Affordability, house price growth top for first home buyers

A survey has found affordability and potential for house price growth are the two main concerns for first home buyers.

The survey, commissioned by St George Bank, surveyed 1,000 first home buyers nationwide and found value growth is more important than distance to work (ranked 3^rd priority), distance to shops and attractions (4^th) and distance to family and friends (5^th).

Some 26.4 percent of respondents said they had to make compromises to buy their home, with nearly half (49.8 percent) of those compromising on location, and 45.7 percent 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