One in five Australians interested in buying property amid recent price declines: Finder

Comparison site Finder have found that just under one on five Australians (19%) are interested in buying property amid the recent price falls.

The survey of 2,026 Australians found the property slump had no effect on the purchase decisions of 30% of people, while the remaining 50% are not looking to buy property at this time.

Kate Browne, Finder’s personal finance expert, said savvy Millennials see the downturn as an opportunity to create wealth.

“There’s no reason Millennials can’t have their smashed avo and eat it too – especially in this current market,” she said.

“But being an opportunist requires planning. Boost your savings and get home loan pre-approval in place so you are ready to snap up a bargain when you see one.”

The survey shows 35% of Australians aged 34-38 believe they have something to gain from recent price drops.

That equates to 1.9 million Gen Ys buoyed by the prospect of a bargain. 

“A housing market slowdown is a fresh start for those who had been priced out of the market,” she said.

“At the same time, a lot of investors want to get in while prices are dropping and interest rates are low.

“Property is a long term investment and buying during a downturn could put savvy Millennials in a good financial position once the market picks back up.”

The research shows just 4% of Baby Boomers are more likely to buy as the major markets cool.

Finder's tips for property buyers

- Future rate hikes

While we’re in a historically low-rate market at present, you should always factor in a buffer of 2-3% on top of your current home loan interest rate to accommodate for future rate hikes. It’s not something everyone thinks about at the time of purchasing property, but it’s a crucial consideration.

- What’s happening in the local area 
Consider how close the home is to public transport, schools and shops. Also, check for plans of urbanisation to assess its potential – a new shopping centre, park or increased public transport options could add value to your home. 

- Additional costs 
Many first home buyers can get caught up in the overall sale price and forget to take into account all the other costs involved with buying a house. From building inspections, to stamp duty and solicitor fees, there’s plenty to consider – and budget for. Then there’s removalist costs to get your home set up.