 Increase in first homebuyers
First home owners are tempted to purchase property as rates are lower and the boost to the first home buyer grant is available. According to a 2009 Mortgage Choice survey of 1,012 first home owners, 76 per cent plan to buy a home, which is up from 54 per cent a year before.
Kristy Shephard, senior corporate affairs manager with Mortgage Choices says a combination of factors make now a good time for first homebuyers.
Ms Sheppard sees first home buyer getting more and more confident about owning property.
"It's great to see our survey results showing first homebuyers-to-be are considering all of their options when it comes to owning their own place - whether it is a short-term savings plan to boost their deposit, making sacrifices to achieve their long-term goals, or buying with a partner to share the responsibility." Ms Shephard said.
Official interest rates have fallen 400 basis points since September and although the Reserve Bank of Australia decided to leave rates on hold this month, some further smaller cuts are predicted.
Along with lower rates, there is now an increase to the First Home Owner Grant, with $14,000 available for established houses and $21,000 for building or buying a new home.
Eight per cent of survey respondents had not even started saving yet and another eight per cent wanted to use the first home buyer grant as the only form of savings or deposit.
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