South Australians most likely to build their own property, new research shows
Caution prevails – but there’s still confidence
Despite cost of living and interest rate concerns, almost half of South Australians think it‟s a good time to invest in property – and more than any other state or territory in Australia, South Australians are the most adventurous when it comes to building their own homes, according to the latest poll released by mortgage provider Homeloans Ltd.
The Homeloans Home Buyer Barometer Q2 2011, which surveyed 2000 Australian first home buyers, homeowners and investors, found that 44 per cent of South Australians believe the market is right to invest in property, one in three were unable to give an opinion, whilst a quarter were adamant that now definitely isn‟t the right time to be buying.
And although it appears that brand new properties or properties requiring no renovation are the most in demand in the state – with 52 per cent of respondents saying this is what they would prefer – a huge 29 per cent would be keen to build their own house or unit. This compares with only 21 per cent in Queensland and Victoria, 18 per cent in Western Australia, and 15 per cent in New South Wales. Just 19 per cent of South Australians would be keen to renovate.
“Our research really reflects current trends we‟re seeing amongst borrowers,” says Greg Mitchell, Homeloans‟ general manager retail sales. For example, new developments which are proving popular are the more premium properties close to the CBD, in addition to developments in the outer ring metropolitan suburbs catering for the lower to medium income earners. Purchasers can also save on stamp duty for these new medium density housing developments.
“In addition, the affordable housing scheme in South Australia enables those who qualify to build their new home in desirable subdivisions close to the CBD – areas they might not normally be able to afford to buy in.
“We have also noticed more and more applications coming through from borrowers developing their investment portfolios, demolishing existing homes on the „traditional-size‟ allotments and building 2-3 investment properties,” adds Mitchell.
Australia-wide, interest rate concerns have taken a backseat to the rising cost of living, which is the top financial concern for homeowners and homebuyers. In South Australia, the key financial concerns were increasing cost of everyday living (37 per cent), followed by interest rates (22 per cent). On a state by state basis, South Australians were the most worried about job security (12 per cent). Another financial concern was the costs associated with raising a family (10 per cent).
The Homeloans Home Buyer Barometer also showed the greatest barriers to home ownership in South Australia were high property prices (46 per cent), saving for a deposit (29 per cent), and fear of not being able to meet interest repayments (23 per cent).