First homebuyers not influenced by grant
July 27, 2009
Buyers jumping into the market for the first time aren't being influenced by the federal government's first home buyers grant, according to a new survey.
The BankWest/Mortgage Finance Association of Australia (MFAA) survey, of almost 1000 people, found that only 6.2 per cent of people surveyed mentioned the grant as a motivation to buy.
According to the survey, 23 per cent said low interest rates was the single biggest reason to buy, followed by almost 18 per cent who gave lower house prices as their motivation.
The survey also found that almost 60 per cent of homebuyers wanted to buy a home within the next 12 months, up from 39.2 per cent last November.
MFAA CEO Phil Naylor said the surge in interest from first homebuyers was due to historically low interest rates and moderating home prices, with the first home owners grant being less of a consideration.
'The jump in sentiment suggests first homebuyers are more confident about the prevailing economic climate and the property market,' Mr Naylor said.
First-time homebuyers were most likely to be under the age of 40, living with parents or mixed families and holding an investment portfolio of less than $150,000, according to the survey.
