Photo by Allison Heine on Unsplash
More than 6 in 10 Aussies with property goals have changed their plans in the wake of COVID-19, according to a new survey.
Research commissioned by mortgage broker Aussie Home Loans has found that COVID-19 has dampened the hopes of many people in the property market, despite the 'perfect storm' of opportunities whipped up by the pandemic.
The mortgage broking house surveyed nearly 2,800 Aussies in June 2020.
Of those, close to 1,900 had housing plans to achieve within five years, such as buying a new home or downsizing.
But two thirds of respondents with plans said the pandemic has made them uncertain about reaching their property goals.
More than half said they feel "nervous" about investing in property, with 70% saying job security and saving money are more challenging now.
Over a third are also saying they are focusing more on building their savings than they were prior to the pandemic.
Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.
Lender | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Variable | More details | ||||||||||||
| FEATUREDUNLIMITED REDRAWSSPECIAL OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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| Variable | More details | ||||||||||||
| FEATURED100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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| Variable | More details | ||||||||||||
| NSW/VIC/SA METRO & INNER REGIONAL AREAS | Variable Home Loan (Principal and Interest)
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Variable Home Loan (Principal and Interest)
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| Variable | More details | ||||||||||||
| REFINANCE ONLY | Variable Rate Home Loan – Refinance Only
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Variable Rate Home Loan – Refinance Only
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| Variable | More details | ||||||||||||
| NO ONGOING FEESFREE REDRAW FACILITY | Live-in Variable Loan (Principal and Interest) (LVR < 90%)
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Live-in Variable Loan (Principal and Interest) (LVR < 90%)
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- Fast turnaround times, can meet 30-day settlement
- For purchase and refinance, min 20% deposit
- No ongoing or monthly fees, add offset for 0.10%
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 28, 2022. View disclaimer.
Aussie's chief customer officer David Smith said the extent to which the crisis was unsettling Australians could lead to 'missed opportunities' in the property market.
“In a market which sees property prices across Australia’s capital cities continuing to fall, interest rates remaining the lowest on record, a range of refinancing options, access to lender cashback incentives, and a range of government initiatives and grants available, there are many opportunities for both first home buyers and homeowners to secure their goals," he said.
First home buyers under the pump
Coinciding with Aussie's survey findings, Gateway Bank has revealed 68% of first home buyers have been forced to put their plans on hold during the pandemic.
Gateway's survey also found half of first home buyers have tapped into their deposit during the pandemic, with 80% also reporting they will need to save for an additional year to get their deposit.
Forty five per cent directed their withdrawn funds to day-to-day expenses, while 36% put it towards an emergency fund.
Just over one in ten re-directed their deposit money to sharemarket investments.
Despite the pandemic's hit to first home buyers' savings, Gateway's CEO Lexi Airey said the "dream of home ownership remains alive".
"Some first home buyers are taking advantage of Government Schemes in a bid to circumnavigate the need for a 20% deposit," Ms Airey said.
However, the survey also indicated more than one in five first home buyers were unaware of any available government schemes.
Ms Airey pointed towards various initiatives such as the first home owners' grant (FHOG), the first home loan deposit scheme (FHLDS), the first home super saver scheme (FHSSS), and stamp duty concessions.
“These schemes and other options such as lenders mortgage insurance or a family guarantee are designed to help first home buyers purchase their property sooner," she said.
"Awareness of these measures is generally quite low, and those looking to enter the property market for the first time could be missing out on an opportunity to put their pre-COVID home ownership plans back on track."
Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.
Rates based on a savings balance of $10,000. Sorted by total interest rate. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed. Rates correct as of June 28, 2022. View disclaimer.
Disclaimers
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.
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