First home buyers rank value growth more important than proximity to family, work or attractions
18 July 2016
After affordability, the highest priority for first home buyers when purchasing a home is the potential for house price growth, according to research commissioned by St.George Bank.
The survey of 1,000 first home buyers across Australia reveals value growth is more important than distance to work (ranked 3rd priority), distance to shops and attractions (4th) and distance to family and friends (5th).
Evaluating which properties presented good value was ranked by respondents as the most difficult task during the house hunting process, showing the importance placed by first home buyers on understanding the market and potential for capital growth.
While buying in a growth area was extremely important for first home buyers, over one quarter (26.4%) of respondents said they had to make compromises to buy their home, with half (49.8%) of those compromising on location, and 45.7% compromising on price.
Ross Miller, General Manager for St.George Retail Banking, said the research highlighted that first home buyers are looking beyond lifestyle factors when purchasing property.
“Buying a first home is more than buying a roof over your head. Our home is usually our biggest financial investment and over the last few decades we have seen a sharp increase in the value of the average Australian home.”
“First home buyers are wise to view their purchase as an investment. To assist first home buyers, St.George Bank offers tailored advice and a range of competitive products, helping make the first home dream a reality,” added Ross.
Summary of key findings
- Other than affordability, buying in an up-and-coming area with potential house price growth was the most important priority when buying a first home;
- Distance to work was the third highest priority;
- Distance to shops and attractions was the fourth highest priority;
- Distance to family and friends was the fifth highest priority.
- Evaluating which properties presented good value was ranked the most difficult task during the house hunting process;
- 26.4% of respondents said they had to make compromises to buy their first home;
- 49.8% of those that had to compromise compromised on location;
- 45.7% of those that had to compromise compromised on price.
For more information about a new or existing home loan, please visit www.st.george.com.au
About the research: Conducted by Pure Profile in January 2016, 1000 respondents were surveyed across Australia.