A new survey has shone a light on the challenges first-time buyers face when scraping together a home deposit, with soaring bills and the cost of going out coming in for blame.<\/p>\n
The survey of 679 potential first time buyers by financial comparison website Canstar found that the biggest issue preventing first home buyers from growing their house deposit quicker are bills and household expenses, nominated by 59 per cent of respondents.<\/p>\n
The cost of rent was the second-biggest barrier, nominated by 53 per cent of respondents, while the cost of going out or eating out was nominated by 43 per cent.<\/p>\n
The survey found that 42 per cent of potential buyers feel very or extremely stressed about building a big enough house deposit to purchase a home and a further 48 per cent feel somewhat stressed.<\/p>\n
Most first-time buyers have a budget between $400,001 to $800,000, according to the survey, though 21 per cent are targeting a property worth more than $800,000.<\/p>\n
Many buyers are aiming to take advantage of low deposit schemes, with 36 per cent aiming to save a deposit of up to 10 per cent.<\/p>\n
Nearly three-quarters or 70 per cent of first home buyers have applied or are planning to apply for a state or Federal government first home buyer grant or scheme to help with their purchase, the survey found.<\/p>\n
Canstar’s survey found 79 per cent of first-home buyers aren’t receiving any financial contributions from a parent or family member to assist with accumulating a deposit.<\/p>\n
The survey also found that while 51 per cent are planning to buy with one other person, 45 per cent of prospective purchasers intend to buy on their own, while a further 3 per cent are purchasing with multiple people.<\/p>\n
Canstar’s money expert Effie Zahos, said that market forces were currently working against first-time buyers.<\/p>\n
\u201cFaced with costly living expenses, rising rents, sky high property prices, lower borrowing limits and all of this coupled with little to no wage growth, first time buyers can be discouraged from thinking it’s possible to buy in today’s market,\u201d she said.<\/p>\n
\u201cBut falling property values in some markets could be a “saving grace” for these buyers.<\/p>\n
\u201cStriking while the iron is hot and prices are off the boil could be the sweet spot for first home buyers as long as they take a realistic view of the market and buy what they can afford.\u201d<\/p>\n
Despite the daunting task facing first-time buyers, Ms Zahos said that there are still ways to supercharge savings.<\/p>\n
\u201cOne way is to change your living situation such as moving from renting a house to a unit, which in Canberra could bring in an immediate saving of $186 per week or $132 per week in Sydney and a saving of $51 each week in Melbourne,\u201d she said.<\/p>\n
\u201cCutting back on the takeaway could also help, potentially saving the equivalent of two weeks’ salary.\u201d<\/p>\n
\u201cOne less meal delivery, store-bought coffee and cafe breakfast each week could save you around $55, or close to $3,000 in a year, it’s not to be sniffed at.\u201d<\/p>\n