Latest news with #FirstHomeBuyerReport2025
News.com.au
29-07-2025
- Business
- News.com.au
Why the Aus property market is stacked against first time buyers
First home buyers are repeatedly being outbid for homes they can actually afford, with 20 per cent reporting they had missed out on at least three properties. And according to Finder, the strong demand compared to supply is a sure sign that the market is stacked against first time buyers. Finder's First Home Buyer Report 2025 – based on a survey of 1006 first home buyers in Australia – revealed a whopping 61 per cent had missed out on a property they were seriously considering. Being outbid by a competing buyer was the most common reason, affecting one in three (33%). Almost one in four (23%) didn't get the property they wanted because another buyer made an unconditional offer, agreeing to buy the property without contingencies. And a further 11 per cent lost their chance because they couldn't secure pre-approval from their lender in time, while 7 per cent missed out because a competitor offered a shorter settlement period. Finder's report shows almost half (42%) of first-time buyers who secured finance missed out on a property they were seriously considering two or more times, while one in five (20%) had this happen on at least 3 properties Finder personal finance expert Sarah Megginson said the majority of first home buyers were beaten to properties they wanted. 'Securing a first property can be a very frustrating and exhausting process that drags on for months on end, which is why it's so disappointing when you're pipped at the post,' Megginson said. 'When nearly two-thirds of buyers are missing out on properties they're serious about, it's a clear sign that the market is stacked against new entrants. 'With only a few houses to choose from at an affordable price, buyers are often competing for the same properties. 'As budgets get stretched, buyers resort to whatever it takes to secure their dream property.' The research also revealed that 60 per cent of first home buyers wanted to buy now following recent interest rate cuts. One in four buyers are looking interstate or in a different region, with 65 per cent saying they expect to spend 30 per cent or more of their income to meet mortgage repayments. Seventy per cent are buying or have bought with less than a 20 per cent deposit meaning they are subject to Lenders Mortgage Insurance (LMI). Nearly two in three (65%) first home buyers are already, or expect to be, in mortgage stress which is defined as spending 30 per cent or more of gross income on mortgage repayments. 'The Australian housing market is in a league of its own,' the report said. 'Residential property accounts for 64 per cent of household wealth, compared to a global average of less than 50 per cent and when adjusted for population, the value of Australian property is double that of the United States. 'Since the Global Financial Crisis (GFC) in 2008, Australian house prices have consistently outpaced both the United States and the UK.' Finder head of consumer research Graham Cooke said the dominant motivator for buying was no longer just the aspiration to own a home, but the fear of missing out (FOMO). 'FOMO, fuelled by rising prices and social pressure, has overtaken traditional financial planning for many buyers,' Cooke said. Forty-five per cent of buyers who purchased in the past year say they regret their decision, with 14 per cent of those surveyed reporting they had no savings left. And 26 per cent revealed they paid to much. 'This kind of financial risk-taking reflects not just ambition, but anxiety – the belief that if you don't buy now, you may never be able to,' Cooke said. Interestingly, 14 per cent of those surveyed in both NSW and Queensland said they were looking to buy outside of their home state. To help Australians have a better chance of cracking the property market, Finder is hosting a free, online First Home Buyer Masterclass. Participants will be guided through how to turbocharge their deposit, get approved for a loan easily and quickly, and get prepared for property ownership. Megginson said being prepared can make all the difference when the right property does come along. 'That's why we're hosting this free masterclass – to help buyers understand the process, avoid common pitfalls, and improve their chances of success,' she said. 'Our expert panel is going to share some of the steps you can take to have a competitive advantage over other buyers and hopefully, be in the category of first home buyers who get to sign a contract and secure their home.' The masterclass will be held online on August 5 at 12.30pm with spaces now open for enrolments.
7NEWS
26-06-2025
- Business
- 7NEWS
One in five first home buyers turn to the bank of Mum and Dad
With housing affordability an ongoing issue in Australia, with house prices continuing to outpace incomes, many young Australians are turning to their parents for help to buy their first property. New research from comparison site Finder has revealed that almost 20 per cent of new home buyers dipped into the bank of mum and dad to purchase their new home. The Finder's First Home Buyer Report 2025 - based on a survey of more than 1000 first home buyers in Australia - found almost 1 in 5 (17 per cent) of first home buyers received financial help from their parents to save their deposit. Know the news with the 7NEWS app: Download today This equates to almost 20,000 first home buyers a year who are now lucky enough to receive financial assistance from their parents. The report also revealed that the proportion of new buyers tapping into the bank of mum and dad has increased significantly from just 11 per cent in 2022. Sarah Megginson, personal finance expert at Finder, said millions of Aussies are now counting on the bank of mum and dad to secure a home in Australia. "The bank of mum and dad has become one of the biggest unofficial lenders in the country," Megginson said. "For many young Australians, homeownership feels like a dream that won't be realised, unless you've got parents who can tip in some financial help - sometimes up to six figures," she added. She said first home buyers with parental help aren't just getting into the property market earlier, they are also getting in "with more savings, bigger budgets, and a huge head start." The report reveals first home buyers who receive financial support from their parents had 41 per cent more money left over in savings after buying their first home, compared to those who didn't receive any money from their parents. The research also found that for buyers without family support, 40 per cent took five years or more to save a deposit. In comparison, among buyers who received assistance, just 29 per cent took five years or more to save for a house. The other top strategies young Australians use to save for their first home include living at home with their parents (21 per cent of first home buyers); spending less on dining out (20 per cent); and taking on a second job (17 per cent). Meanwhile, the number of first home buyers who said they simply saved slowly over a long period of time fell from 23 per cent in 2022 to 17 per cent. While increasing numbers of parents are supporting their children to buy their first home, Megginson warned that too much generosity from parents' could hurt their own standard of living in retirement. "Supporting your kids is part and parcel of being a parent, but you need to do it in a way that's sustainable for everyone," she said. "I've heard of parents who end up working longer than they planned, delaying retirement or leaving themselves financially short once they retire, because they were too generous when giving their kids a financial leg-up," she warned. The report also found that the percentage of first home buyers who bought out of a worry that property prices would soon become too expensive has increased from 31 per cent in 2022 to 38 per cent in 2025. Meanwhile, 60 per cent of first home buyers say recent interest rate cuts influenced their decision to buy now. However, the survey also revealed that nearly two in three, or 65 per cent of first home buyers, spend or expect to spend 30 per cent or more of their income on mortgage repayments, placing them in mortgage stress.
