purchase a property and it’s available through 27 lenders including the Common wealth Bank and National Australia Bank. This means firsttime buyers can avoid the expensive lenders’ mortgage insurance charges which they are usually hit with if they moneysaverhq.com.au don’t have at least a 20 per cent deposit saved up for the purchase.

Ms Conisbee also said the Homebuilder Scheme for eligible first home buyers also provides a $25,000 grant to build a new home or substantially renovate an existing home.

“There’s a lot around helping first-home buyers into the market at the moment,” she said.

“But the big issue, of course, is getting finance because although banks are saying they are open for business, they are still very cautious around lending because of the situation of rising unemployment which is the biggest challenge for most first home buyers.”