According to two in five Australians, now is a good time to buy property, despite record-high buyer competition and prices.
The number of Aussies polled in a recent survey who believed it was a good time to buy was higher than those who doubt that it’s a good time to buy.
The Edentify survey commissioned by Mortgage Choice, which polled more than 1000 Australians, also found that the 42% with a positive outlook was also higher than those who think it’s a bad time.
The results showed that Australians had varied opinions on the property market.
The participants’ view that it was a good time to buy may have been influenced by record low-interest rates and the fear of missing out.
According to figures from property group CoreLogic, home prices grew across Australia in March at the fastest rate since late 1988. Listings, which were rising, continue to be low in a number of markets.
Buyers’ outlook may also be mixed because of the type of properties they want to purchase and how they plan to pay for them.
In a different study by comparison site Finder.com.au, nearly one in 10 of participants with plans to purchase their first home were intending to buy as investors.
The most likely to be first homebuyers-investors were the Gen Z, people born after about 1996, followed by Millennials and Gen X.
The Finder study also showed that it is not common for Baby boomers to consider “rentvesting”: renting in one place while renting out another place.
Investing was a typical strategy for people who don’t have the funds to buy in the location they desire.
The concept of reinvesting is gaining momentum among many first-time buyers, as it offers another way towards homeownership for people who have been priced out of the market, particularly in inner-city suburbs.
By “rentvesting”, you can use the rental income to help pay the mortgage, while as a first home buyer you can keep on living in your current home or rent someplace else.