Trends in the consumer property market set to see a major rebalancing
NAB’s residential property survey found borrowing capacity tops the list of what Aussies find most important when purchasing a home.
More than eight in 10 (82%) of the respondents said borrowing power was the biggest factor, up from 74% a year ago.
Keep in mind this was before the RBA started increasing the cash rate - now sitting at 2.60%.
The survey was conducted with 350 real estate agents, property developers, asset managers, and owners/investors across the country.
The age-old expression ‘location, location, location’ continued to hold true with 60% highlighting local amenities, shopping, and restaurants as a key factor to consider when shopping for a new home.
NAB Executive Home Ownership Andy Kerr said the property market is starting to see a shift as more Aussies become cautious on what they can afford.
“A trend we are seeing emerge from the pandemic is more Aussies considering apartments over houses for the first time since the survey began, driven by return to office working and caution on borrowing amounts,” Mr Kerr said.
“Affordability and rising interest rates are absolutely part of the equation for home buyers.
“Location is still one of the most critical buying factors and flexible working is here to stay, so where Aussies buy continues to be important.”
Michelle May, Principal of Michelle May Buyers Agents, echoed a similar sentiment saying buyer priorities and budgets are undergoing a massive change.
“Thanks to the series of rate rises, hand in hand with stricter approval processes, buyers are having to re-evaluate their strategy completely,” Ms May said.
“High expectations on wish lists for homes are being brought down as buyers agents help buyers gain perspective with homes they would otherwise overlook.
“The silver lining is that these purchases are ideally more financially manageable and ultimately more compatible with buyer needs.”
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
